C.A.R.-SPONSORED AB 2992 PASSES OUT OF KEY FISCAL COMMITTEE
Apart from the state’s budget process, there exist two key fiscal committees in the State Legislature – the Senate Appropriations Committee and the Assembly Appropriations Committee. Both Appropriations Committees have a unique feature called the Suspense File to which they temporarily send any bill that is determined to have a significant fiscal impact on the state. Votes regarding whether to hold or pass these bills are made during Suspense File hearings, which are held twice a year. Both Appropriations Committees held their final Suspense File hearings of this legislative session on August 15, 2024.
C.A.R.-sponsored AB 2992 (Nguyen) was placed in the Suspense File and unanimously passed out of the Senate Appropriations Committee during its Suspense File hearing.
AB 2992 mandates buyer-broker representation agreements for all real estate licensees in California. The bill would require such agreements to be signed as soon as practicable, but no later than the submittal of an offer to purchase property. The agreements are time limited to three months with three-month renewal options available. Mandatory buyer-broker agreements provide transparency and fairness regarding duties and agent compensation and will greatly enhance the buyer-broker agency relationship. AB 2992 will now head to the Senate Floor.
