Unit 15

Section 10141.5 Recording Trust Deed

A broker (or escrow company) must record a trust deed created on the sale of a property within one week of closing.

Section 10142 Delivery of Agreement

A broker must give a copy of any contract to the party signing it at the time that it is signed.

Section 10176(m) Violating Other Laws

Licensee violated any part of the licensing law, if it occurs within the scope of that person's duties as a licensee.

Real Estate Licensing

brokers and salespeople often act in an agency capacity, the state places strict requirements in the form of real estate licensing on those who wish to practice real estate.

real estate sales associate

term used to refer to employees of a broker.

tax debtors

who owe $100,000 or more in delinquent taxes.

obligors

who owe child support payments. A child support obligor may be issued a 150-day temporary license. During the 150 days, a person must show DRE proof that the delinquency is cleared and that he or she has been removed from the list, so that a permanent license can be issued. In addition, a license may be suspended if a licensee's child support remains unpaid.

Real Estate License Exemptions

• A person who deals only with his or her own property • A corporation that performs any of the specified activities through one of its regular officers, who must receive no special compensation for doing so • Anyone holding a duly executed power of attorney from the owner of property • An attorney-at-law performing services in the regular course of business as an attorney • Resident managers of apartment buildings and complexes or their employees • Short-term (vacation) rental agents • Employees of certain lending institutions • Clerical employees of real estate brokers for specific, limited functions • Licensed personal property brokers • Any film location representative employed to arrange for the use of real property for photographic purposes • Cemetery authorities • Certain collectors of payments for lenders or on notes for owners in connection with loans secured directly or collaterally by liens on real property, provided such collectors annually meet exemption criteria • Any receiver, trustee in bankruptcy or person acting under order of any court • Any trustee selling under a deed of trust • Lenders making loans guaranteed or insured by an agency of the federal government • An employee of lending institutions, pension trusts, credit unions, or insur- ance companies, in connection with loans secured by liens on real property or a business opportunity • Escrow agents collecting funds in connection with loans secured by liens on real property when the funds are deposited in the escrow agent's trust account

Eligibility Requirements for Obtaining a License

• Be at least 18 years old • Provide a social security or tax ID number • Be honest and truthful • Complete real estate course(s) as required by law • Apply for and pass the state qualifying examination • Apply for the license

Real Estate Commissioner

(Commissioner), appointed by the Governor, determines administrative policy, and enforces the provisions of the Real Estate Law and the Subdivided Lands Law to ensure that the public is protected when dealing with licensees and when purchasing subdivided real property. To be appointed, the designee must have been a real estate broker for five years and actively engaged in the real estate business in California. Responsibilities of the Real Estate Commissioner • Screen and qualify applicants for license • Issue, restrict, suspend, or revoke real estate licenses • Examine complaints against licensees • Pursue formal action against licensees, where appropriate • Monitor real property securities transactions • Regulate prepaid rental listing services • Regulate specific aspects of the sale of subdivisions

Fictitious Business Name

(DBA-doing business as). The broker must apply to DRE and attach a certified copy of the Fictitious Business Name Statement that is filed with the county clerk. Filing a Fictitious Business Name Statement is good for 5 years from December 31st of the year filed. Each fictitious business name is an addition to the existing license, and it will expire at the same time as the license. [B&P §10159.5 and Reg. 2731] Reasons Why the Commissioner Might Deny a License with a DBA: • The DBA is misleading or would constitute false advertising. • The DBA implies a partnership or corporation when a partnership or corporation does not exist. • The DBA includes the name of a real estate salesperson. • The DBA is the name formerly used by a licensee whose license has since been revoked.

Section 10177(h) Failure to Supervise Salespersons

A broker is subject to disciplinary action if the broker, or the officer designated by a corporate broker licensee, fails to exercise reasonable supervision and control over the activities of the broker's salespeople.

Sections 10137 & 10138 Employing or Paying an Unlicensed Person

A broker may not pay a commission to an unlicensed person, except to a broker of another state. A licensed salesperson may not accept compensation from anyone except his or her employing broker. The broker may be fined $100.

out-of-state applicants

A person does not have to live in California in order to become licensed in this state, but you must take the appropriate written examination in California and meet all other requirements. California has no reciprocity with any other state to allow a waiver of any of the requirements to obtain a license. Out-of-state residents must file an irrevocable Consent to Service of Process with the California Department of Real Estate. Brokers must maintain a California business address if engaging in business in California, and salespeople must be licensed with a California broker if engaging in business in California.

