Bill Text: CA AB2884 | 2017-2018 | Regular Session | Introduced
Bill Title: Real estate.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2018-09-06 - Chaptered by Secretary of State - Chapter 285, Statutes of 2018. [AB2884 Detail]
Download: California-2017-AB2884-Introduced.html
Assembly Bill | No. 2884 |
Introduced by Assembly Member Irwin |
February 16, 2018 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 10001 of the Business and Professions Code is amended to read:10001.
SEC. 2.
Section 10015.1 is added to the Business and Professions Code, to read:10015.1.
“Responsible broker” means a real estate broker responsible for the exercise of control and supervision of real estate salespersons.SEC. 3.
Section 10015.2 is added to the Business and Professions Code, to read:10015.2.
“Manager” means a real estate licensee authorized to perform supervisorial services for a responsible broker.SEC. 4.
Section 10015.3 is added to the Business and Professions Code, to read:10015.3.
“Broker associate” means a broker retained by a responsible broker who has authority to provide services requiring a real estate license on behalf of the responsible broker.SEC. 5.
Section 10015.4 is added to the Business and Professions Code, to read:10015.4.
“Responsible broker identity” means the name under which the broker operates or conducts business and may include a sole proprietorship or business entity name.SEC. 6.
Section 10015.5 is added to the Business and Professions Code, to read:10015.5.
“Professional identity” includes “broker identity” and the identity under which the licensee is authorized to do business.SEC. 7.
Section 10016 of the Business and Professions Code is amended to read:10016.
“Real estate salesperson” means a natural person licensed as a salesperson under Chapter 3 of thisSEC. 8.
Section 10018.01 is added to the Business and Professions Code, to read:10018.01.
“Retained” means the relationship between a broker and a licensee who is either an independent contractor affiliated with, or an employee of, a broker to perform activities that require a license and are performed under a broker’s supervision.SEC. 9.
Section 10018.02 is added to the Business and Professions Code, to read:10018.02.
“Seller” means a transferor in a real property transaction and includes an owner who lists real property with a broker, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from a licensee on behalf of another. “Seller” includes both a vendor and lessor of real property.SEC. 10.
Section 10018.03 is added to the Business and Professions Code, to read:10018.03.
“Listing licensee” means a licensee who provides services requiring a real estate license for a seller pursuant to a listing agreement.SEC. 11.
Section 10018.04 is added to the Business and Professions Code, to read:10018.04.
“Seller’s licensee” means a licensee who provides services requiring a real estate license for a seller.SEC. 12.
Section 10018.05 is added to the Business and Professions Code, to read:10018.05.
“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 a licensee, or who seeks the services of a licensee in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. “Buyer” includes a purchaser, vendee, or lessee of real property.SEC. 13.
Section 10018.06 is added to the Business and Professions Code, to read:10018.06.
“Buyer’s licensee” means a licensee who provides services requiring a real estate license for a buyer.SEC. 14.
Section 10018.07 is added to the Business and Professions Code, to read:10018.07.
“Real property” means any estate specified in (1) or (2) of Section 761 of the Civil Code in property, and includes (a) residential property, (b) multiunit residential property with more than four dwelling units, (c) commercial real property, (d) vacant land, (e) a ground lease coupled with improvements, or (f) a manufactured home as defined in Section 18007 of the Health and Safety Code or a mobilehome as defined in Section 18008 of the Health and Safety Code.SEC. 15.
Section 10018.08 is added to the Business and Professions Code, to read:10018.08.
“Residential property” or “residential real property” means: (a) real property improved with one to four dwelling units, including any leasehold exceeding one year’s duration of such, (b) a unit in a residential stock cooperative, condominium, or planned unit development, or (c) a mobilehome when offered for sale or sold through a real estate broker pursuant to Section 10131.6.SEC. 16.
Section 10018.09 is added to the Business and Professions Code, to read:10018.09.
