Bill Text: CA AB892 | 2019-2020 | Regular Session | Amended

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

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Bill Title: Transfers of real property.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2019-09-20 - Chaptered by Secretary of State - Chapter 310, Statutes of 2019. [AB892 Detail]

Download: California-2019-AB892-Amended.html

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Amended  IN  Assembly  March 21, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 892

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Introduced by Assembly Member Holden

February 20, 2019

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An act to amend Section 1087 of Sections 1102, 1102.2, 1102.3, 1102.4, 1102.155, 2079.13, and 2079.14 of, and to add Section 2079.1.5 to, the Civil Code, relating to real property.

LEGISLATIVE COUNSEL'S DIGEST

AB 892, as amended, Holden. Transfers of real property.

The

(1) The Real Estate Law establishes, within the Business, Consumer Services, and Housing Agency, the Department of Real Estate for the licensure and regulation of real estate brokers and salespersons. Existing law provides for the licensure of real estate appraisers by the Bureau of Real Estate Appraisers.

Existing civil law governing agency listings for the transfer of certain property prohibits a listing from being placed in a multiple listing service (MLS), as defined, unless authorized or directed by the seller in the listing.

Existing law establishes specific real estate disclosure requirements applicable to the transfer of residential real property. Existing law, for purposes of these provisions, specifies, by reference, that certain definitions contained in the Real Estate Law apply.

This bill would place those referenced definitions directly into the real estate disclosure provisions, and would make related technical and conforming changes.

(2) Under existing law governing real estate disclosure requirements for residential property, the seller, seller’s agent, or buyer’s agent is not liable for an error, inaccuracy, or omission of delivered information that was not within the personal knowledge of the seller or that listing or buyer’s agent, was based on information provided by other agencies or persons, and if ordinary care was exercised in obtaining and transmitting it. Existing law specifies that the delivery of a report or opinion prepared by specified experts dealing with matters within their scope of expertise is sufficient to comply with the above exemption from liability if the information is provided to the prospective buyer per request. Under existing law, if such a statement is furnished, the expert is not responsible for any items of information or parts thereof, other than those expressly set forth in the statement.

This bill would revise the above provision regarding the expert’s responsibility to instead specify that the expert is not responsible for any items of information or parts thereof other than those expressly set forth in the statement unless that informe=" text-transform: lowercase">MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 1102 of the Civil Code is amended to read:

1102.

 (a) Except as provided in Section 1102.2, this article applies to any transfer by sale, exchange, real property sales contract as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements of any single-family residential property.

(b) For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply. following definitions apply:

(1) “Broker,” when used without modification, means a person licensed as a broker under any of the provisions of the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code).

(2) “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.

(3) “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, whether or not a transfer results, 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.

(4) “Buyer’s agent” means an agent who provides services requiring a real estate license for or on behalf of a buyer.

(5) “Licensee,” when used without modification, means a person, whether broker or salesperson, licensed under any provision of the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code).

(6) “Listing” includes, but is not limited to:

(A) The name or a list of the names, of the owners, landlords, exchangers, or lessors, or the location or locations, of property, or of an interest in property, offered for rent, sale, lease, or exchange, which may include a listing agreement.

(B) The name, or a list of the names, or the location or locations at which prospective or potential purchasers, buyers, lessees, tenants, or exchangers of property may be found or contacted, which may include a listing agreement.

(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 the property any services, to promote the sale or lease of that 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 salespersons to the property that is offered for sale or lease.

(7) “Listing agent” means a licensee who provides services requiring a real estate license for or on behalf of a seller pursuant to a listing agreement. “Listing agent” includes a seller’s agent.

(8) “Person” includes corporation, company, and firm.

(9) “Real estate broker” means a person licensed as a broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code.

(10) “Real estate licensee” means a person, whether a broker or salesperson, licensed under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code.

(11) “Real estate salesperson” or “salesperson” means a natural person licensed as a salesperson under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and who, for a compensation or in expectation of a compensation, is retained by a 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 of the Business and Professions Code.

(12) “Real property” means any estate specified in (1) or (2) of Section 761 of this code in property, and includes any of the following:

(A) Single-family 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.

(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.

(13) “Real property sales contract” means an agreement in which one party agrees to convey the title to real property to another party upon the satisfaction of specified conditions set forth in the contract and which does not require conveyance of the title within one year from the date of formation of the contract.

(14) “Responsible broker” means the real estate broker responsible for the exercise of control and supervision of real estate salespersons under Section 10159.2 of the Business and Professions Code, or a licensee subject to discipline under subdivision (h) of Section 10177 of the Business and Professions Code 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.

