The California Legislature is considering a bill that could significantly impact the CRE industry in the state. Assembly Bill 1059 would ban dual agency relationships in all CRE transactions.
If the measure passes, agents wouldn’t be able to act in a dual role, nor would different individuals in the same firm be able to represent both a seller and buyer in the same transaction.
Proponents say the bill will level the playing field for tenants and buyers, by eliminating potential conflicts of interest.
The bill’s potential consequences may have the opposite effect, reports AIR CRE. The member-owned CRE network opposes the bill for such reasons as:
- It will force some buyers and sellers to pay commission fees for services they may not want.
- These rules may be most burdensome to small businesses, which may have a difficult time finding a broker interested in representing them because the commissions are likely to be small.
- Lease renewals for these small businesses may also become more adversarial, as tenants are represented by these independent brokers.
For comments, questions or concerns, please contact Dennis Kaiser