| There has been much discussion about the National Realtors Association problems concerning Settlement and Mandated Buyer Broker Agreements. No one has mentioned that in CA there are approximately 434,661 licensees and 204,678 Realtors, so approximately 229,983 licensees are not Realtors and not affected by the decision. Stephanie Nguyen, Assemblymember from Sacramento area introduced a bill AB2992 in February to require all licensees in CA to use a Buyer Broker Agreement when selling single family residential property. It is now at the Senate Judiciary Committee and most votes so far have been unanimous. A good bet is that it will soon be law. Following are some phrases from AB2992. The bill would: Require that a buyer’s agent and a buyer execute a buyer-broker representation agreement as soon as practicable, but no later than the execution of the buyer’s offer to purchase real property.Define a buyer-broker representation agreement as a written contract between a buyer and a buyer’s agent by which the buyer’s agent has been authorized to provide specified services for or on behalf of the buyer under the contrast.Require a buyer-broker representation agreement to include specified terms and require that the buyer’s agent provide the buyer a specified disclosure prior to execution of the agreement.Prohibit a buyer-broker representation 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.Prohibit a buyer-broker representation agreement from renewing automatically and would require a renewal of the agreement to be in writing and be dated and signed by all parties to the agreement.Prohibit a buyer-broker representation agreement from lasting longer than 3 months from the date the renewal was made.Make a buyer-broker representation agreement made in violation of theses durational and renewal requirements void and unenforceable.Provide that a violation of these provisions by a licensed person under the Real Estate Law is also a violation of the person’s licensing law. For more information and to follow the bill, go to: https://digitaldemocracy.calmatters.org/bills/ca_202320240ab2992https://fastdemocracy.com/bill-search/ca/2023-2024/bills/CAB00032631/https://legiscan.com/CA/text/AB2992/id/2987187 |
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