“Commercial real property” means all real property in the state, except (a) residential real property, (b) dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5 of Part 4 of Division 3 of the Civil Code, (c) a mobilehome as defined in Section 798.3 of the Civil Code, (d) vacant land, or (e) a recreational vehicle as defined in Section 799.29 of the Civil Code.SEC. 17.
Section 10018.10 is added to the Business and Professions Code, to read:10018.10.
“Sell,” “sale,” or “sold” means a transaction for the transfer of real property from a seller to a buyer, and includes (a) an exchange of real property between a seller and a buyer, (b) transactions for the creation of a real property sales contract within the meaning of Section 2985 of the Civil Code, and (c) a leasehold exceeding one year’s duration.SEC. 18.
Section 10018.11 is added to the Business and Professions Code, to read:10018.11.
“Dual broker” means (a) a broker who individually provides services for both a seller and a buyer in the same transaction, (b) a responsible broker who has a dual licensee under his or her supervision, or (c) a responsible broker who has a seller’s licensee and a buyer’s licensee under his or her supervision in the same transaction.SEC. 19.
Section 10018.12 is added to the Business and Professions Code, to read:10018.12.
“Dual licensee” means a real estate salesperson or broker associate who individually provides services requiring a real estate license for both a seller and a buyer at the same time in the same transaction.SEC. 20.
Section 10018.13 is added to the Business and Professions Code, to read:10018.13.
“Appraiser” means a person licensed or certified under Part 3 (commencing with Section 11300).SEC. 21.
Section 10018.14 is added to the Business and Professions Code, to read:10018.14.
“Listing agreement” means a written contract between a seller of real property or a business opportunity and a real estate broker by which the broker has been authorized to sell the real property or find or obtain a buyer, including rendering other related real estate services to the seller pursuant to the terms of the agreement.SEC. 22.
Section 10018.15 is added to the Business and Professions Code, to read:10018.15.
“Exclusive right to sell listing” means a listing agreement whereby the owner grants to a broker, for a specified period of time, the exclusive right to sell, find, or obtain a buyer for the real property, and the broker is entitled to the agreed compensation if during that period of time the real property is sold, no matter who effected the sale, or when the listing broker receives and presents to the owner any enforceable offer from a ready, able, and willing buyer on terms that are authorized by the listing agreement or accepted by the owner. The “exclusive right to sell listing” may provide for compensation to the listing broker if the property is sold within a specified period after termination of the listing agreement.SEC. 23.
Section 10018.16 is added to the Business and Professions Code, to read:10018.16.
“Seller reserved listing” has the same meaning as “exclusive right to sell listing” in Section 10018.15, except that the owner reserves the right to sell directly but not through any other agent and, in that event, without obligation to pay compensation to the agent.SEC. 24.
Section 10018.17 is added to the Business and Professions Code, to read:10018.17.
“Open listing” means a listing agreement which grants no exclusive rights or priorities to the listing broker, and the agreed commission is payable to the broker only if the listing broker obtains and presents to the owner an enforceable offer from a ready, able, and willing buyer on the terms authorized by the listing agreement, which is accepted by the owner, before the property is otherwise sold either through another broker or by the owner directly and before the listing agreement expires by its terms or is revoked.SEC. 25.
Section 10026 of the Business and Professions Code is amended to read:10026.
(a) The term “advance fee,” as used in this part, is a fee, regardless of the form, that is claimed, demanded, charged, received, or collected by a licensee for services requiring a license, or for aSEC. 26.
Section 10027 of the Business and Professions Code is amended to read:10027.
The term(c)An agreement by which a person who is engaged in the business of promoting the sale or lease of business
opportunities or real estate agrees to render to an owner or lessee of such property any services, to promote the sale or lease of said property.
(d)An agreement by which a person who is engaged in the business of finding, locating or promoting the sale or lease of business opportunities or real estate, agrees to circularize, notify or refer real estate brokers or salesperson to said property which is offered for sale or lease.
SEC. 27.
Section 10050 of the Business and Professions Code, as added by Section 10 of Chapter 828 of the Statutes of 2017, is amended to read:10050.
