The DRE has proposed new regulations concerning “Buyer-Broker Representation Agreements”. The new commissioner regulations—Sections 2908.1, 2908.2, and 2908.3—are part of AB 2992. I believe the best method to provide you the DRE information is to relay their notice.
In pertinent part, AB 2992 provides a definition of a “buyer-broker representation agreement”, details minimum required terms and conditions for such agreements, provides term length and renewal limitations for said agreements, and identifies the type of real estate licensed activities requiring a signed buyer-broker representation agreement.
The three new sections:
- Clarify the maximum length of the initial term and any optional renewal term of a buyer-broker representation agreement and the conditions upon which those terms commence.
- Makes expressly clear that the maximum initial and renewal term lengths set forth in the statute do not apply to buyer-broker representation agreements between real estate brokers and corporations, limited liability companies, and partnerships.
- Makes expressly clear that the statutory prohibition that buyer-broker representation agreements cannot renew automatically and that such renewals need to be effectuated via a writing that is signed by the parties.
- Clarify the timing of and creates a rebuttable presumption as to when it would be initially practicable for a buyer’s agent to enter into a buyer-broker representation agreement with a buyer as contemplated in the statute.
- Makes expressly clear that a buyer-broker representation agreement is only required if a real estate broker is performing services for or on behalf of a buyer of real property or an interest in real property for which a real estate license is required.
No public hearing. Comments may be submitted until August 12, 2025 to DRE.
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