Bill Text: CA SB596 | 2015-2016 | Regular Session | Introduced
Bill Title: Real estate.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2016-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB596 Detail]
Download: California-2015-SB596-Introduced.html
BILL NUMBER: SB 596 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Anderson
FEBRUARY 27, 2015
An act to amend Section 10026 of the Business and Professions
Code, relating to real estate.
LEGISLATIVE COUNSEL'S DIGEST
SB 596, as introduced, Anderson. Real estate.
The Real Estate Law provides for the regulation and licensure of
real estate brokers and salespersons by the Real Estate Commissioner.
As used in the Real Estate Law, the term "advance fee" is defined as
a fee regardless of the form, that is claimed, demanded, charged,
received, or collected by a licensee for services requiring a
license, or for a listing, as defined, before fully completing the
service the licensee contracted to perform or represented would be
performed, with certain exceptions.
This bill would make nonsubstantive changes to these provisions.
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. 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 a listing, as that term is defined in Section 10027,
before fully completing the service the licensee contracted to
perform or represented would be performed. Neither an advance fee nor
the services to be performed shall be separated or divided into
components for the purpose of avoiding the application of this
division.
(b) For the purposes of this section, the term "advance fee" does
not include any of the following :
(1) "Security" as that term is used in Section 1950.5 of the Civil
Code.
(2) A "screening fee" as that term is used in Section 1950.6 of
the Civil Code.
(3) A fee that is claimed, demanded, charged, received, or
collected for the purpose of advertising the sale, lease, or exchange
of real estate, or of a business opportunity, in a newspaper of
general circulation, any other written publication, or through
electronic media comparable to any type of written publication,
provided that the electronic media or the publication is not under
the control or ownership of the broker.
(4) A fee earned for a specific service under a "limited service"
contract. For purposes of this section, a "limited service" contract
is a written agreement for real estate services described in
subdivision (a), (b), or (c) of Section 10131, and pursuant to which
such services are promoted, advertised, or presented as stand-alone
services, to be performed on a task-by-task basis, and for which
compensation is received as each separate, contracted-for task is
completed. To qualify for this exclusion, all services performed
pursuant to the contract must be described in subdivision (a), (b),
or (c) of Section 10131.
(c) A contract between a real estate broker and a principal that
requires payment of a commission to the broker after the contract is
fully performed does not represent an agreement for an advance fee.
(d) This section does not exempt from regulation the charging or
collecting of a fee under Section 1950.5 or 1950.6 of the Civil Code,
but instead regulates fees that are not subject to those sections.
