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California Dual Agency Ban Bill Turned Back, For Now
A California bill requiring more stringent disclosures by commercial real estate brokers was turned back by the Assembly in committee, though an amended bill could be submitted for reconsideration. If enacted, the Assembly Bill 1059 (AB-1059) would outlaw dual agency in all CRE transactions.
The bill would cause significant disruption in the CRE industry. Brokers and sales people could be put out of work, some companies could go out of business, and the major brokerage firms would face a big decision – decide to represent landlords or only represent tenants.
The bill was introduced last year, and sought to change an existing law that permits a broker to act as a dual agent, as long as both parties consent to the arrangement after full disclosure is made. AB-1059 faced opposition from business and real estate groups, including AIR CRE, the California Association of Realtors, NAIOP California, BOMA California and CBRE.
For comments, questions or concerns, please contact Dennis Kaiser


