Amended in Assembly June 10, 2014

Senate Bill No. 1171

Introduced by Senator Hueso

February 20, 2014

An act to amend Section 2079.13 of, and to amend the heading of Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3 of, the Civil Code, relating to real property transactions.

LEGISLATIVE COUNSEL’S DIGEST

SB 1171, as amended, Hueso. Real property transactions: agents: obligations.

Existing law requires listing and selling agents, as defined, to provide the seller and buyer in a residential real property transaction begin insert , including a leasehold interest, end insert with a disclosure form, as prescribed, containing general information on real estate agency relationships. Existing law also requires the listing or selling agent to disclose to the buyer and seller whether he or she is acting as the buyer’s agent exclusively, the seller’s agent exclusively, or as a dual agent representing both the buyer and the seller.

This bill would extend these disclosure requirements to include transactions involving commercial property, as defined begin insert , including a leasehold interest 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:

SECTION 1.  

The heading of Article 2 (commencing with
Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3 of the Civil Code is amended to read:

 

Article 2.  Duty to Prospective Purchaser of Real Property

 

SEC. 2.  

Section 2079.13 of the Civil Code is amended to read:

2079.13.  

As used in Sections 2079.14 to 2079.24, inclusive,
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) “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.

(e) “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.

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

(g) “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.

(h) “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.

(i) “Offer to purchase” means a written contract executed by a
buyer acting through a selling agent begin delete which end delete begin insert that end insert becomes the
contract for the sale of the real property upon acceptance by the
seller.

(j) “Real property” means any estate specified by subdivision
(1) or (2) of Section 761 in property begin delete which end delete begin insert that end insert constitutes or is
improved with one to four dwelling units, any commercial property
specified in subdivision (a) or (b) of Section 1101.3, any leasehold
in begin delete this type end delete begin insert these types end insert 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.

(k) “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.

(l) “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.

(m) “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.

(n) “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.

(o) “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.