Real Estate Fund

All fees charged and collected from the licensing of persons or from the regulation of transactions. The money is used by the Commissioner to carry out the provisions of the Real Estate Law. This includes running the Department of Real Estate and paying salaries to the Commissioner and his or her deputies, clerks, and assistants. Part of the fees collected in the Real Estate Fund is set aside into two separate accounts for education and for recovery.

continuing education

Each time brokers and salespeople renew their licenses—every 4 years—they must present evidence of completing the required continuing education (CE) courses within the four-year period immediately preceding license renewal.

Mortgage Loan Originator (MLO)

Endorsement (MLO Endorsement) must be obtained before a real estate licensee can solicit or originate a loan application, or negotiate or offer to negotiate any residential mortgage loans.

accusation

If it appears that the complaint is of a serious nature and that a violation of law has occurred, an accusation is filed, and there may be a formal hearing, which could result in suspension or revocation of the license.

renewing real estate license

In general, both types of licenses may be renewed by submitting the appropriate fee and application, along with evidence of completion of 45 hours of CalBRE- approved continuing education courses. Both broker and salesperson licenses are valid for four years and may be renewed at that time upon payment of a fee and evidence that the requirements for continuing education have been met.

Section 10176(k) Failing to Disburse Mortgage Funds

Licensee (when acting as a lender) failed to disburse funds in accordance with a commitment to make a mortgage loan that is accepted by the applicant.

Section 10176(e) Commingling

Licensee commingled funds. Commingling is the mixing of the principal's funds with the broker's own money. Conversion is misappropriating and using principal's funds.

Section 10176(g) Secret Profit

Licensee made a secret profit by failing to disclose the full amount of the licensee's compensation.

Section 10177(e) Misuse of Trade Name

Only active members of the National Association of REALTORS® may use the term REALTOR®. It is unlawful and unethical to misuse the terms REALTOR® and/or Realtist or any trade name or insignia of which the licensee is not a member.

Initial Renewal

Real estate brokers and salespeople renewing an original license for the first time must complete 45 clock hours of DRE-approved CE courses. The required courses are 3 hours each of Agency, Ethics, Fair Housing, Risk Management, and Trust Fund Handling. In addition, 30 more CE hours must be completed, of which 18 hours must be in the consumer protection category. The remaining clock hours required to complete the 45 hours of continuing education may be related to either consumer service or consumer protection courses. Beginning January 1, 2016, brokers must complete a 3-hour course in Management and Supervision as part of the 45-hour requirement.

Section 10141.6 Notification of Escrow Activities

Real estate brokers who handle 5 or more escrows in a calendar year or whose escrow activities exceed $1 million in a calendar year must file a report with DRE. The report documents the number of escrows conducted and the dollar volume escrowed during the calendar year.

Section 10175.2(a) Monetary Penalty in Lieu of Suspension

The Real Estate Commissioner may permit a real estate licensee to pay a monetary penalty to the department in lieu of an actual license suspension.

Real Estate Examination

The purpose of the real estate license examination is to make sure consumers are protected in all transactions where they are to be represented by an agent. License applicants must have knowledge of the English language, including reading, writing, and spelling; and of arithmetical computations common to real estate and business opportunity practices. The exam tests an applicant's general knowledge of real estate, appraisal, finance, forms, and other fundamentals of the industry. The subject matter covered in the examination is based on laws and procedures appropriate within California.

Section 10178 Broker Must Report Discharge of Salesperson for Violation

When any real estate salesperson is discharged by his or her employer for a violation of any of the provisions of the Real Estate Law, a certified written statement of the facts with reference thereto shall be filed forthwith with the Commissioner by the employer. If the employer fails to notify the Commissioner as required by this section, the Commissioner may temporarily suspend or permanently revoke the real estate license of the employer, in accordance with the provisions of this part relating to hearings.

subsequent renewals

all real estate brokers and salespersons must complete 45 clock hours of DRE-approved continuing education. The licensee may take EITHER the six mandatory 3-hour CE courses in Agency, Ethics, Fair Housing, Management and Supervision, Risk Management, and Trust Fund Handling OR one 8-hour Survey Course that covers the six mandatory subjects. The balance of the required hours must include at least 18 hours of consumer protection topics. The remaining clock hours required to complete the 45 hours of continuing education may be related to either consumer service or consumer protection courses.

