Chapter 2- The California State Department of Real Estate
A Corporation Background Statement (RE 212) must be submitted by the designated officer of the original corporation license applicant for himself or herself, as well as for who?
1. Each director 2. The chief executive officer, 3. The president 4. The first-level vice presidents 5. The secretary 6. The chief financial officer 7. The subordinate officers with responsibility for forming policy of the corporation and for.. 8. Each natural person owning or controlling more than 10% of the corporation's shares.
The following parties are EXEMPT from the licensing requirements in California. These parties DO NOT need to be licensed as real estate salespersons or brokers because of the nature of their work (in order to carry out their jobs as such):
1. The employees of banks or other lending institutions; 2. The lenders who make federally-insured or federally-guaranteed loans; 3. Licensed personal property brokers; 4. Cemetery authorities; 5. Certain agricultural associations; 6. Certain collectors of payments for lenders or on notes for owners in connection with loans secured directly or collaterally by liens on real property; 7. Some clerical help (depending on the extent of the duties handled by the clerical personnel); 8. Resident managers of apartment buildings and complexes or their employees; 9. Short-term (vacation) rental agents; 10. Employees of certain lending institutions; 11. Employees of real estate brokers for specific, limited functions
These are the parties who may solicit for the sale of real property without having a license:
1. The property owner. 2. A person holding the power of attorney FOR the owner. 3. An attorney at law acting in the capacity of an attorney ON BEHALF OF the owner. 4. A receiver or other court appointee. 5. A trustee who is selling the property under a deed of trust.
What must be submitted if the designated broker-officer of a corporation is replaced by another qualified broker for the balance of the license period ?
1.) A completed Corporation License Application (RE 201) and Corporation Background Statement (RE 212); AND 2.) A copy of the signed resignation of the officer leaving the firm, or a copy of the Resolution of the Board of Directors with the corporate seal, or a signed statement giving the date of death of the currently licensed designated broker-officer.
What will this chapter discuss?
1.) The California Department of Real Estate in detail, from the Commissioner and Commission members, to the DRE's responsibilities and authority within the State of California. 2.) The licensing requirements for original salesperson and broker licenses, the educational requirements for license candidates, continuing education mandates, and other license information. 3.) License law violations and the enforcement of real estate law. 4.) the Real Estate General Fund 5.) the Recovery Account in California.
If an applicant has been licensed as a real estate broker in another state, then the license law in California requires how many responsible parties must submit a verification of this experience by completing form RE 228?
2
Broker-officer applicants who currently hold an officer license for a corporation, but have never obtained an individual broker license, will be required to furnish evidence of completion of the current continuing education requirements that have been attained within the previous ______ years.
4
Once you pass the examination, how long is you license good for?
4 years
In the case of a foreign corporation, what is required, and when must it be executed (prior to the date the corporation submits its application)?
A Certificate of Qualification is required, and must be executed within the 30 days prior to the date the corporation submits its application.
Who issues a Certificate of Status along with a statement of officers ?
A Certificate of Status is issued by the Secretary of State along with a statement of officers .
What statement is this ? RE 212
A Corporation Background Statement
What is the process for a dba name change?
A Corporation Change Application is needed, and it has to be signed by a licensed officer, then it must be submitted to the DRE, along with a copy of the Amended Articles of Incorporation reflecting the name change and bearing the endorsed stamp of the California Secretary of State.
What application is this? RE 201
A Corporation License Application
What application is this ? RE 214
A Salesperson Change Application
In addition to the previous application and fee for the corporation, EACH broker who is to act for and on behalf of a corporation as a broker-officer must submit a completed what ?
A broker-officer must submit a Corporation License Application and the appropriate license fee
In addition to the previous application and fee for the corporation, EACH broker who is to act for and on behalf of a corporation as a broker-officer must submit what?
A completed Corporation License Application and the appropriate license fee
What is a "dba"?
A fictitious business name.
When can an applicant apply for the original broker license?
After they pass the examination, he/she is notified by DRE and at that point they may apply for the original broker license.
If a situation occurs in which action or a proceeding is brought by or against the commissioner in regard to their work, who will act as the commissioners attorney ?
An Attorney General will act as their attorney.
What is an alternative to the experience requirements, to become a broker?
An applicant may ((((submit evidence of graduation from a four-year university))))))- (or college accredited by the Western Association of Schools and Colleges or similar regional accrediting agency recognized by the U. S. Department of Education) -((((((with a MAJOR or MINOR in real estate))))), as the equivalent of two years' general real estate experience (((AND))) completion of the required real estate courses.
Is the l Commissioner' paid hourly , monthly, or annually?
Annually
What must an individual Broker-officer applicant with no status have evidence of? How long must this evidence be tracked back to?
Broker-officer applicants without individual broker status will be required to furnish evidence of completion of appropriate continuing education requirements, attained within the previous four-year period.
True or false? Having two years experience as a real estate salesperson is all you need to qualify for a brokers license?
