< Back to News

Brokering New Ground in California Commercial Property

Download PDF

California’s new law is expected to discourage the practice of brokers representing both sides in a commercial real estate transaction.

By Eliot Brown

California commercial-property brokers are coming under the magnifying glass in California.

Last month, the state legislature passed a bill designed to discourage the practice of brokers representing both sides of a transaction in commercial-property leases and sales. The law requires brokers to fill out a form disclosing to the tenant or buyer when they also work for the seller, a practice that critics say sometimes occurs without disclosure, particularly on small deals.

Jason Hughes, chief executive of brokerage Hughes Marino, said he lobbied extensively for the legislation. Mr. Hughes, who represents tenants in lease deals, said the practice of working both sides without disclosure is common in California, often resulting in tenants paying more than they should. With the new law set to go into effect in January, Mr. Hughes predicts the added transparency will cause more brokers to stick to representing one side or the other.

“It makes it front and center,” Mr. Hughes said. “This is the beginning of two distinct groups—you either ‘rep’ landlords or you ‘rep’ tenants.”

This article originally appeared in The Wall Street Journal.

Jason Hughes is founder of Hughes Marino, an award-winning commercial real estate company with offices across the nation. A pioneer in the field of tenant representation, Jason has exclusively represented tenants and buyers for more than 30 years. Contact Jason at 1-844-662-6635 or jason@hughesmarino.com to learn more.

shaking hands
Previous Story

New Law Ensures That Brokers Disclose Roles

AEA ribbon cutting
Next Story

Albert Einstein Academies Charter Middle School Welcomes New Students