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HomeCorporations CodeCh. 1§ 25206 Broker Exemption For Real Estate Partnerships

§ 25206 Broker Exemption For Real Estate Partnerships

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 25206 Broker Exemption For Real Estate Partnerships

This law says a real‑estate broker who has a license can skip the rules in Section 25210 when they work with small, non‑corporate groups (like partnerships) that are set up only to buy, sell, or develop property and have 100 owners or fewer.

Key Takeaways

  • •The exemption only applies to brokers who are licensed by the Real Estate Commissioner.
  • •It works for partnerships, joint ventures, or similar groups that are not corporations and have 100 owners or fewer.
  • •The group must be created just to invest in or make money from real‑estate deals.
  • •Spouses count as one person when figuring out the 100‑person limit.

Example

Eight friends form a limited partnership to buy a duplex and rent it out. They hire a licensed broker to handle the purchase.

Because the partnership has fewer than 100 owners, is not a corporation, and exists only to invest in real estate, the broker does not have to follow the extra requirements of Section 25210 for this deal.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 25206 Broker Exemption For Real Estate Partnerships

A broker licensed by the Real Estate Commissioner is exempt from the provisions of Section 25210 when engaged in transactions in any interest in any general or limited partnership, joint venture, unincorporated association, or similar organization (but not a corporation) owned beneficially by no more than 100 persons and formed for the sole purpose of, and engaged solely in, investment in or gain from an interest in real property, including, but not limited to, a sale, exchange, trade, or development. An interest held by spouses shall be considered held by one person for the purposes of this section. (Amended by Stats. 2016, Ch. 50, Sec. 26. (SB 1005) Effective January 1, 2017.)

Last verified: January 10, 2026

Key Terms

brokerReal Estate CommissionerexemptSection 25210general or limited partnershipjoint ventureunincorporated association100 personsinvestment in or gain from an interest in real property

Related Statutes

  • § 25204 Investor Protection Exemptions
  • § 12242.5 Business Entity Definitions
  • § 12245 Definition Of Person
  • § 12301 Unincorporated Association Incorporation
  • § 174.5 Definition Of Other Business Entity

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 25206.
View Official Source