Chapter 1 - General Provisions

California Business and Professions Code — §§ 10000-10035

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Added by Stats. 1943, Ch. 127.

This part may be cited as the Real Estate Law.

Amended by Stats. 2018, Ch. 285, Sec. 1. (AB 2884) Effective January 1, 2019.

Except as otherwise specified, the definitions in this chapter apply to the provisions of this part only and do not affect any other provisions of this code.

Amended by Stats. 2016, Ch. 177, Sec. 2. (AB 685) Effective January 1, 2017.

“Commissioner” means the Real Estate Commissioner.

Repealed (in Sec. 5) and added by Stats. 2017, Ch. 828, Sec. 6. (SB 173) Effective January 1, 2018. Section operative July 1, 2018, by its own provisions.

(a)“Department” means the Department of Real Estate in the Business, Consumer Services, and Housing Agency.
(b)This section shall become operative on July 1, 2018.

Repealed (in Sec. 7) and added by Stats. 2017, Ch. 828, Sec. 8. (SB 173) Effective January 1, 2018. Section operative July 1, 2018, by its own provisions.

(a)Whenever the terms “bureau,” “division,” “Bureau of Real Estate,” “State Real Estate Division,” or “Real Estate Division” are used in this division, they mean the Department of Real Estate.
(b)Whenever the terms “Bureau of Real Estate,” “State Real Estate Division,” or “Real Estate Division” are used in any other law, they mean the Department of Real Estate.
(c)This section shall become operative on July 1, 2018.

Amended by Stats. 1968, Ch. 75.

“Person” includes corporation, company and firm.

Amended by Stats. 2016, Ch. 177, Sec. 3. (AB 685) Effective January 1, 2017.

“Provisions of this part relating to real estate” means the provisions of Chapters 1, 2, 3, and 6 of Part 1.

Amended by Stats. 2016, Ch. 177, Sec. 4. (AB 685) Effective January 1, 2017.

“Provisions of this part relating to business opportunity regulation” means the provisions of Chapters 1, 2, and 6 of Part 1.

Added by Stats. 1989, Ch. 1116, Sec. 1. Effective September 30, 1989.

Solely with regard to any transaction involving the sale, lease, or exchange of a business opportunity occurring before, on, or after the effective date of this section, this division shall not apply to any person licensed at the time of the transaction as a securities broker or securities dealer under any law of this state or of the United States, or by any employee, officer, or agent of that person while acting under the direction of, and within the scope of, his or her employment with that person in connection with the transaction.

As used in this section, “any transaction involving the sale, lease, or exchange of a business opportunity” does not include any of the acts described in Section 10131 or Section 10131.2 if the substance of the transaction is to transfer, sell, lease, or exchange an interest in real property for the purpose of evading this part.

Amended by Stats. 2016, Ch. 177, Sec. 5. (AB 685) Effective January 1, 2017.

“Provisions of this part relating to mineral, oil, and gas brokerage” means the provisions of Chapters 1, 2, 6, and 7, of Part 1.

Amended by Stats. 2016, Ch. 177, Sec. 6. (AB 685) Effective January 1, 2017.

“Provisions of this part relating to hearings” means the provisions of Article 3 of Chapter 2 of Part 1.

Added by Stats. 2018, Ch. 285, Sec. 2. (AB 2884) Effective January 1, 2019.

(a)Nothing in Assembly Bill 1289 of the 2017–18 Regular Session or Assembly Bill 2884 of the 2017–18 Regular Session shall be construed to affect any of the following:
(1)A real estate broker’s duties under existing statutory or common law as an agent of a person who retains that broker to perform acts for which a license is required under this division.
(2)Any fiduciary duties owed by a real estate broker to a person who retains that broker to perform acts for which a license is required under this division.
(3)Any duty of disclosure or any other duties or obligations of a real estate broker that arise under

this division or other existing applicable California law, including common law.

(4)Any duties or obligations of a salesperson or a broker associate that arise under this division or existing applicable California law, including common law, including duties and obligations to the salesperson’s or broker associate’s responsible broker.
(5)A responsible broker’s duty of supervision and oversight for the acts of retained salespersons or broker associates that arise under this division or other existing applicable California law, including common law.
(b)(1) The Legislature finds and declares that a responsible broker, as defined in Section 10015.1, has the duty to supervise and oversee the licensed acts of each salesperson and broker associate affiliated with and working under his or her

supervision, regardless of whether the retention contract with that salesperson or broker associate specifies an independent contractor relationship or an employment relationship.

(2)The Legislature finds and declares that, consistent with existing statutory and common law, a responsible broker is liable for the actions or negligence of a salesperson or broker associate retained by the responsible broker to perform acts for which a license is required under this division.
(c)For purposes of this section, references to “existing statutory law” and “existing applicable California law” refer to the law as it read immediately prior to enactment of Assembly Bill 1289 of the 2017–18 Regular Session and Assembly Bill 2884 of the 2017–18 Regular Session.

Amended by Stats. 2016, Ch. 177, Sec. 7. (AB 685) Effective January 1, 2017.

“Licensee,” when used without modification, means a person, whether broker or salesperson, licensed under any of the provisions of this part.

Amended by Stats. 2016, Ch. 177, Sec. 8. (AB 685) Effective January 1, 2017.

“Broker,” when used without modification, means a person licensed as a broker under any of the provisions of this part.

Amended by Stats. 2016, Ch. 177, Sec. 9. (AB 685) Effective January 1, 2017.

“Salesperson,” when used without modification, means a person licensed as a salesperson under any of the provisions of this part. Whenever the word salesman is used in this division, or in the rules and regulations of the commissioner, it means salesperson. Notwithstanding any other law, a licensee may elect to refer to his or her licensed status as real estate salesman, real estate saleswoman, or real estate salesperson.

Amended by Stats. 2016, Ch. 177, Sec. 10. (AB 685) Effective January 1, 2017.

“Real estate licensee” means a person, whether broker or salesperson, licensed under Chapter 3 of this part.

Amended by Stats. 2016, Ch. 177, Sec. 11. (AB 685) Effective January 1, 2017.

“Real estate broker” means a person licensed as a broker under Chapter 3 of this part.

Added by Stats. 2018, Ch. 285, Sec. 3. (AB 2884) Effective January 1, 2019.

“Responsible broker” means the real estate broker responsible for the exercise of control and supervision of real estate salespersons under Section 10159.2, or a licensee subject to discipline under subdivision (h) of Section 10177 for failure to supervise activity requiring a real estate license. The supervision of a salesperson required under this part or any other law is limited to regulatory compliance and consumer protection.

Added by Stats. 2018, Ch. 285, Sec. 4. (AB 2884) Effective January 1, 2019.

“Manager” means a real estate licensee authorized to perform supervisorial services for a responsible broker.

Added by Stats. 2018, Ch. 285, Sec. 5. (AB 2884) Effective January 1, 2019.

“Broker associate” means a broker retained by a responsible broker who has authority to provide services requiring a real estate license on behalf of the responsible broker.

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