formal hearing

held according to the Administrative Procedures Act. The accusation or statement of issues is served upon the affected licensee. In the hearing, the Commissioner is the complainant and brings the charges against the licensee. The licensee, known as the respondent, may appear with or without an attorney. The Commissioner's counsel presents the case to an administrative law judge who issues a proposed decision based upon the findings.

fingerprints

must be submitted electronically to the state Department of Justice (DOJ) using the Live Scan Program, which takes and transmits fingerprints to the DOJ and the Federal Bureau of Investigation (FBI).

certified tax list

that list the names of the top 500 tax debtors who owe $100,000 or more in delinquent taxes. If the name of an applicant for licensure or a real estate licensee is on either of the certified lists, DRE will send a preliminary notice to the applicant or licensee of its intent to withhold issuance or renewal of the license, or to suspend a current license. The notice advises the licensee that any license suspended due to delinquent taxes will remain suspended until DRE receives a release from the BOE or FTB to reinstate the license. However, DRE may issue a 90-day temporary license to an applicant whose name is on a certified list if the applicant is otherwise eligible for a license. [B&P Code §494.5]

restricted license

type of probationary license issued when a license has been suspended, revoked, or denied after a hearing. Typically, restrictions are placed by term (one month, three months, etc.), employment by a particular broker (for a salesperson), limitation to a certain type of activity, requiring detailed reports of each transaction, requiring the filing of a surety bond, or any combination. License Facts: • Brokers and salespeople are both licensees. • Brokers are agents of the principal. • Salespeople are agents of their broker (not the principal). • A salesperson must be employed by a broker to be paid. • A salesperson can only be paid by his or her employing broker.

Acts Requiring a Real Estate License

• Soliciting sellers • Soliciting buyers • Negotiating sales • Negotiating leases • Soliciting for tenants or rentals • Negotiating sales contracts • Negotiating loans • Negotiating a promissory note secured by real property • Negotiating exchanges

Section 10141 Selling Price Disclosure

A broker must notify the buyer and the seller of the selling price within one month after completion of the sale. It is usually done by the escrow company.

Section 10148 Document Retention

A broker must retain the following documents for 3 years from the date of the closing or, if the transaction is not closed, from the date of the listing: listings, deposit receipts, cancelled checks, trust records, disclosure documents, Mortgage Loan Disclosure Statements, correspondence, email, and other related documents. The requirement does not include electronic messages of an ephemeral nature such as text messages, instant messages, or tweets. [Civil Code §1624(d)]. The Department of Real Estate can suspend or revoke the license of any real estate licensee who knowingly destroys, alters, conceals, mutilates, or falsifies any of the documents that are required to be retained.

Branch Office License

A broker who maintains more than one place of business must apply for a branch office license for each location. The application for a branch office license must state the name of the person and the location of the place of business. [B&P §10163]

corporate real estate license

A broker who maintains more than one place of business must apply for a branch office license for each location. The application for a branch office license must state the name of the person and the location of the place of business. [B&P §10163]

partnership

A broker who maintains more than one place of business must apply for a branch office license for each location. The application for a branch office license must state the name of the person and the location of the place of business. [B&P §10163]

Tax Identification Requirement

A licensee failing to provide the federal employer identification number, or the individual taxpayer identification number or social security number shall be reported by DRE to the Franchise Tax Board. [B&P Code30 (b)]. DRE cannot process an application for an initial license unless the applicant provides its federal employer identification number, or individual taxpayer identification number or social security number where requested on the application. [B&P Code 30(c)].

Individual broker License

A real estate broker license allows a licensee to run a brokerage business under his or her own name or under a fictitious business name.

Section 10177.3 Misrepresent Price Opinions

A real estate licensee must not knowingly or intentionally misrepresent the value of real property or provide an opinion of value of residential real property to a lender wherein the licensee has an economic interest in the property.

Section 10177.4 Referral of Customers for Compensation

A real estate licensee must not receive a commission, fee, or other consideration as compensation or inducement for referral of customers to any escrow agent, structural pest control firm, home protection company, title insurer, or controlled escrow company.

