BILL NUMBER: AB 1750	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Dodd

                        FEBRUARY 2, 2016

   An act to amend Section 2079.13 of the Civil Code, relating to
real property transactions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1750, as introduced, Dodd. Real property transactions:
definitions.
   Existing law defines various terms for the purposes of some, but
not all, provisions relating to the duty owed to the prospective
purchaser in transactions of commercial and residential real estate,
including, but not limited to, the terms "agent," "buyer," "real
property," "sell," "sale," "sold," and "seller."
   This bill would specify that those definitions also apply to the
remaining provisions relating to the duty owed to the prospective
purchaser.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2079.13 of the Civil Code is amended to read:
   2079.13.  As used in  Sections 2079.14 to 2079.24,
inclusive,   this article,  the following terms
have the following meanings:
   (a) "Agent" means a person acting under provisions of Title 9
(commencing with Section 2295) in a real property transaction, and
includes a person who is licensed as a real estate broker under
Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of
the Business and Professions Code, and under whose license a listing
is executed or an offer to purchase is obtained.
   (b) "Associate licensee" means a person who is licensed as a real
estate broker or salesperson under Chapter 3 (commencing with Section
10130) of Part 1 of Division 4 of the Business and Professions Code
and who is either licensed under a broker or has entered into a
written contract with a broker to act as the broker's agent in
connection with acts requiring a real estate license and to function
under the broker's supervision in the capacity of an associate
licensee.
   The agent in the real property transaction bears responsibility
for his or her associate licensees who perform as agents of the
agent. When an associate licensee owes a duty to any principal, or to
any buyer or seller who is not a principal, in a real property
transaction, that duty is equivalent to the duty owed to that party
by the broker for whom the associate licensee functions.
   (c) "Buyer" means a transferee in a real property transaction, and
includes a person who executes an offer to purchase real property
from a seller through an agent, or who seeks the services of an agent
in more than a casual, transitory, or preliminary manner, with the
object of entering into a real property transaction. "Buyer" includes
vendee or lessee.
   (d) "Commercial real property" means all real property in the
state, except single-family residential real property, dwelling units
made subject to Chapter 2 (commencing with Section 1940) of Title 5,
mobilehomes, as defined in Section 798.3, or recreational vehicles,
as defined in Section 799.29.
   (e) "Dual agent" means an agent acting, either directly or through
an associate licensee, as agent for both the seller and the buyer in
a real property transaction.
   (f) "Listing agreement" means a contract between an owner of real
property and an agent, by which the agent has been authorized to sell
the real property or to find or obtain a buyer.
   (g) "Listing agent" means a person who has obtained a listing of
real property to act as an agent for compensation.
   (h) "Listing price" is the amount expressed in dollars specified
in the listing for which the seller is willing to sell the real
property through the listing agent.
   (i) "Offering price" is the amount expressed in dollars specified
in an offer to purchase for which the buyer is willing to buy the
real property.
   (j) "Offer to purchase" means a written contract executed by a
buyer acting through a selling agent that becomes the contract for
the sale of the real property upon acceptance by the seller.
   (k) "Real property" means any estate specified by subdivision (1)
or (2) of Section 761 in property that constitutes or is improved
with one to four dwelling units, any commercial real property, any
leasehold in these types of property exceeding one year's duration,
and mobilehomes, when offered for sale or sold through an agent
pursuant to the authority contained in Section 10131.6 of the
Business and Professions Code.
   (l) "Real property transaction" means a transaction for the sale
of real property in which an agent is employed by one or more of the
principals to act in that transaction, and includes a listing or an
offer to purchase.
   (m) "Sell," "sale," or "sold" refers to a transaction for the
transfer of real property from the seller to the buyer, and includes
exchanges of real property between the seller and buyer, transactions
for the creation of a real property sales contract within the
meaning of Section 2985, and transactions for the creation of a
leasehold exceeding one year's duration.
   (n) "Seller" means the transferor in a real property transaction,
and includes an owner who lists real property with an agent, whether
or not a transfer results, or who receives an offer to purchase real
property of which he or she is the owner from an agent on behalf of
another. "Seller" includes both a vendor and a lessor.
   (o) "Selling agent" means a listing agent who acts alone, or an
agent who acts in cooperation with a listing agent, and who sells or
finds and obtains a buyer for the real property, or an agent who
locates property for a buyer or who finds a buyer for a property for
which no listing exists and presents an offer to purchase to the
seller.
   (p) "Subagent" means a person to whom an agent delegates agency
powers as provided in Article 5 (commencing with Section 2349) of
Chapter 1 of Title 9. However, "subagent" does not include an
associate licensee who is acting under the supervision of an agent in
a real property transaction.