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California real estate law is clearly isolated when it comes to limited liability companies. The law allows corporations to license real estate brokers, but limited liability companies are not granted such a license. This distaste for LLCs dates back to California’s first LLC law. The law provides that “a limited liability company may, if applicable to the business regulations, provide services that can only be lawfully provided pursuant to a license, certificate, or registration authorized by the Business and Professions Law.” Masu. and professional regulations permit limited liability companies to hold their licenses, certificates, or registrations. ” Ex-California. Corporation Regulations § 17002(c). This limitation is currently found in Corporations Code Section 17701.04(b). Attempts have been made over the years to amend the Real Estate Act (codified in the Business & Professions Act), but those efforts have been in vain. look Congress to consider granting real estate broker licenses to LLCs.
Other provisions of real estate law also disadvantage LLCs. For example, under Business and Professions Code Section 10131, a “real estate broker” is defined as a “real estate broker” who engages in one or more enumerated transactions “on behalf of another” for compensation or expectation of compensation, regardless of the form or timing of payment. Defined as a person who performs an act. . This potentially includes where an officer of the general partner of a corporation or partnership is deemed to be performing any of the listed acts on behalf of another corporation with respect to the assets of the corporation or partnership. There is a characteristic (In other words, corporation or partnership). Section 10133(a) provides that the acts described in Section 10131 “require a real estate broker’s license if they are performed by an authorized officer of a corporation or a general partner of a partnership with respect to real property that he or she owns. This situation is addressed by specifying that the The act was not performed by the officer or partner in anticipation of special compensation, was leased by the corporation or partnership, respectively, or was done in connection with a proposed purchase or lease of real property by the corporation or partnership, respectively; . ” The law does not address LLC managers, managing members, or officers. This may be due to the fact that this law predates California’s first LLC law, but over the last 30 years the law has been updated to refer to LLCs. That doesn’t explain why it wasn’t there.
The content of this article is intended to provide a general guide on the subject. You should seek professional advice regarding your particular situation.
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