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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. 

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About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm
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Keith Paul Bishop is a partner in Allen Matkins' Corporate and Securities practice group, and works out of the Orange County office. He represents clients in a wide range of corporate transactions, including public and private securities offerings of debt and equity, mergers and acquisitions, proxy contests and tender offers, corporate governance matters and federal and state securities laws (including the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act), investment adviser, financial services regulation, and California administrative law. He regularly advises clients...

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