California 2017-2018 Regular Session Status: In Committee 1 D cosponsors

AB 749 — Real estate.

Last action — From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2017-2018 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

(1) 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 Bureau of Real Estate. A willful violation of the law and other related real estate provisions is a crime. Under existing law, a real estate broker is a person who, for a compensation or in expectation of a compensation, regardless of the form or time of payment, does or negotiates to do specified acts for another or others, including soliciting or obtaining listings of real property, as specified. Under existing law, a real estate salesperson is a natural person who, for a compensation or in expectation of a compensation, is employed by a licensed real estate broker to do specified acts. Existing law generally describes the relationship between a real estate broker and a real estate licensee, which includes brokers and salespersons, as an employment relationship. This bill would include, within those acts for real estate brokers, soliciting or obtaining a promotional listing or listing agreement for that specified real property. The bill would also recast and redefine the term "salesperson" as a person who is retained by a licensed real estate broker. For purposes of these relationships, the bill would define the term "retained" to mean the relationship between a broker and a real estate licensee who is an independent contractor affiliated with, or an employee of, a broker to perform certain real estate activities subject to a broker's supervision. The bill would also define various other terms to describe the relationships between real estate brokers and salespersons and the parties involved in the sale of real estate transactions, including, but not limited to, seller, buyer, seller's licensee, buyer's licensee, dual broker, and dual licensee. Under existing law, whenever a real estate salesperson enters the employ of a real estate broker, the broker is required to immediately notify the commissioner in writing of specified changes to employment. This bill would require a responsible broker to provide notice to the commissioner whenever a real estate salesperson or real estate broker affiliates with, or is retained by, the responsible broker or an affiliation with a real estate licensee is terminated. The bill would require a real estate broker that affiliates with a responsible broker to also provide notice to the commissioner of the affiliation, and would require a real estate licensee to provide notice to the commissioner whenever the licensee acquires a new business address. The bill would also require the commissioner to specify the manner in which these notices are to be provided. Because a willful violation of these reporting requirements would be a crime, the bill would impose a state-mandated local program. Under existing law, a real estate broker is defined to include a person who leases or rents or offers to lease or rent, or places for rent, or solicits listings of places for rent, or solicits for prospective tenants, or negotiates the sale, purchase, or exchanges of leases on real property, or on a business opportunity, or collects rents from real property, or improvements thereon, or from business opportunities. Existing law provides that this definition does not apply to the manager of a hotel, a person who on behalf of another accepts transient occupancies, and a person who is an employee of a property management firm meeting certain requirements, as provided. This bill would repeal that provision excluding those persons from the definition of a real estate broker. Existing law makes it unlawful for any licensed real estate salesperson to pay any compensation for performing specified acts to any real estate licensee except through the broker under whom he or she is at the time licensed. This bill would authorize a licensee to enter into an agreement with another licensee to share compensation provided that the compensation is paid through the responsible broker. The bill would define a "responsible broker" as a real estate broker responsible for the exercise of control and supervision of real estate salespersons. Under existing law, when a licensee prepares or has prepared an agreement authorizing or employing such licensee to perform any of the acts for which he or she is required to hold a license, or when such licensee secures the signature of any person to any contract pertaining to such services or transaction, he or she is required to deliver a copy of the agreement to the person signing it at the time the signature is obtained. This bill would require the copy of the agreement to be delivered either in print or electronic record as soon as practicable after obtaining the signature. Existing law requires a notice containing certain information to be filed with the commissioner within a specified period of time after the first transaction and within that same time period if there is any material change in the required information. Existing law requires the broker or the designated officer or corporate broker to sign the notice. This bill would require the responsible broker to sign that notice. Because a willful violation of that signature requirement would be a crime, the bill would impose a state-mandated local program. Existing law requires the real estate salesperson's license to remain in the possession of the licensed real estate broker employer until canceled or until the salesperson leaves the employ of the broker, and the broker is required to make his or her license and the licenses of his salespersons available for inspection by the commissioner. This bill would repeal those requirements. Existing law authorizes the commissioner to suspend or revoke the license of a real estate licensee, delay the renewal of a license of a real estate licensee, or deny the issuance of a license to an applicant, who has committed specified acts. Existing law also authorizes the commissioner to suspend or revoke the license of a corporation, delay the renewal of a license of a corporation, or deny the issuance of a license to a corporation, if an officer, director, or person owning or controlling 10 or more of the corporation's stock has done specified acts. This bill would additionally authorize the commissioner to take such action for (1) having solicited or induced the promotional listing or listing agreement for the sale or lease of residential property on specified grounds due to the entry into the neighborhood of persons with certain characteristics and (2) for failure to surrender a license issued in error or mistake. (2) Under existing law, when a real estate license is issued to a corporation, if it desires any of its officers other than the specified designated officer to act under its license as a real estate broker, it is required to procure an additional license to so employ each additional officer. This bill would authorize a corporation, in the event of death or incapacity of a sole designated broker-officer, to operate continuously under its existing license if notice and an application is provided to the bureau within a specified period of time of the death or incapacity. Because the willful failure to provide that notice would be a crime, the bill would impose a state-mandated local program. Under existing law, each officer of a corporation through whom it is licensed to act as a real estate broker is, while so employed under that license, a licensed real estate broker, but is only licensed to act as such for and on behalf of the corporation as an officer. This bill would not preclude a designated corporate officer who has a separate individual license from conducting licensed activity for another entity if the entity for which he or she acts is clearly disclosed and apparent to any member of the public using his or her services outside the corporation. When a corporation wishes to act as a real estate broker, the bill would require the corporation to be licensed by the bureau through qualified broker-officers, as provided. The bill would provide that an officer of a corporation through whom it is licensed to act need not maintain an individual broker's license, but would provide that the officer is subject to all duties and responsibilities of a licensed real estate broker. Because a willful violation these requirements would be a crime, the bill would impose a state-mandated local program. (3) This bill would make numerous conforming and nonsubstantive changes. (4) This bill would make the operation of its provisions contingent on the enactment of AB 1289 relating to real estate introduced in the 2017–18 Regular Session. (5) 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.

