AB 2397, as introduced, Rodriguez. Real estate brokers: licensure requirements: exemption.
Existing law, the Real Estate Law, provides for the licensure and regulation of real estate brokers by the Real Estate Commissioner. Under existing law, a real estate broker is a person who, for a compensation or in expectation of a compensation, regardless of the form or time of payment, does or negotiates to do one or more specified acts for another or others. Existing law exempts these acts from real estate licensure requirements if performed by specified persons under specified circumstances.
This bill would also exempt those acts from real estate licensure requirements if performed by any agent, employee, or independent contractor of an individual, entity that provides housing services and the individual or entity’s sole activities related to real estate involve ownership or management of residential property owned or controlled by the individual or entity, and would prohibit this exemption from applying under specified circumstances.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 10133 of the Business and Professions
2Code is amended to read:
(a) The acts described in Section 10131 are not acts
4for which a real estate license is required if performed by:
5(1) A regular officer of a corporation or a general partner of a
6partnership with respect to real property owned or leased by the
7corporation or partnership, respectively, or in connection with the
8proposed purchase or leasing of real property by the corporation
9or partnership, respectively, if the acts are not performed by the
10officer or partner in expectation of special compensation.
11(2) A person holding a duly executed power of attorney from
12the owner of the real property with respect to which the acts are
13performed.
14(3) An attorney at law in rendering legal services to a client.
15(4) A receiver, trustee in bankruptcy or other person acting
16under order of a court of competent jurisdiction.
17(5) A trustee for the beneficiary of a deed of trust when selling
18under authority of that deed of trust.
19(6) Any individual, or agent, employee, or independent
20contractor that provides housing services and the individual or
21entity’s sole activities related to real estate involve ownership or
22management of residential property owned or controlled by the
23individual or entity. This exemption shall not apply if and to the
24extent an agent, employee, or independent contractor paid a
25commission or other
compensation strictly on a transactional basis
26is employed to make sales, exchanges, or leases to or with
27customers in the ordinary course of the entity’s business of selling,
28exchanging, or leasing real property to the public,
29(b) The exemptions in subdivision (a) are not applicable to a
30person who uses or attempts to use them for the purpose of evading
31the provisions of this part.
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