California’s commercial real estate broker agency disclosure law
What You Need to Know
SB 1171, the California broker agency disclosure law pioneered by Hughes Marino Chairman & CEO Jason Hughes, took effect on January 1, 2015. The law requires commercial real estate brokers to disclose to clients at the outset of their working relationship whether they represent the seller/landlord, the buyer/tenant, or both in any real estate transaction.
Commercial tenants should pay close attention to the disclosure form their brokers will ask them to sign, which explains the broker’s duties to the client as well as the risks of working with a broker who represents both tenants and landlords (known as a “dual agent”). Critically, a dual agent is not allowed to disclose confidential information between parties, which reduces them to the role of a simple messenger rather than a savvy negotiator.
Why SB 1171 Is a Victory for Tenants
Hughes Marino CEO Jason Hughes explains why he championed the bill, and what it means for commercial tenants.Read More
For Brokers: Get the Disclosure Form
Download a sample copy of the disclosure form that SB 1171 requires all brokers to present to their clients.Read More