CA AB687

Authorizes limited liability companies (LLCs) to be licensed as real estate brokers, with one designated member, manager, or officer able to engage in the business without additional fees, and additional fees required for each additional member, manager, or officer seeking to act as a broker.

Requires LLCs licensed as real estate brokers to maintain liability insurance with minimum aggregate limits of $1,000,000 for companies with 5 or fewer licensees, plus $100,000 for each additional licensee (capped at $5,000,000), and requires extended reporting endorsements for minimum 3 years upon dissolution.

Permits LLC brokers to operate without interruption under existing licenses in case of death or incapacity of sole designated broker-member, manager, or officer if notice and application are filed within 10 business days.

Designates members, managers, and officers of LLC brokers as subject to the same duties and responsibilities as licensed brokers, and establishes grounds for temporary suspension or permanent revocation of LLC broker licenses for failure to maintain required insurance.

Excludes administrative fines, civil penalties, criminal penalties, and cost recovery related to LLC brokers from continuous appropriation in the Real Estate Fund, making such funds subject to legislative appropriation instead.