ContractsBuyer-broker Representation Agreements

Section § 1670.50

Explanation

When a real estate agent is helping a buyer purchase property, they need to sign a formal agreement called a buyer-broker representation agreement as soon as possible. This agreement should cover details like the broker's payment, what services will be provided, when payment is due, and how the contract can be ended. Before signing, the agent must give the buyer a specific disclosure form. This type of agreement can only last up to three months at a time, and automatic renewals aren't allowed. If someone breaks this rule, their agreement isn't valid, and a licensed person who does so could face penalties under their licensing law. This type of agreement is defined elsewhere in the legal code.

(a)CA Civil Law Code § 1670.50(a) A buyer-broker representation agreement shall be executed between a buyer’s agent and a buyer as soon as practicable, but no later than the execution of the buyer’s offer to purchase real property.
(b)CA Civil Law Code § 1670.50(b) The buyer-broker representation agreement shall include, but not be limited to, terms related to all of the following:
(1)CA Civil Law Code § 1670.50(b)(1) Compensation of the real estate broker.
(2)CA Civil Law Code § 1670.50(b)(2) Services to be rendered.
(3)CA Civil Law Code § 1670.50(b)(3) When compensation is due.
(4)CA Civil Law Code § 1670.50(b)(4) Contract termination.
(c)CA Civil Law Code § 1670.50(c) Prior to execution of a buyer-broker representation agreement between the buyer and the buyers’s agent, the buyer’s agent shall provide the disclosure form required by Section 2079.14 to the buyer.
(d)Copy CA Civil Law Code § 1670.50(d)
(1)Copy CA Civil Law Code § 1670.50(d)(1) A buyer-broker representation agreement shall not last longer than three months from the date the agreement was made. This paragraph shall not apply to a buyer-broker representation agreement entered into between a real estate broker and a corporation, limited liability company, or partnership.
(2)CA Civil Law Code § 1670.50(d)(2) A buyer-broker representation agreement shall not renew automatically, and a renewal of a buyer-broker representation agreement shall be in writing and be dated and signed by all parties to the agreement. A renewal of a buyer-broker representation agreement subject to paragraph (1) shall not last longer than three months from the date the renewal was made.
(3)CA Civil Law Code § 1670.50(d)(3) A buyer-broker representation agreement that is made in violation of this subdivision is void and unenforceable.
(e)CA Civil Law Code § 1670.50(e) A person licensed pursuant to Division 4 (commencing with Section 10000) of the Business and Professions Code who violates this section shall be deemed to have violated that person’s licensing law.
(f)CA Civil Law Code § 1670.50(f) For the purposes of this section, “buyer-broker representation agreement” means the same as it is defined in subdivision (p) of Section 2079.13.
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