False, The DRE requires that employing broker(s) complete an Employment Verification for the applicant, or RE 226, to provide additional evidence that an applicant has worked full-time as a salesperson for at least two years.
Who is the Controller for the CA State Treasury?
Fiona Ma
How does the DRE generate its revenue?
From fees charged for real estate licenses... From fees charged for subdivision public reports, and from fees charged for various other permits issued by the Department.
Who is Doug McCauley?
He is the Commissioner of the California Department of Real Estate (DRE). He was appointed by Governor Gavin Newsom on April 2, 2020 and assumed office on May 6, 2020.
What happens if an unlicensed person DOES act as a real estate salesperson or broker?
He or she will be penalized under the law.
Under Sections 10138, 10139, 10139.5 of the Code, why might a broker be found guilty of a misdemeanor and may also be fined by the courts?
If broker has compensated a non-licensed individual for activities in which that individual was not licensed for.
Where's is the Commissioner's principal office located ?
In the City of Sacramento
What does Section 10132 of the Code define?
It defines a real estate salesperson and the acts requiring licensure and employment by a real estate broker.
Where does the commissioners salary come from?
It goes from out of the State Treasury upon a warrant of the Controller.
Where does the DRE's revenue go?
It goes into the Real Estate General Fund
What does the The Real Estate Commissioner do?
It governs the entire California Department of Real Estate.
Once the employing broker(s) complete an Employment Verification for the applicant, (RE 226) what do you now do with the forms?
Once the verification forms are completed, they must be mailed with the application to the DRE.
The District Offices located in these five cities carry out the Department's responsibilities as mandated by the Real Estate Law and the Subdivided Lands Law.
Sacramento Fresno Los Angeles Oakland San Diego
The Commissioner's principal office is allowed to establish branch offices in what Cities/ County's?
San Francisco Los Angeles, and in other cities as they may deem necessary..
What are the sections that detail license exemptions.
Sections 10131.01, 10133, 10133.1, 10133.15 10133.2, 10133.3, 10133.35, 10133.4, and 10133.5.
Who serves as the chief executive of the Department of Real Estate?
The California Real Estate Commissioner
Who is in charge of giving the Commissioner its authority and power?
The California legislature
The California Real Estate Commissioner is appointed by who?
The Governor
If an applicant has been licensed as a real estate broker in another state, what must the RE 228 verification include?
The RE 228 verification must include a clear, detailed description of the applicant's duties/activities and indicate how the verifier is aware of the applicant's employment record.
How can an applicant prove that they are qualified based on a college degree, with a MAJOR or MINOR in real estate, as the equivalent of two years in general real estate experience?
The applicant must provide proof through official transcripts of educational records.
Besides being a broker for 5 years, what else qualifies a person to be a Commissioner?
The candidate must possess 5 years related experience associated with real estate activity in California during the last 10 years.
Besides a Corporation License Application and fee, what else does a corporation need to submit to become official?
The corporation must submit a Certificate of Status and a statement of officers.
What is the process for a change in location of a main office or ,mailing address ?
The corporation must submit a completed Corporation Change Application signed by a licensed officer.
What is the process for a change in sales person?
The corporation must submit a completed Salesperson Change Application (RE 214) for each currently licensed salesperson to be placed in the employ of the corporation.
Who is the The California legislature?
They are a deliberative body of persons, usually elective, who are empowered to make, change, or repeal the laws of a country or state; the branch of government having the power to make laws, as distinguished from the executive and judicial branches of government.
If an applicant has been licensed as a real estate broker in another state, who can legally verify the applicant's employment status?
This might include other real estate brokers, title officers, or loan officers
How does the DRE protect the public?
Through the enactment and enforcement of laws relating to real estate and by establishing requirements for the real estate salespersons' and brokers' licenses.
What is the MAIN purpose of the California Department of Real Estate ?
To protect the public
In administering the laws and regulations, the Commissioner exercises judgment impartially, with fairness to both the consumer AND the industry.
True
True or False? An original salesperson license is required for an individual who is to be employed as a salesperson under the control and supervision of a licensed broker. The license permits licensed activity only while in the employ of a broker. Salespersons' licenses must be available for inspection in the broker's main office. The salesperson can be compensated for work as an agent only by the salesperson's employing broker - not by any other broker, other salesperson, client, or other person, according to Sections 10132 and 10137 of the Code.
True
True or False? California law states that copies of all records and papers in the Commissioner's office, which are certified under the hand and seal of the Commissioner, are to be received into evidence in all cases equally and with the same effect as the originals.
True
True or False? Each state has its own real estate licensing laws and regulatory body
True
True or False? If an unlicensed person being held accountable for acting as a real estate agent and a broker has ALLOWED this person to operate under him and compensated this person for performing real estate activities that BY LAW require the person to possess a license, then that broker will ALSO be disciplined under the law.
