AB 2018, as amended, Bocanegra. Real estate licensees: fictitious business names.
Existing law provides for the licensure and regulation of real estate brokers and real estate salespersons by the Bureau of Real Estate headed by the Real Estate Commissioner. Existing law requires an applicant who desires to have his or her license issued under a fictitious business name to file with his or her application a certified copy of his or her fictitious business name statement. Under existing law, any violation of these provisions is a misdemeanor.
This bill would authorize a responsible broker, as defined, by contract, to permit a salesperson to apply for a fictitious business name with the appropriate county and the bureau, to be identified with that responsible broker’s license number, and to maintain ownership of a fictitious business name, as defined. The bill would define a team name and provide, for purposes of the provisions described above, that a team name is not a fictitious business name if the name is used by two or more real estate licensees, the name includes a licensee’s surname in conjunction with the term “associates,” “group,” or “team,” and the name does not include any term or terms that imply or suggest the existence of a real estate entity independent of a responsible broker. The bill would require advertising that contains a team name, including print or electronic media and “for sale” signage, to include certain identifying information in a conspicuous manner.
This bill would provide that a violation of the provisions described above is not a misdemeanor.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 10159.5 of the Business and Professions
2Code is amended to read:
(a) Every person applying for a license under this
4chapter who desires to have the license issued under a fictitious
5business name shall file with his or her application a certified copy
6of his or her fictitious business name statement filed with the
7county clerk pursuant to Chapter 5 (commencing with Section
817900) of Part 3 of Division 7.
9(1) A responsible broker may, by contract, permit a salesperson
10to do all of the following:
11(A) File an application on behalf of a responsible broker with
12a county clerk to obtain a fictitious business name.
13(B) Deliver to the bureau an application, signed by the
14responsible broker, requesting the bureau’s approval to use a county
15approved fictitious business name that shall be identified with the
16broker’s license number.
17(C) Pay for any fees associated with filing an application with
18a county or the bureau to obtain or use a fictitious business name.
19(D) Maintain ownership of a fictitious business name, as defined
20in paragraph (2) of subdivision (a) of Section 10159.7, that may
21be used subject to the control of a responsible broker.
P3 1(b) (1) A salesperson using a fictitious business name authorized
2by subdivision (a), shall use that name only as permitted by his or
3her responsible broker.
4(2) This section does not change a real estate broker’s duties
5under this division to supervise a salesperson.
6(c) A person applying to a county for a fictitious business name
7pursuant to subdivision (a) may file his or her application in the
8county or counties where the fictitious business name will be used.
9(d) Marketing and solicitation materials, including business
10cards, print or electronic media and “for sale” signage, using a
11fictitious business name obtained in accordance with subdivision
12(a) shall include the responsible broker’s identity in a manner
13equally as prominent as the fictitious business name.
14(e) Notwithstanding subdivision (b) of Section 10140.6,
15advertising,
including print or electronic media and “for sale”
16signage, containing a fictitious business name obtained in
17accordance with subdivision (a) shall include the salesperson’s
18name and license number.
19(f) Notwithstanding Section 10185, a violation of this section
20is not a
misdemeanor.
Section 10159.6 is added to the Business and
22Professions Code, to read:
All of the following apply to use of a team name, as
24defined in paragraph (5) of subdivision (a) of Section 10159.7:
25(a) Notwithstanding subdivision (b) of Section 10140.6,
26advertising that contains a team name, including print or electronic
27media and “for sale” signage, shall include the licensee’s name
28and license number in all advertising, and shall be displayed in a
29conspicuous manner.
30(b) The responsible broker’s identity shall be displayed as
31prominently and conspicuously as the team name in all advertising.
32(c) The advertising material shall not
contain terms that imply
33the existence of a real estate entity independent of the responsible
34broker.
35(d) Notwithstanding Section 10185, a violation of this section
36is not a
misdemeanor.
Section 10159.7 is added to the Business and
38Professions Code, to read:
(a) For the purposes of this article, the following
40definitions shall apply:
P4 1(1) “Broker identity” means the name under which the broker
2operates or conducts business and may include a sole proprietorship
3or business entity name.
4(2) “Fictitious business name” means a professional identity or
5brand name under which activity requiring a real estate license is
6conducted and the use of which is subject to approval by the bureau
7pursuant to Section 10159.5.
8(3) “Ownership of a fictitious business name” means the right
9to use, renew, and control
the use of a fictitious business name
10obtained in accordance with Section 10159.5.
11(4) “Responsible broker” means the broker responsible for the
12exercise of control
and supervision of salespersons under Section
1310159.2, or a licensee subject to discipline under subdivision (h)
14of Section 10177 for failure to supervise activity requiring a real
15estate license. The supervision of a salesperson required under this
16part is limited to regulatory compliance and consumer protection.
17(5) “Team name” means a professional identity or brand name
18used by a salesperson, and one or more other real estate licensees,
19for the provision of real estate licensed services. Notwithstanding
20any other law, the use of a team name does not require that a
21separate license be issued for that name pursuant to Section
2210159.5. A team name does not constitute a fictitious business
23name for purposes of this partbegin insert ifend insert all of
the following apply:
24(A) The name is used by two or more real estate licensees who
25work together to provide licensed real estate services, or who
26represent themselves to the public as being a part of a team, group,
27or association to provide those services.
28(B) The name includes the surname of at least one of the licensee
29members of the team, group, or association in conjunction with
30the term “associates,” “group,” or “team.”
31(C) The name does not include any term or terms, such as “real
32estate broker,” “real estate brokerage,” “broker,” or “brokerage”
33or any other term that would lead a member of the public to believe
34that the team is offering real estate brokerage services, that imply
35or suggest the existence of a real
estate entity independent of a
36responsible broker.
37(b) Nothing in this section changes a real estate broker’s duties
38under this division to supervise a salesperson.
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