(a) (1) There is in the Business, Consumer Services, and Housing Agency a Department of Real Estate, the chief officer of which department is named the Real Estate Commissioner.SEC. 28.
Section 10131 of the Business and Professions Code is amended to read:10131.
A real estate broker within the meaning of this part 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 of the following acts for another or others:SEC. 29.
Section 10132 of the Business and Professions Code is repealed.A real estate salesperson within the meaning of this part is a natural person who, for a compensation or in expectation of a compensation, is employed by a licensed real estate broker to do one or more of the acts set forth in Sections 10131, 10131.1, 10131.2, 10131.3, 10131.4, and 10131.6.
SEC. 30.
Section 10133.1 of the Business and Professions Code, as added by Section 2 of Chapter 475 of the Statutes of 2017, is amended to read:10133.1.
(a) Subdivisions (d) and (e) of Section 10131, Section 10131.1, Article 5 (commencing with Section 10230), and Article 7 (commencing with Section 10240) of this code and Section 1695.13 of the Civil Code do not apply to any of the following:This
This
SEC. 31.
Section 10137 of the Business and Professions Code is amended to read:10137.
It is unlawful for any licensed real estate broker toSEC. 32.
Section 10140.6 of the Business and Professions Code is amended to read:10140.6.
(a) A real estate licensee shall not publish, circulate, distribute, or cause to be published, circulated, or distributed in any newspaper or periodical, or by mail, any matter pertaining to any activity for which a real estate license is required that does not contain a designation disclosing that he or she is performing acts for which a real estate license is required.SEC. 33.
Section 10142 of the Business and Professions Code is amended to read:10142.
When a licensee prepares or has prepared an agreement pursuant to Section 10032 authorizing orSEC. 34.
Section 10143.5 of the Business and Professions Code is amended to read:10143.5.
Any real estate broker who assists another or others, or whose real estate salespersons assist another or others, for a compensation, in filing an application for the purchase or lease of, or in locating or entering upon, lands owned by the state or federal government shall report to the commissioner the names and addresses of all personsSEC. 35.
Section 10144 of the Business and Professions Code is amended to read:10144.
The commissioner may prescribe by regulation the information which shall be contained in contracts or other agreements by a real estateSEC. 36.
Section 10158 of the Business and Professions Code is amended to read:10158.
When a real estate license is issued to a corporation, if it desires any of its officers other than the officer designated by it pursuant to Section 10211, to act under its license as a real estate broker, it shall procure an additional license toSEC. 37.
Section 10159 of the Business and Professions Code is amended to read:10159.
Each officer of a corporation through whom it is licensed to act as a real estate brokerSEC. 38.
Section 10159.6 of the Business and Professions Code is amended to read:10159.6.
All of the following apply to use of a team name, as defined in paragraphSEC. 39.
Section 10159.7 of the Business and Professions Code is amended to read:10159.7.
(a) For the purposes of this article, the following definitions shall apply:(1)“Responsible broker’s identity” means the name under which the responsible broker is currently licensed by the bureau and conducts business in general or is a substantial division of the real estate firm, or both the name and the associated license identification number. Responsible broker’s identity does not include a fictitious business name obtained pursuant to paragraph (2)
of subdivision (a) of Section 10159.5 or the use of a team name pursuant to Section 10159.6.
(2)
(3)
(4)“Responsible broker” means the broker responsible for the exercise of control and supervision of salespersons under Section 10159.2, or a licensee subject to discipline under subdivision (h) of Section 10177 for failure to supervise
activity requiring a real estate license. The supervision of a salesperson required under this part or any other law is limited to regulatory compliance and consumer protection.
(5)
SEC. 40.
Section 10160 of the Business and Professions Code is repealed.The real estate salesman’s license shall remain in the possession of the licensed real estate broker employer until canceled or until the salesman leaves the employ of the broker, and the broker shall make his license and the licenses of his salesman available for inspection by the commissioner or his designated representative.
SEC. 41.