Section 10140.6 Disclosure of Licensed Status in Advertising

Advertisements placed in newspapers, periodicals, mailers, or the like by real estate agents for any activity that requires a real estate license must also include a designation disclosing that the agent is performing acts that require a real estate license. [§10140.6 (a)]. The use of the terms broker, agent, REALTOR®, loan correspondent or the abbreviations "bro.", "agt.", or other similar terms or abbreviations is deemed sufficient identification to fulfill the designation requirement. [Reg. 2770.1]. A real estate licensee must disclose his or her eight digit license identification number and the unique identifier if the licensee is a MLO on all solicitation materials intended to be the first point of contact with consumers and on real property purchase agreements when acting as an agent in those transactions. Solicitation materials include items such as business cards, stationery, and advertising fliers, but exclude advertisements in print or electronic media and "for sale" signs. [§10140.6 (b) and Reg. 2773(a)].

Applying for the license

After passing the state exam, the applicant may apply for the salesperson or broker license within one year of the examination date. Unless you are currently licensed as a salesperson or hold a real estate license that expired less than two years ago, there are other documents you will need to include with your license application. You will need to submit one set of classifiable fingerprints, provide a social security or tax ID number, and, if you are an out-of-state applicant, you must include an irrevocable Consent to Service of Process.

Section 10140.5 Name of Broker

An advertisement offering to help a person file an application to purchase or lease government-owned land (State or Federal) must include the name of the broker and that he or she is a licensed California real estate broker.

broker license

An applicant for an original real estate broker license must meet specific education and experience standards. A broker candidate must complete 8 approved real estate courses. In addition, a broker candidate must also have 2 years of full-time licensed real estate experience within the past 5 years or the equivalent. Acceptable equivalents include a four-year degree with a major or minor in real estate from an accredited college.

broker associate

Any broker who places his or her license with an employing broker is a broker associate and must have a written employment agreement. These sales associates are agents of their employing broker—not the buyer/seller or the lessor/lessee. Therefore, brokers are legally responsible for all the business actions of their employees.

Types of Real Estate Licenses

Any person who wants to engage in the real estate business and act as a real estate broker or real estate salesperson within the state of California must obtain a license from the Department of Real Estate (DRE). Currently, DRE issues real estate broker and salesperson licenses for a 4-year period. A license obtained by fraud, misrepresentation, or deceit may undergo suspension by the Commissioner, without a hearing within 90 days after its issuance.

Section 10185 Violations Are Misdemeanors

Any person, including officers, directors, agents, or employees of corporations, who willfully violates or knowingly participates in the violation of this division shall be guilty of a misdemeanor punishable by a fine not exceeding $10,000, imprisonment in the county jail not exceeding six months, or a fine and imprisonment.

Section 10182 Reinstatement Examination

As a condition to the reinstatement of a revoked or suspended license, the Commissioner may require the applicant to take and pass a qualifying examination.

Section 10177.5 Fraud in a Civil Action

If a final judgment is obtained in a civil action against any real estate licensee upon grounds of fraud, misrepresentation, or deceit with reference to any transaction for which a license is required, the commissioner may, after hearing, suspend or revoke the license of such real estate licensee.

Section 10177(f) Conduct Warranting Denial of License

Licensee conducted himself or herself in a manner that would have warranted the denial of his or her application for a real estate license. This is a general section of the Real Estate Law. Almost any act involving a crime or dishonesty will fall within this section including the denial or suspension of a license issued by another government agency.

Section 10177(g) Negligence or Incompetence

Licensee demonstrated negligence or incompetence while performing activities for which a real estate licensee is required.

Section 10176(d) Dual Agency

Licensee did not inform all principals that he or she was acting as agent for more than one party in a transaction.

Section 10176(i) Dishonest Dealing

Licensee engaged in activities that constitute fraud or dishonest dealing.

Section 10177(j) Dishonest Dealing

Licensee engaged in conduct which constitutes fraud or dishonest dealing.

Section 10177(o) Failure to Disclose Conflict of Interest

Licensee failed to disclose to the buyer of real property, in a transaction in which the licensee is an agent for the buyer, the nature and extent of a licensee's direct or indirect ownership interest in that real property.

Section 10176(j) Signatures of Prospective Purchasers

Licensee failed to obtain a written authorization to sell from a business owner before securing the signature of a prospective purchaser to any such agreement.