Bill Text

Action History

  1. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

  2. Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

  3. In committee: Held under submission.

  4. In committee: Set, first hearing. Referred to APPR. suspense file.

  5. From committee: Do pass and re-refer to Com. on APPR. (Ayes 15. Noes 0.) (January 9). Re-referred to Com. on APPR.

  6. Re-referred to Com. on B. & P.

  7. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & P. Read second time and amended.

  8. Re-referred to Com. on B. & P.

  9. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & P. Read second time and amended.

  10. Referred to Com. on B. & P.

  11. From printer. May be heard in committee March 18.

  12. Read first time. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

What does AB 749 do?
(1) 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 Bureau of Real Estate. A willful violation of the law and other related real estate provisions is a crime. Under existing law, a real estate broker is a person who, for a compensation or in expectation of a compensation, regardless of the form or time of payment, does or negotiates to do specified acts for another or others, including soliciting or obtaining listings of real property, as specified. Under existing law, a real estate salesperson is a natural person who, for a compensation or in expectation of a compensation, is employed by a licensed real estate broker to do specified acts. Existing law generally describes the relationship between a real estate broker and a real estate licensee, which includes brokers and salespersons, as an employment relationship. This bill would include, within those acts for real estate brokers, soliciting or obtaining a promotional listing or listing agreement for that specified real property. The bill would also recast and redefine the term "salesperson" as a person who is retained by a licensed real estate broker. For purposes of these relationships, the bill would define the term "retained" to mean the relationship between a broker and a real estate licensee who is an independent contractor affiliated with, or an employee of, a broker to perform certain real estate activities subject to a broker's supervision. The bill would also define various other terms to describe the relationships between real estate brokers and salespersons and the parties involved in the sale of real estate transactions, including, but not limited to, seller, buyer, seller's licensee, buyer's licensee, dual broker, and dual licensee. Under existing law, whenever a real estate salesperson enters the employ of a real estate broker, the broker is required to immediately notify the commissioner in writing of specified changes to employment. This bill would require a responsible broker to provide notice to the commissioner whenever a real estate salesperson or real estate broker affiliates with, or is retained by, the responsible broker or an affiliation with a real estate licensee is terminated. The bill would require a real estate broker that affiliates with a responsible broker to also provide notice to the commissioner of the affiliation, and would require a real estate licensee to provide notice to the commissioner whenever the licensee acquires a new business address. The bill would also require the commissioner to specify the manner in which these notices are to be provided. Because a willful violation of these reporting requirements would be a crime, the bill would impose a state-mandated local program. Under existing law, a real estate broker is defined to include a person who leases or rents or offers to lease or rent, or places for rent, or solicits listings of places for rent, or solicits for prospective tenants, or negotiates the sale, purchase, or exchanges of leases on real property, or on a business opportunity, or collects rents from real property, or improvements thereon, or from business opportunities. Existing law provides that this definition does not apply to the manager of a hotel, a person who on behalf of another accepts transient occupancies, and a person who is an employee of a property management firm meeting certain requirements, as provided. This bill would repeal that provision excluding those persons from the definition of a real estate broker. Existing law makes it unlawful for any licensed real estate salesperson to pay any compensation for performing specified acts to any real estate licensee except through the broker under whom he or she is at the time licensed. This bill would authorize a licensee to enter into an agreement with another licensee to share compensation provided that the compensation is paid through the responsible broker. The bill would define a "responsible broker" as a real estate broker responsible for the exercise of control and