Facts About SB 1171
A Historic turning point for the commercial real estate industry
What You Need to Know
Hughes Marino President & CEO Jason Hughes pioneered SB 1171, a California broker agency disclosure law which 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.
The passing of this law is just the beginning in creating more transparency in commercial real estate transactions across the nation. Jason Hughes has also spearheaded Assembly Bill 1059 in California, which aims to prohibit either brokers or their agents from representing both the landlord and the tenant in a commercial real estate transaction. The passing of this bill will act as a catalyst to change the industry nationwide, protect tenants and force commercial brokers to abide by the same conflict of interest rules that have always applied to lawyers and other professionals.
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