California Legislative Developments Affecting Commercial Real Property in 2015
Disclosure Requirements
Since 1985, agents and brokers in residential real estate transactions have had to disclose their agency role in those transactions. Until now, no such requirement was imposed on licensees in commercial transactions. Effective January 1, 2015, licensees in commercial real property sales and leases of more than one year must disclose whether they represent (1) only the landlord/seller; (2) only the tenant /buyer; or (3) both the landlord/seller and the tenant/buyer (dual agent). In a related case law development, a California Court of Appeals held that licensees working for commercial brokerage companies are dual agents in any transaction in which another licensee working for the same company is representing a party on the other side of a transaction. In that situation, both licensees hold fiduciary duties to both parties to the transaction.
Click below for a link to the full article on legislative developments affecting California real property that became effective in 2015.