Section 10176(f) Definite Termination Date

Licensee failed to specify a termination date on all exclusive listings relating to transactions for which a real estate license is required.

Section 10176(l) Delaying the Closing of a Mortgage Loan

Licensee intentionally delayed the closing of a mortgage loan for the sole purpose of increasing interest, costs, fees, or charges payable by the borrower.

Section 10176(b) False Promise

Licensee made false promises. A false promise is an incorrect statement about what someone is going to do in the future.

Section 10176(a) Misrepresentation

Licensee made substantial misrepresentations. A misrepresentation is a false statement of fact.

Section 10177(i) Misuse of Government Employment

Licensee misused government employment to gain access to records in a manner that violates the confidential nature of records.

Section 10177(b) Convictions

Licensee or applicant entered a plea of guilty or nolo contendere (no contest) or was found guilty of, or was convicted of a felony or a crime which involves moral turpitude and is substantially related to the qualifications, functions, or duties of a real estate licensee. Moral turpitude includes perjury, embezzlement, robbery, murder, and other base or vile acts.

Section 10177(a) Obtaining a License by Fraud

Licensee or applicant made material misstatements of fact in an application for a license and in those instances where licenses have been procured by fraud, misrepresentation, or deceit.

Section 10176(c) Continued Misrepresentation

Licensee pursued a continued and flagrant course of misrepresentation or making of false promises.

Section 10177(l) Inducement of Panic Selling

Licensee solicited or induced the sale, lease, or the listing for sale or lease of residential property on the grounds of loss of value, increase in crime, or decline in the quality of schools due to the present or prospective entry into the neighborhood of people of another race, color, religion, ancestry, or national origin. This is also called blockbusting or panic peddling.

Section 10177(k) Restricted License Violation

Licensee violated any of the terms, conditions, restrictions, and limitations contained in any order granting a restricted license.

Section 10177(q) Violation of Foreclosure Laws

Licensee violated or failed to comply with provisions of Civil Code, §2290 et. seq. that deal with foreclosures and mortgage foreclosure consultants.

Section 10177(p) Violation of Corporate Securities Law

Licensee violated provisions of the Corporate Securities Law (B&P Code, Article 6, §10237).

Section 10177(n) Violation of Corporations Code

Licensee violated provisions of the Corporations Code or of the regulations of the Commissioner of Corporations relating to securities as specified by the Corporations Code.

Section 10177(m) Violation of Franchise Investment Law

Licensee violated provisions of the Franchise Investment Law or any regulations of the Corporations Commissioner Franchise Investment Law.

10176.5(a) Real Estate Transfer Disclosure Statement Violations

Licensee willfully or repeatedly violated any of the provisions of the Transfer Disclosure Statement provisions.

Section 10177(d) Violations of Other Sections

Licensee willfully violated any of the other sections of the Real Estate Law, the Regulations of the Commissioner, and the subdivision laws.

Section 10176(h) Listing-Option

Licensee with both a listing and an option to buy on a property failed to inform the principal of the amount of profit the licensee would make and failed to obtain the written consent of the principal approving the amount of such profit, before the licensee exercised the option.

Section 10177(c) False Designations

Licensees misrepresented and/or made false statements about their education, their special education, their credentials and professional designations.

Section 10140 False Advertising

Real estate licensees who knowingly authorize or publish, distribute, or circulate any written statement that is false or fraudulent regarding subdivided lands or government patents, are guilty of a public offense. Punishment includes a $1,000 fine, imprisonment up to one year, or both. Additionally, real estate licensees may have their license revoked by the Commissioner.

Section 10177: Violations When Not Necessarily Acting as an Agent

The Commissioner may suspend or revoke the license of a real estate licensee, delay the renewal of a license of a real estate licensee, or may deny the issuance of a license to an applicant, who has done any of the following, or may suspend or revoke the license of a corporation, delay the renewal of a license of a real estate licensee, or deny the issuance of a license to a corporation, if an officer, director, or person owning or controlling 10% or more of the corporation's stock has done any of the following:

Section 10176: Violations When Acting as an Agent in a Real Estate Transaction

The Commissioner may upon his or her own motion, and shall upon the verified complaint in writing of any person, investigate the actions of any person engaged in the business or acting in the capacity of a real estate licensee within this state. He also may temporarily suspend or permanently revoke a real estate license at any time where the real estate licensee, in performing or attempting to perform any of the acts within the scope of this chapter, has been guilty of any of the following:

formal hearing process

The Commissioner must follow the established legal procedures found in the Administrative Procedure Act to discipline licensees under the formal hearing process. Some violations may result in civil injunctions, criminal prosecutions, or substantial fines.

Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act).

The SAFE Act is intended to provide uniform national mortgage loan originator licensing standards, which will require minimum licensing and education. It is also designed to create a comprehensive national licensing database to enable government and consumers to track loan originators and help prevent fraud.

Applying for the Examination

The applications and fee schedule for both the sales and broker license examination can be obtained from the DRE website. A person has two years from the date the application is received to complete all qualifications and take the examination. After the two-year period, the application will expire and the applicant will have to resubmit everything again and pay another fee. A person applying for the salesperson examination fills out the salesperson examination application and mails it to DRE along with the appropriate fee and proof of completion of three approved real estate courses—Real Estate Principles, Real Estate Practice, and an elective. Once the application is processed, DRE will send notification of the examination date, time, and location. You can also check online at the DRE website to see if your examination has been scheduled. An applicant who fails to pass the state exam may apply for reexamination any number of times by filing an application and paying the fee. The person must take the exam within 2 years or file a new application and pay a new fee. Upon passing the state exam, the applicant may apply for the salesperson or broker license within one year of the examination date.

Section 10177.2 Mobilehome Sales Violations

When dealing with mobilehomes/manufactured homes, a licensee could have his or her license suspended or revoked if he or she is found guilty of any of the following acts: committed fraud on an application for the registration of a mobilehome; did not deliver a properly endorsed certificate of ownership from the seller to the buyer; knowingly purchased or sold a stolen mobilehome; or gave the Department of Housing and Community Development a bad check.

Section 10177.1 Suspend a License Obtained by Fraud

Within 90 days of issuing a license, the Commissioner may without a hearing suspend the license of any person who procured the issuance of the license to himself by fraud, misrepresentation, deceit, or by the making of any material misstatement of fact in his application for such license.

team name

a professional identity or brand name used by a salesperson and at least one or more other licensees, to provide real estate licensed services. The use of a team name does not require a salesperson to obtain a separate license as a fictitious business name. For a team name to not to be considered a fictitious business name, the team name must meet several requirements • The team name is used by two or more real estate licensees who work together to provide licensed real estate services, or who represent themselves to the public as being a part of a team, group, or association to provide those services. • The team name includes the last name of at least one of the licensee members of the team, group, or association in conjunction with the term "associates", "group", or "team". • The team name does not include any term or terms, such as "real estate broker", "real estate brokerage", "broker", or "brokerage" or any other term that would lead a member of the public to believe that the team is offering real estate brokerage services that imply or suggest the existence of a real estate entity independent of a responsible broker. [B&P §10159.7(a)(5)]. Examples of Team Names that Meet the Requirements Tamara Thompson, Janet Brown, and her brother Brandon Brown are members of a team. Names they could use to meet the requirements are "Thompson Group", "Thompson Team", or "Brown and Associates". Examples of Team Names that do Not Meet the Requirements Names like "Tamara's Team" or the "Brown Brokerage Group" would violate the law. The team name must include the last name of at least one member of the team and the name cannot suggest that the team is an independent real estate brokerage.

Customer Recovery Account

a separate account funded through collection of up to 12% of license fees collected. This fund assures the payment of otherwise non-collectable court judgments against licensees who have committed fraud, misrepresentation, deceit, or conversion of trust funds in a transaction. Under specific conditions of law, the person with a qualifying judgment may seek reimbursement from the Consumer Recovery Account for actual and direct loss to a statutory maximum. Currently the amount paid will be $50,000 per transaction, with a possible total aggregate maximum of $250,000 per licensee. If the Commissioner pays a judgment on behalf of a broker or salesperson, the license is automatically suspended. A suspended license will only be reinstated after full reimbursement, plus interest, is repaid to the Recovery Fund.