(15) “Retained” or “retains” 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.

(16) “Salesperson,” when used without modification, means a person licensed as a salesperson under any of the provisions of this article. Whenever the word salesman is used in this article, or in the rules and regulations of the commissioner, it means salesperson.

(17) “Sell,” “sale,” or “sold” means, except as provided in Section 10239.2 of the Business and Professions Code, 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) a real property sales contract within the meaning of Section 2985, and (C) a leasehold exceeding one year’s duration.

(18) “Seller” means a transferor in a real property transaction, and includes an owner who lists real property with a licensee, whether or not a transfer results, or who receives an offer to purchase real property of which that person is the owner from a licensee on behalf of another. “Seller” includes both a vendor and lessor of real property.

(19) “Seller’s agent” means a licensee who provides services requiring a real estate license for or on behalf of a seller. A seller’s agent may or may not be a listing agent.

(20) “Single-family residential property” or “single-family residential real property” means any of the following:

(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.

(C) A mobilehome or manufactured home when offered for sale or sold through a real estate broker pursuant to Section 10131.6 of the Busness and Professions Code.

(21) “Trust deed” or “deed of trust” as used in this article includes “mortgage.”

(c) Any waiver of the requirements of this article is void as against public policy.

SEC. 2.

 Section 1102.2 of the Civil Code is amended to read:

1102.2.

 This article does not apply to the following:

(a) Sales or transfers that are required to be preceded by the furnishing to a prospective buyer of a copy of a public report pursuant to Section 11018.1 of the Business and Professions Code and transfers that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code.

(b) Sales or transfers pursuant to court order, including, but not limited to, sales ordered by a probate court in the administration of an estate, sales pursuant to a writ of execution, sales by any foreclosure sale, transfers by a trustee in bankruptcy, sales by eminent domain, and sales resulting from a decree for specific performance.

(c) Sales or transfers to a mortgagee by a mortgagor or successor in interest who is in default, sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, any foreclosure sale after default, any foreclosure sale after default in an obligation secured by a mortgage, a sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure, sales to the legal owner or lienholder of a manufactured home or mobilehome by a registered owner or successor in interest who is in default, or sales by reason of any foreclosure of a security interest in a manufactured home or mobilehome.

(d) Sales or transfers by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedent’s estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and he or she is a former owner of the property or was an occupant in possession of the property within the preceding year.

(e) Sales or transfers from one coowner to one or more other coowners.

(f) Sales or transfers made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferors.

(g) Sales or transfers between spouses resulting from a judgment of dissolution of marriage or of legal separation or from a property settlement agreement incidental to that judgment.

(h) Sales or transfers by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.

(i) Sales or transfers under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.

(j) Sales or transfers or exchanges to or from any governmental entity.

(k) Sales or transfers of any portion of a property not constituting single-family residential property.

(l) Notwithstanding the definition of sale in Section 10018.5 10018.10 of the Business and Professions Code and Section 2079.13, the terms “sale” and “transfer,” as they are used in this section, shall have their commonly understood meanings. The changes made to this section by Assembly Bill 1289 of the 2017–18 Legislative Session shall not be interpreted to change the application of the law as it read prior to January 1, 2019.

SEC. 3.

 Section 1102.3 of the Civil Code is amended to read:

1102.3.

 The seller of any single-family real property subject to this article shall deliver to the prospective buyer the completed written statement required by this article, as follows:

(a) In the case of a sale, as soon as practicable before transfer of title.

(b) In the case of sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before execution of the contract. For the purpose of this subdivision, “execution” means the making or acceptance of an offer.

(c) With respect to any sale subject to subdivision (a) or (b), the seller shall indicate compliance with this article on the real property sales contract, the lease, or any addendum attached thereto or on a separate document.

If any disclosure, or any material amendment of any disclosure, required to be made by this article, is delivered after the execution of an offer to purchase, the prospective buyer shall have three days after delivery in person, five days after delivery by deposit in the mail, or five days after delivery of an electronic record in transactions where the parties have agreed to conduct the transaction by electronic means, pursuant to provisions of the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3), to terminate his or her the offer by delivery of a written notice of termination to the seller or the seller’s agent. The period of time the prospective buyer has in which to terminate his or her the offer commences when Sections I, II, and III III, as applicable, in the form described in Section 1102.6 are completed and delivered to the buyer or buyer’s agent. A real estate agent may complete his or her their own portion of the required disclosure by providing all of the information on the agent’s inspection disclosure set forth in Section 1102.6.

