Effective January 1, 2015, California Civil Code section 2079.13 will require commercial real estate agents and brokers to disclose proposed dual-agency roles to possible clients in writing before being hired.

Prior to enactment of this change only residential brokers and agents were required to make this written disclosure. Abuse became frequent among commercial brokers and agents who in some cases provided no disclosure of their indirect interests in the commercial properties they marketed. In many instances conflicts of interest were not disclosed in commercial real estate transactions. This law makes prior nondisclosure a violation of a statute and, thus, much simpler to prove, irrespective of whether the conflict was a real or potential conflict.

The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.