To: The California State House
Oppose California AB 1059 (Dual Agency Brokerage)
Oppose California State Assembly Bill 1059, which would prohibit dual agency representation in CA commercial real estate transactions.
If passed, the bill will negatively impact the overall economy, especially small business owners that are tenants or buyers of real estate. It will limit their freedom of choice and result in increased fees paid to the commercial brokerage industry. The only group that stands to benefit from this bill are tenant rep-only brokerage firms.
Why is this important?
A new bill (AB 1059 Dual Agency), introduced to the CA State Assembly on March 30, 2017, will, if passed, prohibit dual agency brokerage representation in CA commercial real estate transactions. This would have a profoundly negative impact on the commercial real estate industry, in particular, it will affect small businesses who are tenants/buyers.
Although presented as a protection for tenant rights, the bill provides a significant benefit to the brokerage industry, specifically those firms that specialize in tenant/buyer representation. AB 1059 will negatively impact the overall economy, especially small business owners. It will limit the freedom of choice for the consumer and result in increased fees paid to the brokerage industry.
As a non-profit organization, representative of all parties in the commercial real estate industry in Southern CA, AIR CRE vehemently opposes the bill’s passing, and encourages its members and non-members in CA CRE to actively oppose the bill.
WINNERS & LOSERS OF AB 1059
• LOSERS: tenants/buyers of commercial real estate will no longer be able to work with any broker that that they wish. Forcing this group to either work with a tenant rep broker from a firm other than the listing firm, or represent themselves, will result in higher transactions fees and could stifle small business' ability to close transactions.
• NEUTRAL: landlords/sellers of real estate will be impacted the least by the bill, as the increased costs to close a deal will be passed on to tenants/buyers.
• WINNERS: tenant/buyer representation brokerage firms will win heavily if the bill is passed. By forcing tenants/buyers to either work with a tenant rep broker from a firm other than the listing firm (or represent themselves), tenant representation-only brokerage firms will be the recipients of additional commission fees, for services that are not wanted, but rather mandated by law.
Please add your voice to the petition and forward to your colleagues and friends. Oppose California AB 1059.