Existing law imposes limitations on various contracts, including by prohibiting a contract or proposed contract for the provision of a consumer service by a licensee regulated by a licensing board from including a provision limiting the consumer’s ability to file a complaint with that board or to participate in the board’s investigation into the licensee.

Existing law, the Consumers Legal Remedies Act, makes unlawful specified unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer, including the passing off of goods or services as those of another. The act authorizes any consumer who suffers any damage as a result of the use or employment by any person of a method, act, or practice declared as unlawful under the act to bring an action against that person to recover or obtain certain remedies.

Existing law, the Real Estate Law, provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Department of Real Estate within the Business, Consumer Services, and Housing Agency. A willful violation of this law and other related real estate provisions is a crime.

This bill would enact the Residential Exclusive Listing Agreements Act. The bill would make it unlawful for an exclusive listing agreement, as defined, regarding single-family residential property, as defined, to last longer than 24 months from the date the agreement was made. The bill would also make it unlawful for a renewal of an exclusive listing agreement, as described, to last longer than 12 months from the date the renewal was made. The bill would make it unlawful to present for recording or filing, or otherwise attempt to record or file, with a county recorder an exclusive listing agreement of any duration or any memoranda or notice of the agreement. The bill would prohibit an exclusive listing agreement from renewing automatically and would require a renewal of an exclusive listing agreement to be in writing and be dated and signed by all parties to the agreement. The bill would make it unlawful to enforce or attempt to enforce an exclusive listing agreement that is made, or that is presented for recording or filing with a county recorder, in violation of these provisions.

This bill would provide that an exclusive listing agreement that is made, or that is presented for recording or filing with a county recorder, in violation of the above-described provisions is void and unenforceable. The bill would provide that a violation of the above-described provisions constitutes a violation under the Consumers Legal Remedies Act, as described. The bill would authorize a homeowner who entered into any such agreement to retain any consideration received. The bill would provide that a violation of these provisions by a licensed person, as described, is also a violation of the person’s licensing law. Because a violation of the bill’s provisions by certain licensees may be punished as a crime under their respective licensing laws, the bill would impose a state-mandated local program.

Existing law requires the county recorder to accept, upon payment of proper fees and taxes, for recordation certain instruments, papers, notices, or other documents. Existing law provides that a recorder is liable to an aggrieved party for the amount of damages if the recorder, among other things, neglects or refuses to record the instrument, paper, or notice within a reasonable time after receiving it, unless the document is unrecordable. Under existing law, a person who receives a form from the recorder determining the document is unrecordable is guilty of a misdemeanor if the person attempts to subsequently record the unrecordable document without an order from the court requiring recordation of the document.

This bill would make it unlawful to present for recording or filing, or otherwise attempt to record or file, with a county recorder an exclusive listing agreement of any duration or any memoranda or notice of such an agreement. The bill would state that a violation of this prohibition constitutes a violation of the above-described provisions. By expanding the scope of a crime and imposing limitations on the county recorder, the bill would impose a state-mandated local program. The bill would also provide that a violation of these provisions by a licensed person, as described, is also a violation of the person’s licensing law.

Because a violation of the bill’s provisions by certain licensees may be punished as a crime under their respective licensing laws, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.