California Code of Regulations
Title 10 - Investment
Chapter 6 - Real Estate Commissioner
Article 21 - Advance Fee Agreements
Section 2970 - Advance Fee Materials

Universal Citation: 10 CA Code of Regs 2970

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) A person who proposes to collect an advance fee as defined in Section 10026 in the Code shall submit to the Commissioner not less than ten calendar days before publication or other use, all materials to be used in advertising, promoting, soliciting and negotiating an agreement calling for the payment of an advance fee including the form of advance fee agreement proposed for use.

(b) Material used in advertising, promoting, soliciting and negotiating an advance fee agreement shall not be approved if it:

(1) Includes any representation which is false, misleading or deceptive.

(2) Does not set forth a specific, complete description of the services to be rendered for the advance fee.

(3) Does not set forth the total amount of the advance fee along with the date on which the fee shall become due and payable.

(4) Contains any provision which purports to relieve or exempt the person collecting the advance fee from an obligation to fulfill verbal commitments and representations made by retained broker associates, retained salespersons, employees and agents of the person contracting for the advance fee.

(5) Contains any provision which purports to give a guarantee that the real property or business opportunity in question will be purchased, leased or exchanged or that a loan secured by real property will be obtained as a result of the services rendered by the person collecting the advance fee.

(6) Does not set forth a definite date for full performance of the services promised under the advance fee agreement.

(c) Not less than 10-point type shall be used in advance fee agreements.

1. New Article 21 (Sections 2970 through 2974) filed 9-18-59 as an emergency; effective upon filing (Register 59, No. 16).
2. Certificate of Compliance--Sec. 11422.1, Gov. Code for Article 21 (Sections 2970-2974), filed 12-15-59 (Register 59, No. 21).
3. Repealer and new section filed 7-1-83; effective thirtieth day thereafter (Register 83, No. 30).
4. Amendment of subsection (a) filed 4-1-93; operative 5-1-93 (Register 93, No. 14).
5. Amendment of subsection (b)(4) filed 1-21-2022; operative 4-1-2022 (Register 2022, No. 3).

Note: Authority cited: Section 10080, Business and Professions Code. Reference: Sections 10026 and 10085, Business and Professions Code.

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