Commercial Real Estate Agents and Brokers have new, stricter California Agency Disclosure requirements as of January 1, 2015. Senate Bill No. 1171 (August 2014, effective January 1, 2015) amends California Civil Code (Civ.Code) section 2079.13 affects “any commercial property” and “any leasehold in these types of property exceeding one year’s duration” in the definition of “Real property.” By expanding the definition of “Real Property”, the imposition of stringent agency disclosure requirements on commercial brokers previously imposed only on residential brokers.
Civ.Code section 2079.14 requires that the listing and selling agents shall provide seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, except for a limited exception and shall obtain a signed acknowledgement of receipt from that seller or buyer as follows:
- The listing agent, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement.
- The selling agent shall provide the disclosure form to the seller as soon as practicable prior to presenting the seller with an offer to purchase, unless the selling agent previously provided the seller with a copy of the disclosure form pursuant to subdivision (a).
- Where the selling agent does not deal on a face-to-face basis with the seller, the disclosure form prepared by the selling agent may be furnished to the seller (and acknowledgment of receipt obtained for the selling agent from the seller) by the listing agent, or the selling agent may deliver the disclosure form by certified mail addressed to the seller at his or her last known address, in which case no signed acknowledgment of receipt is required.
- The selling agent shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyer’s offer to purchase, except that if the offer to purchase is not prepared by the selling agent, the selling agent shall present the disclosure form to the buyer not later than the next business day after the selling agent receives the offer to purchase from the buyer.
If you require additional information regarding the requirements for Commercial Real Estate Agents and Brokers, you may contact Ariel Bedell, Esq. at The Loftin Firm, P.C., 760-431-2111 or [email protected] or view other Bedell Blogs on this topic at www.loftinfirm.com.