Section 10161.8 of the Business and Professions Code is repealed.(a)Whenever a real estate salesperson or broker acting as a salesperson enters the employ of a real estate broker, the responsible broker shall immediately notify the commissioner thereof in writing.
(b)Whenever employment of a real estate salesperson or broker acting as a salesperson is terminated, the responsible broker shall immediately notify the commissioner of that termination in writing.
(c)Whenever a licensee acquires a business address different from the address shown on his or her license the licensee shall mark out the former address on the face of the license and type or write the new main office
address in ink on the reverse side, and date and initial the same.
(d)Whenever a real estate salesperson enters the employ of a new real estate broker the salesperson shall mark out the name of his or her former broker on the face of the license and type or write the name of the new employing broker in ink on the reverse side, and date and initial the same.
(e)This section shall become operative January 1, 2018.
SEC. 42.
Section 10161.8 is added to the Business and Professions Code, to read:10161.8.
(a) The commissioner shall specify the manner in which a responsible broker shall provide notice to the commissioner of an affiliation with a real estate licensee or by which a real estate licensee shall provide notice of a change of address or affiliation.SEC. 43.
Section 10164 of the Business and Professions Code is amended to read:10164.
(a)(f)This section shall become operative on July 1, 2012.
SEC. 44.
Section 10166.03 of the Business and Professions Code is amended to read:10166.03.
(a) A loan processor or underwriter who does not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual can or will perform any of the activities of a mortgage loan originator shall not be required to obtain a license endorsement as a mortgage loan originator.SEC. 45.
Section 10167 of the Business and Professions Code is amended to read:10167.
The definitions used in this section shall govern the construction and terms as used in this article:SEC. 46.
Section 10176 of the Business and Professions Code is amended to read:10176.
The commissioner may, upon his or her own motion, and shall, upon the verified complaint in writing of any person, investigate the actions of any person engaged in the business or acting in the capacity of a real estate licensee within this state, and he or she may temporarily suspend or permanently revoke a real estate license at any time where the licensee, while a real estate licensee, in performing or attempting to perform any of the acts within the scope of this chapter has been guilty of any of the following:SEC. 47.
Section 10177 of the Business and Professions Code is amended to read:10177.
The commissioner may suspend or revoke the license of a real estate licensee, delay the renewal of a license of a real estate licensee, or deny the issuance of a license to an applicant, who has done any of the following, or may suspend or revoke the license of a corporation, delay the renewal of a license of a corporation, or deny the issuance of a license to a corporation, if an officer, director, or person owning or controlling 10 percent or more of the corporation’s stock has done any of the following:SEC. 48.
Section 10178 of the Business and Professions Code is amended to read:10178.
When any real estate salesperson is discharged by his or herSEC. 49.
Section 10179 of the Business and Professions Code is amended to read:10179.
No violation of any of the provisions of this part relating to real estate or of Chapter 1 (commencing with Section 11000) of Part 2 of this division by any real estate salesperson or employee of any licensed real estate broker shall cause the revocation or suspension of the license of the employer of the salesperson or employee unless it appears upon a hearing by the commissioner that the employer had guilty knowledge ofSEC. 50.
Section 10186.2 of the Business and Professions Code is amended to read:10186.2.
(a) (1) A licensee shall report any of the following to theSEC. 51.
Section 10232.3 of the Business and Professions Code is amended to read:10232.3.
(a) Any transaction that involves the sale of or offer to sell a note secured directly by an interest in one or more parcels of real property or the sale of an undivided interest in a note secured directly by one or more parcels of real property shall adhere to all of the following:(A) | Single-family residence, owner occupied
........................
| 80% |
(B) | Single-family residence, not owner occupied
........................
| 75% |
(C) | Commercial properties and income-producing properties not | |
described in (B) or (E) ........................ | 65% | |
(D) | Single-family residentially zoned lot or parcel that has installed offsite
improvements including drainage, curbs, gutters, sidewalks, paved roads, and utilities as mandated by the political subdivision having jurisdiction over the lot or parcel
........................
