Amended IN Assembly April 24, 2024 Amended IN Assembly March 21, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2992Introduced by Assembly Member Stephanie NguyenFebruary 16, 2024An act to add Sections 10018.18 and 10134 to the Business and Professions Code, relating to real estate.LEGISLATIVE COUNSEL'S DIGESTAB 2992, as amended, Stephanie Nguyen. Real Estate Law: buyer-broker agreements.Existing law, the Real Estate Law, provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Department of Real Estate within the Business, Consumer Services, and Housing Agency. Existing law defines buyers agent as a licensee who provides services requiring a real estate license for or on behalf of a buyer. Existing law specifies that a buyer includes a person who executes an offer to purchase real property from a seller through a real estate licensee. Existing law specifies that a willful violation of the Real Estate Law and other related real estate provisions is a crime.This bill would require that a buyers agent and a buyer execute a buyer-broker agreement as soon as practicable, but no later than the execution of the buyers offer to purchase real property. The bill would define a buyer-broker agreement as a written contract between a buyer and a buyers agent by which the buyers agent has been authorized to provide services for or on behalf of the buyer for which a real estate license is required under the contract. By creating a new crime, this bill would impose a state-mandated local program. The bill would prohibit a buyer-broker agreement from lasting longer than 3 months from the date the agreement was made, except if the agreement was entered into between a real estate broker and a corporation, limited liability company, or partnership. The bill would prohibit a buyer-broker agreement from renewing automatically and would require a renewal of a buyer-broker agreement to be in writing and be dated and signed by all parties to the agreement. The bill would prohibit a buyer-broker agreement, as described, from lasting longer than 3 months from the date the renewal was made. The bill would make a buyer-broker agreement made in violation of these provisions void and unenforceable.By creating a new crime, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 10018.18 is added to the Business and Professions Code, to read:10018.18. Buyer-broker agreement means a written contract between a buyer and a buyers agent by which the buyers agent has been authorized by the buyer to provide services for or on behalf of the buyer for which a real estate license is required pursuant to the terms of the contract.SEC. 2. Section 10134 is added to the Business and Professions Code, to read:10134. (a) A buyer-broker agreement shall be executed between a buyers agent and a buyer as soon as practicable, but no later than the execution of the buyers offer to purchase real property.(b) (1) A buyer-broker agreement shall not last longer than three months from the date the agreement was made. This paragraph shall not apply to a buyer-broker agreement entered into between a real estate broker and a corporation, limited liability company, or partnership.(2) A buyer-broker agreement shall not renew automatically, and a renewal of a buyer-broker agreement shall be in writing and be dated and signed by all parties to the agreement. A renewal of a buyer-broker agreement subject to paragraph (1) shall not last longer than three months from the date the renewal was made.(3) A buyer-broker agreement that is made in violation of this subdivision is void and unenforceable.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
Amended IN Assembly April 24, 2024 Amended IN Assembly March 21, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2992Introduced by Assembly Member Stephanie NguyenFebruary 16, 2024An act to add Sections 10018.18 and 10134 to the Business and Professions Code, relating to real estate.LEGISLATIVE COUNSEL'S DIGESTAB 2992, as amended, Stephanie Nguyen. Real Estate Law: buyer-broker agreements.Existing law, the Real Estate Law, provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Department of Real Estate within the Business, Consumer Services, and Housing Agency. Existing law defines buyers agent as a licensee who provides services requiring a real estate license for or on behalf of a buyer. Existing law specifies that a buyer includes a person who executes an offer to purchase real property from a seller through a real estate licensee. Existing law specifies that a willful violation of the Real Estate Law and other related real estate provisions is a crime.This bill would require that a buyers agent and a buyer execute a buyer-broker agreement as soon as practicable, but no later than the execution of the buyers offer to purchase real property. The bill would define a buyer-broker agreement as a written contract between a buyer and a buyers agent by which the buyers agent has been authorized to provide services for or on behalf of the buyer for which a real estate license is required under the contract. By creating a new crime, this bill would impose a state-mandated local program. The bill would prohibit a buyer-broker agreement from lasting longer than 3 months from the date the agreement was made, except if the agreement was entered into between a real estate broker and a corporation, limited liability company, or partnership. The bill would prohibit a buyer-broker agreement from renewing automatically and would require a renewal of a buyer-broker agreement to be in writing and be dated and signed by all parties to the agreement. The bill would prohibit a buyer-broker agreement, as described, from lasting longer than 3 months from the date the renewal was made. The bill would make a buyer-broker agreement made in violation of these provisions void and unenforceable.By creating a new crime, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Amended IN Assembly April 24, 2024 Amended IN Assembly March 21, 2024
Amended IN Assembly April 24, 2024
Amended IN Assembly March 21, 2024
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 2992
Introduced by Assembly Member Stephanie NguyenFebruary 16, 2024
Introduced by Assembly Member Stephanie Nguyen
February 16, 2024
An act to add Sections 10018.18 and 10134 to the Business and Professions Code, relating to real estate.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2992, as amended, Stephanie Nguyen. Real Estate Law: buyer-broker agreements.
