For Want Of Real Estate License A Contract Is Voided

Published date27 April 2022
Subject MatterCorporate/Commercial Law, Real Estate and Construction, Contracts and Commercial Law, Real Estate
Law FirmAllen Matkins Leck Gamble Mallory & Natsis LLP
AuthorMr Keith P. Bishop

Yesterday, I discussed the confused characterization of the defendant in Carbon Crest, LLC v. Tencue Productions, LLC, 2022 U.S. Dist. LEXIS 66676. The case is nonetheless a good reminder that those who sell "business opportunities" fall within the definition of a broker under California's Real Estate Law:

A real estate broker within the meaning of this part is a person who, for a compensation or in expectation of a compensation, regardless of the form or time of payment, does or negotiates to do one or more of the following acts for another or others:

(a) Sells or offers to sell, buys or offers to buy, solicits prospective sellers or buyers of, solicits or obtains listings of, or negotiates the purchase, sale, or exchange of real property or a business opportunity.

Cal. Bus. & Prof. Code ' 10131. A "business opportunity" is defined as including "the sale or lease of the business and goodwill of an existing business enterprise or opportunity". Cal. Bus. & Prof. Code ' 10003.

In CarbonCrest, the plaintiff sued to enforce a Business Advisory Agreement...

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