On Sep. 11, CAL LEG enrolled bill re buyer-broker representation.
CAL LEG enrolled Bill AB 2992 related to buyer-broker representation agreements.
Require agreements with amount of pay paid to real estate licensee for purchase of specified residential property/mobile home contain statement on negotiable rates.
Additionally, measure amends California civil procedure (CCP) CAL FIN 3-9.4-1298.
Buyer-Broker Agreements
Agreements providing for compensation to be paid to real estate licensee for purchase of residential property/mobile home must allow for commission to be set by brokers.
Buyer’s agent and buyer must execute buyer-broker representation agreement as soon as practicable, no later than the execution of buyer’s offer to purchase real property.
Prohibits the representation agreement from lasting longer than 3 months, except if entered into between broker and corporation, limited liability company, or partnership.
Additionally, any buyer-broker representation agreement that is made in violation of these durational and renewal requirements would also be void and unenforceable.
Violations by a licensed person under Real Estate Law is also violation of licensing law.
By expanding the scope of a crime, bill would impose a state-mandated local program.
Legislative History
On Feb. 16, 2024, bill introduced in Assembly; on May 16, 2024, bill passed Assembly.
On May 16, 2024, bill delivered to Senate; on Aug. 28, 2024, bill passed in Senate.
On Aug. 29, 2024, bill amendments concurred, on Sep. 11, bill delivered to governor.
Effectiveness
No effective date specified; generally effective Jan. 1 after enactment, on Jan. 1, 2025.