Existing law, the Real Estate Law, provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Department of Real Estate within the Business, Consumer Services, and Housing Agency. Existing law defines buyers agent as a licensee who provides services requiring a real estate license for or on behalf of a buyer. Existing law specifies that a buyer includes a person who executes an offer to purchase real property from a seller through a real estate licensee. Existing law specifies that a willful violation of the Real Estate Law and other related real estate provisions is a crime.This bill would require that a buyers agent and a buyer execute a buyer-broker agreement as soon as practicable, but no later than the execution of the buyers offer to purchase real property. The bill would define a buyer-broker agreement as a written contract between a buyer and a buyers agent by which the buyers agent has been authorized to provide services for or on behalf of the buyer for which a real estate license is required under the contract. By creating a new crime, this bill would impose a state-mandated local program. The bill would prohibit a buyer-broker agreement from lasting longer than 3 months from the date the agreement was made, except if the agreement was entered into between a real estate broker and a corporation, limited liability company, or partnership. The bill would prohibit a buyer-broker agreement from renewing automatically and would require a renewal of a buyer-broker agreement to be in writing and be dated and signed by all parties to the agreement. The bill would prohibit a buyer-broker agreement, as described, from lasting longer than 3 months from the date the renewal was made. The bill would make a buyer-broker agreement made in violation of these provisions void and unenforceable.By creating a new crime, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Real Estate Law, provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Department of Real Estate within the Business, Consumer Services, and Housing Agency. Existing law defines buyers agent as a licensee who provides services requiring a real estate license for or on behalf of a buyer. Existing law specifies that a buyer includes a person who executes an offer to purchase real property from a seller through a real estate licensee. Existing law specifies that a willful violation of the Real Estate Law and other related real estate provisions is a crime.
This bill would require that a buyers agent and a buyer execute a buyer-broker agreement as soon as practicable, but no later than the execution of the buyers offer to purchase real property. The bill would define a buyer-broker agreement as a written contract between a buyer and a buyers agent by which the buyers agent has been authorized to provide services for or on behalf of the buyer for which a real estate license is required under the contract. By creating a new crime, this bill would impose a state-mandated local program. The bill would prohibit a buyer-broker agreement from lasting longer than 3 months from the date the agreement was made, except if the agreement was entered into between a real estate broker and a corporation, limited liability company, or partnership. The bill would prohibit a buyer-broker agreement from renewing automatically and would require a renewal of a buyer-broker agreement to be in writing and be dated and signed by all parties to the agreement. The bill would prohibit a buyer-broker agreement, as described, from lasting longer than 3 months from the date the renewal was made. The bill would make a buyer-broker agreement made in violation of these provisions void and unenforceable.
By creating a new crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 10018.18 is added to the Business and Professions Code, to read:10018.18. Buyer-broker agreement means a written contract between a buyer and a buyers agent by which the buyers agent has been authorized by the buyer to provide services for or on behalf of the buyer for which a real estate license is required pursuant to the terms of the contract.SEC. 2. Section 10134 is added to the Business and Professions Code, to read:10134. (a) A buyer-broker agreement shall be executed between a buyers agent and a buyer as soon as practicable, but no later than the execution of the buyers offer to purchase real property.(b) (1) A buyer-broker agreement shall not last longer than three months from the date the agreement was made. This paragraph shall not apply to a buyer-broker agreement entered into between a real estate broker and a corporation, limited liability company, or partnership.(2) A buyer-broker agreement shall not renew automatically, and a renewal of a buyer-broker agreement shall be in writing and be dated and signed by all parties to the agreement. A renewal of a buyer-broker agreement subject to paragraph (1) shall not last longer than three months from the date the renewal was made.(3) A buyer-broker agreement that is made in violation of this subdivision is void and unenforceable.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 10018.18 is added to the Business and Professions Code, to read:10018.18. Buyer-broker agreement means a written contract between a buyer and a buyers agent by which the buyers agent has been authorized by the buyer to provide services for or on behalf of the buyer for which a real estate license is required pursuant to the terms of the contract.
