Legislature To Consider Authorizing Real Estate Broker Licenses To LLCs
In California, real estate broker licenses are currently issued only to individuals and corporations. Limited liability companies need not, indeed may not, apply. This is a result of a compromise that was reached when California’s original limited liability company act was enacted. That prohibition was carried over to the current Revised Uniform Limited Liability Company Act:
“A domestic or foreign limited liability company may render services that may be lawfully rendered only pursuant to a license, certificate, or registration authorized by the Business and Professions Code, the Chiropractic Act, the Osteopathic Act, or the Yacht and Ship Brokers Act, if the applicable provisions of the Business and Professions Code, the Chiropractic Act, the Osteopathic Act, or the Yacht and Ship Brokers Act authorize a limited liability company or foreign limited liability company to hold that license, certificate, or registration.”
Cal. Corp. Code § 17701.04(b). Last week, Assembly member Tom Daly introduced AB 687 to authorize the licensing of LLCs as brokers under the Real Estate Law. This is not the first time that the legislature has considered doing so. As noted in this blog, a similar attempt was made three years ago.