California’s recent legislation, AB 2992, has made significant changes to the relationship between real estate brokers and “buyers” (including some tenants / lessees). It went into effect on January 1, 2025. AB 2992 includes the following changes:

1. Requires a written “buyer broker agreement” be signed before making an offer on real property (“buyer” includes a tenant / lessee).
2. Applies to all types of real property including commercial, residential, and land.
3. Applies to the sale of real property and to leases exceeding one year.
4. The “buyer broker agreement” can last no more than three months, with no automatic renewals, unless the “buyer” is a corporation, LLC, or partnership.
5. The “buyer broker agreement” must state: (a) the compensation to be paid to the broker, (b) the services to be provided, (c) when payment is due, and (d) when termination occurs.
6. Failure to comply with the requirements above renders the agreement void and may subject the broker to disciplinary action.

To read it as a 3-min blog

To watch is as a video (coming soon)

📌 Visit our website: https://theivygroup.com/

📌 Subscribe to our newsletter: https://theivygroup.substack.com/

When you need to sell, buy, or lease a commercial property, or simply want to have an investment consultation, the Ivy Group is ready to help you reach your goals with more than 100 years of combined experience and expertise in real estate, investment, technology and engineering. Contact us with your next real estate needs:https://theivygroup.com/contact-us/

Copyright ©️ 2025 by Tim Vi Tran. All rights reserved.