SECTION 1. Section 10018.18 is added to the Business and Professions Code, to read:
### SECTION 1.
10018.18. Buyer-broker agreement means a written contract between a buyer and a buyers agent by which the buyers agent has been authorized by the buyer to provide services for or on behalf of the buyer for which a real estate license is required pursuant to the terms of the contract.
10018.18. Buyer-broker agreement means a written contract between a buyer and a buyers agent by which the buyers agent has been authorized by the buyer to provide services for or on behalf of the buyer for which a real estate license is required pursuant to the terms of the contract.
10018.18. Buyer-broker agreement means a written contract between a buyer and a buyers agent by which the buyers agent has been authorized by the buyer to provide services for or on behalf of the buyer for which a real estate license is required pursuant to the terms of the contract.
10018.18. Buyer-broker agreement means a written contract between a buyer and a buyers agent by which the buyers agent has been authorized by the buyer to provide services for or on behalf of the buyer for which a real estate license is required pursuant to the terms of the contract.
SEC. 2. Section 10134 is added to the Business and Professions Code, to read:10134. (a) A buyer-broker agreement shall be executed between a buyers agent and a buyer as soon as practicable, but no later than the execution of the buyers offer to purchase real property.(b) (1) A buyer-broker agreement shall not last longer than three months from the date the agreement was made. This paragraph shall not apply to a buyer-broker agreement entered into between a real estate broker and a corporation, limited liability company, or partnership.(2) A buyer-broker agreement shall not renew automatically, and a renewal of a buyer-broker agreement shall be in writing and be dated and signed by all parties to the agreement. A renewal of a buyer-broker agreement subject to paragraph (1) shall not last longer than three months from the date the renewal was made.(3) A buyer-broker agreement that is made in violation of this subdivision is void and unenforceable.
SEC. 2. Section 10134 is added to the Business and Professions Code, to read:
### SEC. 2.
10134. (a) A buyer-broker agreement shall be executed between a buyers agent and a buyer as soon as practicable, but no later than the execution of the buyers offer to purchase real property.(b) (1) A buyer-broker agreement shall not last longer than three months from the date the agreement was made. This paragraph shall not apply to a buyer-broker agreement entered into between a real estate broker and a corporation, limited liability company, or partnership.(2) A buyer-broker agreement shall not renew automatically, and a renewal of a buyer-broker agreement shall be in writing and be dated and signed by all parties to the agreement. A renewal of a buyer-broker agreement subject to paragraph (1) shall not last longer than three months from the date the renewal was made.(3) A buyer-broker agreement that is made in violation of this subdivision is void and unenforceable.
10134. (a) A buyer-broker agreement shall be executed between a buyers agent and a buyer as soon as practicable, but no later than the execution of the buyers offer to purchase real property.(b) (1) A buyer-broker agreement shall not last longer than three months from the date the agreement was made. This paragraph shall not apply to a buyer-broker agreement entered into between a real estate broker and a corporation, limited liability company, or partnership.(2) A buyer-broker agreement shall not renew automatically, and a renewal of a buyer-broker agreement shall be in writing and be dated and signed by all parties to the agreement. A renewal of a buyer-broker agreement subject to paragraph (1) shall not last longer than three months from the date the renewal was made.(3) A buyer-broker agreement that is made in violation of this subdivision is void and unenforceable.
10134. (a) A buyer-broker agreement shall be executed between a buyers agent and a buyer as soon as practicable, but no later than the execution of the buyers offer to purchase real property.(b) (1) A buyer-broker agreement shall not last longer than three months from the date the agreement was made. This paragraph shall not apply to a buyer-broker agreement entered into between a real estate broker and a corporation, limited liability company, or partnership.(2) A buyer-broker agreement shall not renew automatically, and a renewal of a buyer-broker agreement shall be in writing and be dated and signed by all parties to the agreement. A renewal of a buyer-broker agreement subject to paragraph (1) shall not last longer than three months from the date the renewal was made.(3) A buyer-broker agreement that is made in violation of this subdivision is void and unenforceable.
10134. (a) A buyer-broker agreement shall be executed between a buyers agent and a buyer as soon as practicable, but no later than the execution of the buyers offer to purchase real property.
(b) (1) A buyer-broker agreement shall not last longer than three months from the date the agreement was made. This paragraph shall not apply to a buyer-broker agreement entered into between a real estate broker and a corporation, limited liability company, or partnership.
(2) A buyer-broker agreement shall not renew automatically, and a renewal of a buyer-broker agreement shall be in writing and be dated and signed by all parties to the agreement. A renewal of a buyer-broker agreement subject to paragraph (1) shall not last longer than three months from the date the renewal was made.
(3) A buyer-broker agreement that is made in violation of this subdivision is void and unenforceable.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
### SEC. 3.