SECTIONS 1086-1090 - California Statutes

CIVIL CODE

SECTION 1086-1090

1086. As used in this article, the following terms have the
meanings stated in this section:
(a) "Property" means real property or a mobilehome, as defined in
Section 18008 of the Health and Safety Code.
(b) "Sell" and "sale" include lease and exchange.
(c) "Buyer" includes a lessee in case of a lease and the party
with whom property is exchanged in case of an exchange.
(d) An "agent" is one authorized by law to act in that capacity
for that type of property, and is licensed as a real estate broker
under Chapter 3 (commencing with Section 10130) of Part 1 of Division
4 of the Business and Professions Code or is a licensee, as defined
in Section 18006 of the Health and Safety Code.
(e) An "appraiser" is one licensed or certified under Part 3
(commencing with Section 11300) of Division 4 of the Business and
Professions Code.
(f) A "listing" is a written contract between an owner of property
and an agent by which the agent has been authorized to sell the
property or to find or obtain a buyer.
A listing may be any of the following:
(1) An "exclusive right to sell listing" is a listing whereby the
owner grants to an agent, for a specified period of time, the
exclusive right to sell or to find or obtain a buyer for the
property, and the agent is entitled to the agreed compensation if
during that period of time the property is sold, no matter who
effected the sale, or the listing agent receives and presents to the
owner any enforceable offer from a ready, able, and willing buyer on
terms authorized by the listing or accepted by the owner. The
exclusive right to sell listing may provide for compensation of the
listing agent if the property is sold within a specified period after
termination of the listing to anyone with whom the agent has had
negotiations before that termination.
(2) An "exclusive agency listing" is the same as an "exclusive
right to sell listing," except that the owner reserves the right to
sell directly but not through any other agent and, in that event,
without obligation to pay compensation to the agent.
(3) An "open listing" is a listing which grants no exclusive
rights or priorities to the listing agent, and a commission is
payable to the agent only if the agent procures and presents to the
owner an enforceable offer from a ready, able, and willing buyer on
the terms authorized by the listing or accepted by the owner, before
the property is otherwise sold either through another agent or by the
owner directly and before the listing expires by its terms or is
revoked.
(g) A "listing agent" is one who has obtained a listing of
property of the kind in respect of which he or she is authorized by
law to act as an agent for compensation.
(h) A "selling agent" is an agent participant in a multiple
listing service who acts in cooperation with a listing agent and who
sells, or finds and obtains a buyer for, the property.
(i) "Sold" includes leased and exchanged. A property is sold when
a legally binding commitment to sell the property comes into
existence.

1087. A multiple listing service is a facility of cooperation of
agents and appraisers, operating through an intermediary which does
not itself act as an agent or appraiser, through which agents
establish express or implied legal relationships with respect to
listed properties, or which may be used by agents and appraisers,
pursuant to the rules of the service, to prepare market evaluations
and appraisals of real property. If an open listing is placed in the
multiple listing service, the total compensation that the owner is to
pay shall go to the selling agent who procures an enforceable offer
from a ready, able, and willing buyer on the terms accepted by the
owner. An open listing need specify no compensation to the selling
agent, but may state that the compensation is to be negotiated
between the selling agent and the owner.

1088. A listing may not be placed in a multiple listing service
unless authorized or directed by the owner in the listing.
If an agent or appraiser places a listing or other information in
the multiple listing service , that agent or appraiser shall be
responsible for the truth of all representations and statements made
by the agent or appraiser of which that agent or appraiser had
knowledge or reasonably should have had knowledge to anyone injured
by their falseness or inaccuracy.

1089. An open listing may contain an agreement by the owner to pay
the listing agent compensation in any amount, at any time, and for
any services, other than for selling the property or procuring or
finding a buyer, as the agreement may specify.

1089.5. Subject to the limitations, conditions, and requirements of
Chapter 18 (commencing with Section 10000) of Part 5 of Division 7
of the Probate Code, this article applies to property defined in
Section 1086 that is covered by a contract described in Section 10150
of the Probate Code.

1090. Nothing in this article shall preclude a listing agent from
also being the selling agent.