Bill Text: CA SB1171 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Real property transactions: agents: obligations.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-08-15 - Chaptered by Secretary of State. Chapter 200, Statutes of 2014. [SB1171 Detail]

Download: California-2013-SB1171-Amended.html

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BILL NUMBER: SB 1171	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 24, 2014
	AMENDED IN ASSEMBLY  JUNE 10, 2014

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, including a leasehold interest, 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  real  property, as
defined, including a leasehold interest.
   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) "Commercial real property" means all real property in the
state, except single-family residential real property, dwelling units
made subject to Chapter 2 (commencing with Section 1940) of Title 5,
mobilehomes, as defined in Section 798.3, or recreational vehicles,
as defined in Section 799.29.  
   (d) 
    (e)  "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) 
    (f)  "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) 
    (g)  "Listing agent" means a person who has obtained a
listing of real property to act as an agent for compensation.

   (g) 
    (h)  "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) 
    (   i)  "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) 
    (j)  "Offer to purchase" means a written contract
executed by a buyer acting through a selling agent that becomes the
contract for the sale of the real property upon acceptance by the
seller. 
   (j) 
    (k)  "Real property" means any estate specified by
subdivision (1) or (2) of Section 761 in property that constitutes or
is improved with one to four dwelling units, any commercial 
property specified in subdivision (a) or (b) of Section 1101.3,
  real property,  any leasehold in these types 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) 
    (l)  "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  )
    (m)  "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) 
    (   n)  "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) 
    (o)  "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) 
    (   p)  "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.