e-licensing transaction

an interactive online system that lets you complete license renewal and change transactions via the Internet. The following list includes many of the available transactions. • Online Registration with DRE • Mailing Address Changes • Broker Main Office Address Changes • Salesperson Requests To Change Employing Broker • Broker Certification Of Salesperson Employment • Salesperson/Broker License Renewals • Duplicate License Requests • Examination Services

advocacy program

as an alternative to setting up formal investigations. Many of the issues that the enforcement advocates resolve involve a breakdown in communication between licensees and their principals. The types of cases handled through the Advocacy Program include small monetary disputes where there does not appear to be a violation of the Real Estate Law. • Consumers who needed copies of their documents and had been unable to secure a response. • Consumers who needed assistance in contacting their agent or broker on a current transaction. • Consumers who needed information that they had not been able to obtain from their agent for escrow, lenders, or inspectors. • Consumers trying to cancel transactions or loans. • Consumers who wanted to know where their earnest money was. • Consumers who were asked to sign documents or do something they did not understand or did not feel is appropriate. • Consumers having homeowner association issues while DRE still has jurisdiction over a subdivider. • Licensees questioning whether offers have been presented to sellers, or to lenders in REO transactions.

Late renewal aka 2 yr grace period

for renewal is allowed as long as all real estate activity has ceased during that time and a late fee is paid at the time of renewal. There is no provision for an inactive license status. Two years after a license expires, all license rights lapse, and the person will have to go through the state examination process again to get another real estate license.

moral turpitude

includes perjury, embezzlement, robbery, murder, and other base or vile acts.

unlicensed person

may receive payment for any act requiring a real estate license. The fine for paying a fee to an unqualified person is $100 for each offense. Prior to paying a commission, an escrow holder should require a broker to present evidence he or she is a regularly licensed real estate broker at the time such compensation is earned. It is unlawful for any unlicensed person to pose as a real estate broker or salesperson or to advertise that he or she is a real estate broker. The punishment for an individual falsely claiming to be a broker or salesperson is a fine or imprisonment up to six months, or both.

investigation and accusation

of the actions of a licensee is based upon receipt of a verified written complaint from someone who believes a licensee, while acting as an agent, has wronged them. Investigations are made by DRE's

Order to Desist and Refrain

or a complaint is brought, and the parties are prosecuted in a court of competent jurisdiction. respective counties. Only the Commissioner—not the courts—can restrict, suspend, or revoke a real estate license.

Education and Research Amount

pays for the advancement of real estate education at California universities, California state colleges, and California community colleges. It also funds real estate research projects conducted by colleges or qualified associations.

Real Estate Law

referred to as the license law, is designed mainly for the protection of the public in real estate transactions where a licensee is involved. When you hear the term, "Real Estate Law", it means the law that affects the licensing and conduct of real estate brokers and salespeople. It must be seen separately from what is known as real property law, law of agency, contract law, or other legal aspects of real estate ownership and transfer. The two main purposes are to protect: 1. consumers from loss because of dishonest and incompetent agents. 2. the good standing of ethical agents from the adverse publicity caused by unprincipled licensees. It pertains to the: 1. licensing of Real Estate Brokers and Salespeople. 2. conduct of Real Estate Brokers and Salespeople. The Real Estate Law is not upheld in a court of law, but is enforced by the Real Estate Commissioner. One of the jobs not assigned to the Commissioner is settling commission disputes. That issue falls under the power of a court of law, and must be handled through an attorney if the parties involved cannot settle the matter agreeably.

salesperson license

required for people employed as salespeople under the supervision of a licensed broker. A person may obtain a salesperson license even if he or she does not intend to be employed immediately by a broker. However, a salesperson without an employing broker may not perform acts requiring a license. A salesperson must submit proof of completion of 3 approved real estate courses—Real Estate Principles, Real Estate Practice, and an elective course. A salesperson must be employed by a licensed broker to perform acts regulated by a salesperson license.

Real Estate Broker

someone who holds a broker license issued by the Department of Real Estate. The license legally permits the broker to perform any acts for which a real estate license is required. In a real estate transaction, a broker is the agent of his or her principal.

real estate sales person

someone who holds a salesperson license issued by the Department of Real Estate. The salesperson must be employed by a real estate broker in order to perform any of the activities that require a license. A salesperson is an agent of his or her employing broker.

citations and fines

to both licensees and unlicensed persons for minor violations of the Real Estate Law. citation describes the basis of the complaint and contains an order to correct the violation and a reasonable time period in which to correct it. In addition, the Commissioner may assess an administrative fine not to exceed $2,500 per citation.