Calif. Civil Code §2079.13
Amended by S.B. 1171
Effective date: January 1, 2015
The agency law disclosure and agency confirmation provision are to be provided by real estate brokers to principals on all nonresidential real estate purchases, and nonresidential lease transactions with lease terms longer than one year. [See updated RPI Form 305: Agency Law Disclosure]
Editor’s note — The California Association of Realtors (CAR) opposed this law, stating that most nonresidential real estate deals involved sophisticated principals and thus, additional disclosures were not required.
Despite the alleged “sophistication” of nonresidential real estate principals, the bill author pointed out the asymmetry of information existing between savvy industry professionals who represent big commercial landlords, and, say, a business owner tenant who only negotiates a lease once every five years.