Bill Text: CA AB892 | 2019-2020 | Regular Session | Amended
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
Amended
IN
Assembly
April 22, 2019 |
Amended
IN
Assembly
March 21, 2019 |
Assembly Bill | No. 892 |
Introduced by Assembly Member Holden |
February 20, 2019 |
LEGISLATIVE COUNSEL'S DIGEST
(1)The
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 information or parts thereof affects the value or desirability of the property.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
(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 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 1.
Section 1102.2 of the Civil Code is amended to read:1102.2.
This article does not apply to the following:SEC. 3.SEC. 2.
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)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. 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, unless that information or parts thereof affects the value or desirability of the property.
SEC. 5.SEC. 3.
Section 1102.155 of the Civil Code is amended to read:1102.155.
(a) 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. 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.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.
The agent in a real property transaction bears responsibility for that agent’s salespersons or broker associates who perform 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.
SEC. 4.
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:(l)
(m)
(n)