supervision of real estate salespersons. Under existing law, when a licensee prepares or has prepared an agreement authorizing or employing such licensee to perform any of the acts for which he or she is required to hold a license, or when such licensee secures the signature of any person to any contract pertaining to such services or transaction, he or she is required to deliver a copy of the agreement to the person signing it at the time the signature is obtained. This bill would require the copy of the agreement to be delivered either in print or electronic record as soon as practicable after obtaining the signature. Existing law requires a notice containing certain information to be filed with the commissioner within a specified period of time after the first transaction and within that same time period if there is any material change in the required information. Existing law requires the broker or the designated officer or corporate broker to sign the notice. This bill would require the responsible broker to sign that notice. Because a willful violation of that signature requirement would be a crime, the bill would impose a state-mandated local program. Existing law requires the real estate salesperson's license to remain in the possession of the licensed real estate broker employer until canceled or until the salesperson leaves the employ of the broker, and the broker is required to make his or her license and the licenses of his salespersons available for inspection by the commissioner. This bill would repeal those requirements. Existing law authorizes the commissioner to suspend or revoke the license of a real estate licensee, delay the renewal of a license of a real estate licensee, or deny the issuance of a license to an applicant, who has committed specified acts. Existing law also authorizes the commissioner to suspend or revoke the license of a corporation, delay the renewal of a license of a corporation, or deny the issuance of a license to a corporation, if an officer, director, or person owning or controlling 10 or more of the corporation's stock has done specified acts. This bill would additionally authorize the commissioner to take such action for (1) having solicited or induced the promotional listing or listing agreement for the sale or lease of residential property on specified grounds due to the entry into the neighborhood of persons with certain characteristics and (2) for failure to surrender a license issued in error or mistake. (2) Under existing law, when a real estate license is issued to a corporation, if it desires any of its officers other than the specified designated officer to act under its license as a real estate broker, it is required to procure an additional license to so employ each additional officer. This bill would authorize a corporation, in the event of death or incapacity of a sole designated broker-officer, to operate continuously under its existing license if notice and an application is provided to the bureau within a specified period of time of the death or incapacity. Because the willful failure to provide that notice would be a crime, the bill would impose a state-mandated local program. Under existing law, each officer of a corporation through whom it is licensed to act as a real estate broker is, while so employed under that license, a licensed real estate broker, but is only licensed to act as such for and on behalf of the corporation as an officer. This bill would not preclude a designated corporate officer who has a separate individual license from conducting licensed activity for another entity if the entity for which he or she acts is clearly disclosed and apparent to any member of the public using his or her services outside the corporation. When a corporation wishes to act as a real estate broker, the bill would require the corporation to be licensed by the bureau through qualified broker-officers, as provided. The bill would provide that an officer of a corporation through whom it is licensed to act need not maintain an individual broker's license, but would provide that the officer is subject to all duties and responsibilities of a licensed real estate broker. Because a willful violation these requirements would be a crime, the bill would impose a state-mandated local program. (3) This bill would make numerous conforming and nonsubstantive changes. (4) This bill would make the operation of its provisions contingent on the enactment of AB 1289 relating to real estate introduced in the 2017–18 Regular Session. (5) 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.
Who sponsors AB 749?
AB 749 is sponsored by Irwin, Jacqui (Democratic).
What is the current status of AB 749?
This bill died with 2017-2018 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 749?
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