| 65% |
(E) | Land that produces income from crops, timber, or minerals
........................
| 60% |
(F) | Land that is not income producing but has been zoned for (and if required, approved for subdivision as) commercial or residential development
........................
| 50% |
(G) | Other real property
........................
| 35% |
“Transaction Identifier: | |||
Name of Purchaser: | Date: | ||
Check either one of the following, if true: | |||
( )My investment in the transaction does not exceed 10% of my net worth, | |||
exclusive of home, furnishings, and automobiles. | |||
( )My investment in the transaction does not exceed 10% of my adjusted | |||
gross income for federal income tax purposes for my last tax year or, | |||
in the
alternative, as estimated for the current year. | |||
Signature” |
SEC. 52.
Section 10238 of the Business and Professions Code is amended to read:10238.
(a) A notice in the following form and containing the following information shall be filed with the commissioner within 30 days after the first transaction and within 30 days of any material change in the information required in the notice:TO: | Real Estate Commissioner Mortgage Loan Section 1651 Exposition Boulevard Sacramento, CA 95815 | |
This notice is filed pursuant to Sections 10237 and 10238 of the Business and Professions Code. | ||
( ) Original Notice( ) Amended Notice | ||
1. | Name of the Responsible Broker conducting transaction under Section 10237: | |
2. | Broker license identification number: | |
3. | List the month the fiscal year ends: | |
4. | Broker’s telephone number: | |
5. | Firm name (if different from “1”): | |
6. | Street address (main location): | |
# and StreetCityStateZIP Code
_____
| ||
7. | Mailing address (if different from “6”): | |
8. | Servicing agent: Identify by name, address, and telephone number the person or entity who will act as the servicing agent in transactions pursuant to Section 10237 (including the undersigned Broker if that is the case): | |
9. | Total number of multilender notes arranged: | |
10. | Total number of interests sold to investors on the multilender’s notes: ______ | |
11. | Inspection of trust account (before answering this question, review the provisions of paragraph (3) of subdivision (k) of Section 10238). | |
CHECK ONLY ONE OF THE FOLLOWING: | ||
( ) | The undersigned Broker is (or expects to be) required to file reports of inspection of its trust account(s) with the Real Estate Commissioner pursuant to paragraph (3) of subdivision (k) of Section 10238. | |
Amount of Multilender Payments Collected Last Fiscal Quarter: | ||
Total Number of Investors Due Payments Last Fiscal Quarter: | ||
( ) | The undersigned Broker is NOT (or does NOT expect to be) required to file reports of inspection of its trust account(s) with the Real Estate Commissioner pursuant to paragraph (3) of subdivision (k) of Section 10238. | |
12. | Signature. The contents of this notice are true and correct. | |
Date | Type Name of Broker | |
Signature of Corporate Broker | ||
Type Name of Person(s) Signing This Notice |
Transaction Identifier: | |
Name of Purchaser: Date: | |
Check either one of the following, if true: | |
( ) | My investment in the transaction
does not exceed 10% of my net worth, exclusive of home, furnishings, and automobiles. |
( ) | My investment in the transaction does not exceed 10% of my adjusted gross income for federal income tax purposes for my last tax year or, in the alternative, as estimated for the current year. |
Signature |
(A) | Single-family residence, owner occupied
........................
| 80% |
(B) | Single-family residence, not owner occupied
........................
| 75% |
(C) | Commercial properties and income-producing properties not described in (B) or (E)
........................
| 65% |
(D) | Single-family residentially zoned lot or parcel that has installed offsite improvements including drainage, curbs, gutters, sidewalks, paved roads, and utilities as mandated by the political subdivision having jurisdiction over the lot or parcel
........................
| 65% |
(E) | Land that produces income from crops, timber, or minerals
........................
| 60% |
(F) | Land that is not income producing but has been zoned for (and if required, approved for subdivision as) commercial or residential development
........................
| 50% |
(G) | Other real property
........................
| 35% |
(i)