Ruth Carter - Axios Group Transaction Coordination

11/18/2025

The changes follow recommendations of Presidential Advisory Group and focus on ensuring the MLS Handbook reflects how agents and MLSs operate today.

02/27/2025

02/26/2025

https://www.car.org/riskmanagement/brokercompliance

THE STATE OF CALIFRONIA LAW******Requires a buyer representation agreement to be executed between a buyer’s agent and a buyer as soon as practicable, but no later than the ex*****on of the buyer’s offer to purchase real property. This law applies to nearly all types of property but excludes leases and rental agreements.

Application:
This law applies to:
Real property improved with 1 to 4 dwelling units including a unit in a stock cooperative, condominium or planned unit development
Multiunit residential property with more than four dwelling units
Commercial real property
Vacant land
A ground lease coupled with improvements, and
A manufactured home or a mobilehome when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.6 of the Business and Professions Code.
This law does not apply to:
Leases and rental agreements
Sale of state or federal land
Loan brokering services
Timing
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 ex*****on of the buyer’s offer to purchase real property.
Contents of the buyer representation agreement
The agreement must include:
Compensation of the real estate broker
Services to be rendered
When compensation is due
Contract termination
Three-month limit:
A buyer representation agreement cannot last longer than three months from the date the agreement was made, except for agreements entered into between a real estate broker and a corporation, limited liability company, or partnership.
Renewals:
A buyer representation agreement shall not renew automatically.
Any renewal shall be in writing and be dated and signed by all parties to the agreement.
Renewals cannot last longer than three months from the date the renewal was made.
Agency Disclosure
The Agency Disclosure must be provided prior to ex*****on (C.A.R. Form AD).
Void and Unenforceable
A buyer representation agreement that is made in violation of these provisions is void and unenforceable.
Licensing law violation
Any person licensed under the Real Estate Law who violates the provisions related to buyer representation agreements is deemed to have violated the licensing law.
Notice re negotiability of commissions
Statutory notice that compensation is not fixed by law and is negotiable must be included in all form buyer representation agreements.

Assembly Bill 2992is codified as Business and Professions Code § 10147.5, Civil Code §§ 2079.13, 2079.14, and 2079.16, and Code of Civil Procedure § 1298. Effective January 1, 2025.

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02/23/2025

id you know? Having a representation agreement in place with a buyer client is now required by California law. How does this impact the requirements of the NAR settlement and your business practices? This month's Quick Guide breaks down what you need to know about current rules and requirements for buyer representations agreements in California.

Quick Guide - Buyer Representation Agreements: What's New and What's Not?

02/11/2025

https://www.car.org/riskmanagement/brokercompliance

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02/11/2025

https://www.car.org/riskmanagement/brokercompliance

09/19/2024

09/19/2024

**Important Reminder for Agents: Understanding Buyer Representation Agreements**

If you're not aware, the maximum amount a buyer's agent will be paid is what’s outlined in the Buyer Representation Agreement. Payments from the seller or other sources to the buyer's agent are *subtracted* from this amount, not added. If there's a shortfall, the buyer is responsible for the difference unless otherwise agreed in writing.

When sending Broker Demands to Escrow, be sure to include the BRBC or PSRA, along with any commission addendums like the SPBB. It’s crucial that Escrow understands exactly who is paying what, and that the total matches what’s in the Buyer Representation Agreement.

Many agents risk not being paid—or being paid incorrectly—if this information isn't communicated clearly and upfront. I’m seeing a lot of confusion around this lately, so I wanted to offer some clarification. Hope this helps!

— Ruth Carter
Lic #01475046
916-968-1627
[email protected]

09/19/2024

Stay informed and prepared for these changes, which could take effect on January 1, 2025.

**AB 2992 Summary - Key Provisions for Real Estate Agents:**

1. **Mandatory Buyer Representation Agreements**: Agents must have a written buyer representation agreement before showing homes or submitting offers. This applies to all agents, whether or not they are licensed Realtors.

2. **90-Day Contract Limit**: Buyer representation agreements automatically expire after 90 days unless extended in writing. This ensures buyers aren’t locked into long-term contracts without mutual consent.

3. **Compensation Clarity**: The agreement must clearly state how and when the agent will be compensated, helping to prevent disputes over fees and services.

4. **Exemptions for Corporate Buyers**: Contracts with corporations, LLCs, or partnerships may follow different terms, allowing flexibility for non-individual buyers.

5. **Service Disclosure**: Agents must specify in the agreement the services they will provide, ensuring transparency and clarity in the client-agent relationship.