SEC. 4.

 Section 1102.4 of the Civil Code is amended to read:

1102.4.

 (a) Neither the seller nor any seller’s agent or buyer’s agent shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or that listing or buyer’s agent, was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting it.

(b) The delivery of any information required to be disclosed by this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller or any listing or buyer’s agent of any further duty under this article with respect to that item of information.

(c) The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, structural pest control operator, contractor, a C-39 roofing contractor conducting a roof inspection pursuant to subdivision (d) of Section 7197 of the Business and Professions Code, or other expert, dealing with matters within the scope of the professional’s license or expertise, shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral. In responding to such a request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1102.6 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Where If such a statement is furnished, the expert shall not be responsible for any items of information or parts thereof, other than those expressly set forth in the statement. statement, unless that information or parts thereof affects the value or desirability of the property.

SEC. 5.

 Section 1102.155 of the Civil Code is amended to read:

1102.155.

 (a) (1)The seller of single-family residential real property subject to this article shall disclose, in writing, that Section 1101.4 requires that California single-family residences be equipped with water-conserving plumbing fixtures on or after January 1, 2017, and fixtures. The seller shall also disclose whether that seller is aware that the property includes any noncompliant plumbing fixtures as defined in subdivision (c) of Section 1101.3.

(2)

(b) The seller shall affirm that this representation is that of the seller and not a representation of any agent, and that this disclosure is not intended to be part of any contract between the buyer and the seller. The seller shall further affirm that this disclosure is not a warranty of any kind by the seller or any agent representing any principal in the transaction and is not a substitute for any inspections or warranties that any principal may wish to obtain.

(b)This section shall become operative on January 1, 2017.

SEC. 6.

 Section 2079.1.5 is added to the Civil Code, to read:

2079.1.5.

 For purposes of this article, the following definitions apply:

(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) “Broker,” when used without modification, means a person licensed as a broker under any of the provisions of the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code).

(c) “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.

(d) “Business opportunity” means the sale or lease of the business and goodwill of an existing business enterprise or opportunity.

(e) “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, whether or not a transfer results, 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.

(f) “Buyer’s agent” means an agent who provides services requiring a real estate license for or on behalf of a buyer.

(g) “Commercial real property” means all real property except any of the following:

(1) Single-family residential real property.

(2) Dwelling units made subject to Chapter 2 (commencing with Section 1940).

(3) A mobilehome as defined in Section 798.3.

(4) Vacant land.

(5) A recreational vehicle as defined in Section 799.29.

(h) “Dual agent” means an agent acting, either directly or through a salesperson or broker associate, as agent for both the seller and the buyer in a real property transaction.

(i) “Licensee,” when used without modification, means a person, whether broker or salesperson, licensed under any provision of the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code).

(j) “Listing” includes, but is not limited to:

(1) The name or a list of the names, of the owners, landlords, exchangers, or lessors, or the location or locations, of property, or of an interest in property, offered for rent, sale, lease, or exchange, which may include a listing agreement.

(2) The name, or a list of the names, or the location or locations at which prospective or potential purchasers, buyers, lessees, tenants, or exchangers of property may be found or contacted, which may include a listing agreement.

(3) 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 the property any services, to promote the sale or lease of that property.

(4) 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 salespersons to the property that is offered for sale or lease.

(k) “Listing agent” means a licensee who provides services requiring a real estate license for or on behalf of a seller pursuant to a listing agreement. “Listing agent” includes a seller’s agent.

(l) “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 services for which a real estate license is required to the seller pursuant to the terms of the agreement. A “listing agreement” includes an “exclusive right to sell listing agreement,” “seller reserved listing agreement,” and “open listing agreement.”

(m) “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 seller’s agent.

(n) “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.

(o) “Offer to purchase” means a written contract executed by a buyer acting through a buyer’s agent that becomes the contract for the sale of the real property upon acceptance by the seller.

(p) “Person” includes corporation, company, and firm.

(q) “Real estate broker” means a person licensed as a broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code.

(r) “Real estate licensee” means a person, whether broker or salesperson, licensed under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code.

(s) “Real estate salesperson” means a natural person licensed as a salesperson under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and who, for a compensation or in expectation of a compensation, is retained by a 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 of the Business and Professions Code.

(t) “Real property” means any estate specified in (1) or (2) of Section 761 of this code in property, and includes all of the following:

(1) Single-family residential property.

(2) Multiunit residential property with more than four dwelling units.

(3) Commercial real property.

(4) Vacant land.

