Amended in Senate April 18, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1750

Introduced by Assembly Member Dodd

February 2, 2016

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


AB 1750, as amended, 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 tobegin delete the remaining provisionsend deletebegin insert a provisionend insert relating to the dutybegin delete owed toend deletebegin insert to informend insert the prospectivebegin delete purchaser.end deletebegin insert purchaser of specified property of common environmental hazards.end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P1    1


Section 2079.13 of the Civil Code is amended
2to read:



As used inbegin delete this article,end deletebegin insert Sections 2079.7, and 2079.14
4to 2079.24, inclusive,end insert
the following terms have the following

P2    1(a) “Agent” means a person acting under provisions of Title 9
2(commencing with Section 2295) in a real property transaction,
3and includes a person who is licensed as a real estate broker under
4Chapter 3 (commencing with Section 10130) of Part 1 of Division
54 of the Business and Professions Code, and under whose license
6a listing is executed or an offer to purchase is obtained.

7(b) “Associate licensee” means a person who is licensed as a
8real estate broker or salesperson under Chapter 3 (commencing
9with Section 10130) of Part 1 of Division 4 of the Business and
10Professions Code and who is either licensed under a broker or has
11entered into a written contract with a broker to act as the broker’s
12agent in connection with acts requiring a real estate license and to
13function under the broker’s supervision in the capacity of an
14associate licensee.

15The agent in the real property transaction bears responsibility
16for his or her associate licensees who perform as agents of the
17agent. When an associate licensee owes a duty to any principal,
18or to any buyer or seller who is not a principal, in a real property
19transaction, that duty is equivalent to the duty owed to that party
20by the broker for whom the associate licensee functions.

21(c) “Buyer” means a transferee in a real property transaction,
22and includes a person who executes an offer to purchase real
23property from a seller through an agent, or who seeks the services
24of an agent in more than a casual, transitory, or preliminary manner,
25with the object of entering into a real property transaction. “Buyer”
26includes vendee or lessee.

27(d) “Commercial real property” means all real property in the
28state, except single-family residential real property, dwelling units
29made subject to Chapter 2 (commencing with Section 1940) of
30Title 5, mobilehomes, as defined in Section 798.3, or recreational
31vehicles, as defined in Section 799.29.

32(e) “Dual agent” means an agent acting, either directly or
33through an associate licensee, as agent for both the seller and the
34buyer in a real property transaction.

35(f) “Listing agreement” means a contract between an owner of
36real property and an agent, by which the agent has been authorized
37to sell the real property or to find or obtain a buyer.

38(g) “Listing agent” means a person who has obtained a listing
39of real property to act as an agent for compensation.

P3    1(h) “Listing price” is the amount expressed in dollars specified
2in the listing for which the seller is willing to sell the real property
3through the listing agent.

4(i) “Offering price” is the amount expressed in dollars specified
5 in an offer to purchase for which the buyer is willing to buy the
6real property.

7(j) “Offer to purchase” means a written contract executed by a
8buyer acting through a selling agent that becomes the contract for
9the sale of the real property upon acceptance by the seller.

10(k) “Real property” means any estate specified by subdivision
11(1) or (2) of Section 761 in property that constitutes or is improved
12with one to four dwelling units, any commercial real property, any
13leasehold in these types of property exceeding one year’s duration,
14and mobilehomes, when offered for sale or sold through an agent
15pursuant to the authority contained in Section 10131.6 of the
16Business and Professions Code.

17(l) “Real property transaction” means a transaction for the sale
18of real property in which an agent is employed by one or more of
19the principals to act in that transaction, and includes a listing or
20an offer to purchase.

21(m) “Sell,” “sale,” or “sold” refers to a transaction for the
22transfer of real property from the seller to the buyer, and includes
23exchanges of real property between the seller and buyer,
24transactions for the creation of a real property sales contract within
25the meaning of Section 2985, and transactions for the creation of
26a leasehold exceeding one year’s duration.

27(n) “Seller” means the transferor in a real property transaction,
28and includes an owner who lists real property with an agent,
29whether or not a transfer results, or who receives an offer to
30purchase real property of which he or she is the owner from an
31agent on behalf of another. “Seller” includes both a vendor and a

33(o) “Selling agent” means a listing agent who acts alone, or an
34agent who acts in cooperation with a listing agent, and who sells
35or finds and obtains a buyer for the real property, or an agent who
36locates property for a buyer or who finds a buyer for a property
37for which no listing exists and presents an offer to purchase to the

39(p) “Subagent” means a person to whom an agent delegates
40agency powers as provided in Article 5 (commencing with Section
P4    12349) of Chapter 1 of Title 9. However, “subagent” does not
2include an associate licensee who is acting under the supervision
3of an agent in a real property transaction.