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AB 739

Common interest developments: managing agent fees.

2025-2026 Regular Session Introduced by Corey Jackson

AB 739 — Summary OverviewAB 739 would require the managing agent of a common interest development (CID) to hold a real estate broker license issued by the State of California. The

From committee: Do pass and re-refer to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 10. Noes 0.) (June 10). Re-referred to Com. on JUD.
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Bill Summary · AB 739

AB 739 — Summary

Overview

AB 739 would require the managing agent of a common interest development (CID) to hold a real estate broker license issued by the State of California. The bill sits within the framework of the Davis-Stirling Common Interest Development Act, which governs CIDs and allows associations to hire managing agents to handle development assets.

What the bill would do

  • Adds a new provision to the Civil Code (Section 5378): A managing agent of a common interest development must hold a California real estate broker license.
  • This is a licensing requirement, applying specifically to individuals or entities acting as managing agents for CIDs.

Key provisions and changes

  • Current framework: Under existing law, the board of a CID may hire a managing agent to oversee development assets. Prospective managing agents must disclose whether they hold relevant licenses or professional certifications, including a real estate license.
  • New requirement: Any managing agent for a CID must hold a state-issued real estate broker license.
  • Licensing standard: The license referred to is the Real Estate Broker license issued by the state, as defined by the Real Estate Law.

Background and context

  • The bill references the Davis-Stirling Act, which governs CID formation and operation and allows associations to hire managing agents to handle assets and operations.
  • The Real Estate Law defines a real estate broker as a person who, for compensation, assists with buying, selling, or renting real property.

Who would be affected

  • Prospective and current CID managing agents and management firms.
  • Common interest developments and their associations, boards, and managers.
  • Potential effect on vendors and service providers who currently act as managing agents but do not hold a broker license.

Procedural and timeline aspects

  • Introduced: February 18, 2025.
  • Status: Referred to Assembly Committees on Housing and Community Development (H. & C.D.) and Business and Professions (B. & P.).
  • Legislative actions:
    • February 18, 2025: Read first time, to print.
    • February 19, 2025: From printer; may be heard in committee March 21.
    • March 17, 2025: Referred to Coms. on H. & C.D. and B. & P. (further action pending in committees).
  • Fiscal note: The digest indicates no appropriation; a fiscal committee review is noted.

Potential impacts and considerations

  • Professionalization and consumer protection: Requiring a broker license could enhance accountability andQualifications for CID management.
  • Transition and cost considerations: CID management firms and boards may face out-of-pocket costs to obtain broker licenses for their agents, and there may be a transition period to ensure compliance.
  • Availability of licensed managers: Depending on licensing requirements and supply, some CID managers may need to hire licensed brokers or adjust staffing.

Bottom line

AB 739 would mandatorily require CID managing agents to hold a California real estate broker license, strengthening licensing standards for those who manage common interest developments. The bill is in its early legislative stage, with referrals to two committees and no specified funding attached.

Compiled from official sources — confirm details with the bill’s official record.

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