(5) A ground lease coupled with improvements.

(6) 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.

(u) “Real property sales contract” means an agreement in which one party agrees to convey title to real property to another party upon the satisfaction of specified conditions set forth in the contract and which does not require conveyance of title within one year from the date of formation of the contract.

(v) “Real property transaction” means a transaction for the sale of real property in which an agent is retained by a buyer, seller, or both a buyer and seller to act in that transaction, and includes a listing or an offer to purchase.

(w) “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.

(x) “Salesperson,” when used without modification, means a person licensed as a salesperson under any of the provisions of this article.

(y) “Sell,” “sale,” or “sold” means, except as provided in Section 10239.2 of the Business and Professions Code, a transaction for the transfer of real property from a seller to a buyer, and includes the following:

(1) An exchange of real property between a seller and a buyer.

(2) A real property sales contract within the meaning of Section 2985.

(3) A leasehold exceeding one year’s duration.

(z) “Seller” means a transferor in a real property transaction, and includes an owner who lists real property with a licensee, whether or not a transfer results, or who receives an offer to purchase real property of which that person is the owner from a licensee on behalf of another. “Seller” includes both a vendor and lessor of real property.

(aa) “Seller’s agent” means a licensee who provides services requiring a real estate license for or on behalf of a seller. A seller’s agent may or may not be a listing agent.

(ab) “Single-family residential property” or “single-family residential real property” means any of the following:

(1) Real property improved with one to four dwelling units, including any leasehold exceeding one year’s duration of such.

(2) A unit in a residential stock cooperative, condominium, or planned unit development.

(3) A mobilehome or manufactured home when offered for sale or sold through a real estate broker pursuant to Section 10131.6 of the Business and Professions Code.

(ac) “Trust deed” or “deed of trust” as used in this article includes “mortgage.

SEC. 7.

 Section 2079.13 of the Civil Code is amended to read:

2079.13.

As used in Sections 2079.7 and 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.

The

2079.13.

 The agent in the a real property transaction bears responsibility for that agent’s salespersons or broker associates who perform as agents on behalf of the agent. When a salesperson or broker associate 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 salesperson or broker associate functions.

(b)“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 of real property.

(c)“Commercial real property” means all real property in the state, except (1) single-family residential real property, (2) dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5, (3) a mobilehome, as defined in Section 798.3, (4) vacant land, or (5) a recreational vehicle, as defined in Section 799.29.

(d)“Dual agent” means an agent acting, either directly or through a salesperson or broker associate, as agent for both the seller and the buyer in a real property transaction.

(e)“Listing agreement” means a written contract between a seller 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, including rendering other services for which a real estate license is required to the seller pursuant to the terms of the agreement.

(f)“Seller’s 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 seller’s 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 buyer’s agent that 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, and includes (1) single-family residential property, (2) multiunit residential property with more than four dwelling units, (3) commercial real property, (4) vacant land, (5) a ground lease coupled with improvements, or (6) 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, 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 retained by a buyer, seller, or both a buyer and seller 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 of real property.

(n)“Buyer’s agent” means an agent who represents a buyer in a real property transaction.

SEC. 8.

 Section 2079.14 of the Civil Code is amended to read:

2079.14.

A seller’s agent and buyer’s agent shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and shall obtain a signed acknowledgment of receipt from that seller and buyer, except as provided in Section 2079.15, as follows:

(a)

2079.14.

 (a) A copy of the disclosure form specified in Section 2079.16 shall be provided in a real property transaction as follows:

(1) The seller’s agent, if any, shall provide the disclosure form to the seller prior to before entering into the listing agreement.

(b)

(2) The buyer’s agent shall provide the disclosure form to the buyer as soon as practicable prior to before execution of the buyer’s offer to purchase. If the offer to purchase is not prepared by the buyer’s agent, the buyer’s agent shall present the disclosure form to the buyer not later than the next business day after receiving the offer to purchase from the buyer.

(b) The agent providing the disclosure form specified in Section 2079.16 shall obtain a signed acknowledgment of receipt from the buyer or seller except as provided in Section 2079.15.

SECTION 1.Section 1087 of the Civil Code is amended to read:

1087.

A multiple listing service (MLS) is a facility of cooperation of agents and appraisers, operating through an intermediary that does not itself act as an agent or an appraiser, through which agents establish express or implied contracts for compensation between agents that are MLS participants in accordance with its MLS rules with respect to listed properties in a listing agreement, or that may be used by agents and appraisers, pursuant to the rules of the service, to prepare market evaluations and appraisals of real property.