When Investment Banks Can Sell Real Estate in Calif.
Business attorneys Christopher Froelich and Chris Gregores and Real Estate attorney Douglas Praw co-authored an article for Law360 examining California laws affecting investment banks that participate in transactions involving real estate. The authors explain that investment banks are commonly involved in merger and acquisition (M&A) or private equity transactions in which businesses are sold and real estate is one of the deal components. They advise that California law requires parties facilitating these transactions — such as brokers — hold a real estate license, and they caution that while most investment banks are licensed securities broker-dealers, many are not licensed real estate brokers. This article goes on to analyze relevant case law and sections in the California Business and Professions Code.
Summer Associate Christian Grossenbacher also contributed to the article.