Builders and their affiliates who conduct real estate brokerage activities should be prepared to comply with new broker-associate notification requirements taking effect on January 1, 2018. “Broker-associates” are those individuals licensed as real estate brokers who work in the capacity of a salesperson for another “responsible broker” (i.e., the individual broker or corporation responsible for the exercise of control and supervision of a salesperson). Broker-associates may work in the capacity of a salesperson for another employing broker and also work as an independent broker, although the affiliation/employment agreement between the responsible broker and the broker-associate may restrict such activity. Aimed at increasing transparency in real estate transactions for consumers, AB 2330 amended California Business and Professions Code Sections 10083.2 and 10161.8 to impose new requirements on responsible brokers and the California Bureau of Real Estate (“BRE”).
Under AB 2330, whenever a broker-associate enters the employ of another real estate broker, the responsible broker must immediately notify the BRE of this arrangement. The responsible broker must also notify the BRE of termination of the relationship. BRE has developed a new form, RE 215 – Broker-Associate Affiliation Notification, for this purpose. The new requirements apply to all broker-associate arrangements, including those affiliations which commenced prior to January 1, 2018.
AB 2330 also requires the BRE to post on its website whether a real estate licensee is an associate licensee (i.e., licensee acting as an agent of a broker), and if the associate licensee is a broker, identify each responsible broker with whom the licensee is contractually associated.
BRE has published the new form and advisory materials, available at the links below:
RE 215 – Broker-Associate Affiliation Notification
Advisory and Guidance to Licensees Regarding Assembly Bill 2330
Frequently Asked Questions Regarding “Broker-Associate” Affiliation Notification
If you have any questions regarding these requirements, please contact Sheri Marvin or Shannon Mandich.