SB 596, as introduced, Anderson. Real estate.
The Real Estate Law provides for the regulation and licensure of real estate brokers and salespersons by the Real Estate Commissioner. As used in the Real Estate Law, the term “advance fee” is defined as a fee regardless of the form, that is claimed, demanded, charged, received, or collected by a licensee for services requiring a license, or for a listing, as defined, before fully completing the service the licensee contracted to perform or represented would be performed, with certain exceptions.
This bill would make nonsubstantive changes to these provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 10026 of the Business and Professions
2Code is amended to read:
(a) The term “advance fee,” as used in this part, is a
4fee, regardless of the form, that is claimed, demanded, charged,
5received, or collected by a licensee for services requiring a license,
6or for a listing, as that term is defined in Section 10027, before
7fully completing the service the licensee contracted to perform or
8represented would be performed. Neither an advance fee nor the
9services to be performed shall be separated or divided into
P2 1components for the purpose of avoiding the application of this
2division.
3(b) For the purposes of this section, the term “advance fee” does
4not includebegin insert any of the followingend insert:
5(1) “Security” as that term is used in Section 1950.5 of the Civil
6Code.
7(2) A “screening fee” as that term is used in Section 1950.6 of
8the Civil Code.
9(3) A fee that is claimed, demanded, charged, received, or
10collected for the purpose of advertising the sale, lease, or exchange
11of real estate, or of a business opportunity, in a newspaper of
12general circulation, any other written publication, or through
13electronic media comparable to any type of written publication,
14provided that the electronic media or the publication is not under
15the control or ownership of the broker.
16(4) A fee earned for a specific service under a “limited service”
17contract. For purposes of this section, a “limited service” contract
18is a written agreement for real estate services described in
19subdivision (a), (b), or (c) of Section 10131, and pursuant to which
20such services are promoted, advertised, or presented as stand-alone
21services, to
be performed on a task-by-task basis, and for which
22compensation is received as each separate, contracted-for task is
23completed. To qualify for this exclusion, all services performed
24pursuant to the contract must be described in subdivision (a), (b),
25or (c) of Section 10131.
26(c) A contract between a real estate broker and a principal that
27requires payment of a commission to the broker after the contract
28is fully performed does not represent an agreement for an advance
29fee.
30(d) This section does not exempt from regulation the charging
31or collecting of a fee under Section 1950.5 or 1950.6 of the Civil
32Code, but instead regulates fees that are not subject to those
33sections.
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