True
True or False? If someone in California act in the capacity of a real estate salesperson without being licensed under the California licensing laws, that individual cannot receive any compensation for such acts.
True
True or False? In order to be appointed as Commissioner, the Commissioner candidate must have served for a minimum of 5 years as a real estate broker actively engaged in the real estate business in California.
True
True or False? Once the Real Estate Commissioner issues a regulation, it then becomes a part of the California Administrative Code.
True
True or False? Some private vocational schools offer these required courses to become a broker, (both in residence (classroom) and through correspondence study). However, only those private schools formally approved by the DRE may offer these courses for DRE credit.
True
True or False? The Commissioner has been given both the power and the means to issue regulations to more easily administer and enforce the Real Estate Law and the Subdivided Lands Law.
True
True or False? The Commissioner's mission, then, is to enforce the Real Estate Law and the Subdivided Lands Law in a manner that offers the maximum protection for persons dealing with real estate licensees and for purchasers of subdivided real property.
True
True or False? The Commissioner's responsibility is to enforce laws in a manner in which maximum protection for real estate consumers ( purchasers) is achieved.
True
True or False? The individual broker license entitles a natural person to conduct a brokerage business under his/her own name or, if so licensed, under a fictitious business name.
True
True or False? The only unlicensed person who may solicit for the sale of real property is the owner and/or his legal representatives.
True
True or false? A person must be LICENSED if he or she assists or offers to assist in filing an application for the purchase or lease of property owned by the state or federal government for compensation
True
True or false? A person must be LICENSED if he or she leases or rents; offers to lease or rent; places for rent; solicits listings of places for rent; solicits for prospective tenants; negotiates the sale, purchase or exchanges of leases on real property; or collects rents from real property.* for compensation
True
True or false? A person must be LICENSED if he or she negotiates loans, collects payments, or performs services for borrowers or lenders or note owners for compensation
True
True or false? A person must be LICENSED if he or she negotiates the purchase, sale, or exchange of real property or a business opportunity for compensation
True
True or false? A person must be LICENSED if he or she sells or offers to sell, buys or offers to buy, and solicits prospective sellers or purchasers of real estate for compensation
True
True or false? A person must be LICENSED if he or she sells or offers to sell, buys or offers to buy, or exchanges or offers to exchange a real property sales contract, or a promissory note secured directly or collaterally by a lien on real property or on a business opportunity, and performs services for the holders thereof for compensation
True
True or false? A person must be LICENSED if he or she solicits or obtains listings of real estate for compensation
True
True or false? The Regulations of the Real Estate Commissioner have the force and effect of law.
True
When would you need a Corporation Background Statement (RE 212)?
When a designated broker-officer of a corporation is replaced by another qualified broker
When would you need a Corporation License Application
When a designated broker-officer of a corporation is replaced by another qualified broker
Can brokers do business as a corporation? Yes
Yes
Do you need to to submit Corporation License Application and fee to become a broker?
Yes
Is it the Commissioner's duty to (where appropriate) pursue formal action against licensees?
Yes
Is it the Commissioner's duty to conduct an investigation of non-licensees alleged to be performing acts for which a license is required?
Yes
Is it the Commissioner's duty to conduct regulation of dealings in mineral, oil and gas property and Prepaid Rental Listing Services.
Yes
Is it the Commissioner's duty to conduct regulation other license requirements?
Yes
Is it the Commissioner's duty to conduct regulation for a sale or lease by a real estate broker?
Yes
Is it the Commissioner's duty to conduct regulation of a sale or lease of subdivision interests?
Yes
Is it the Commissioner's duty to investigate complaints?
Yes
Is it the Commissioner's duty to issue real estate licenses to qualifying applicants?
Yes
Is the Commissioner allowed expenses in the discharge of their duties?
Yes
Can a real estate broker be licensed as a corporation? And if so, by what grounds?
Yes, provided at least one officer of the corporation is a duly qualified real estate broker willing to act as the corporation's responsible designated broker-officer.
Is a dba allowed in CA?
Yes, provided that the corporation submits a copy of a Fictitious Business Name Statement as filed with the county clerk's office in the county where the corporation's principal place of business is located.
What do you do if you are not able to obtain the proof of experience from your employing broker.? Is there is an alternative?
Yes. That applicant's experience may be corroborated (confirmed) on an Employment Certification (RE 228), by at least two other individuals who were employed in a related real estate field AND were in a position to verify the applicant's duties, employment dates, and other pertinent information. The applicant must remember to include an explanation as to why the employing broker of record cannot verify the salesperson's experience
if your a broker that wants to become a corporation, what should you submit first? The Corporation License Application and fee, or the Certificate of Status and a statement of officers ?
You should submit the Certificate of Status and a statement of officers because it is advised that this should be submitted within 30 days prior to the date the application is filed by the Secretary of State.
What else should you submit with the Certificate of Status, besides the Corporation License Application and fee?
a statement of officers.
For an applicant who has been licensed as a real estate salesperson in another state, what form must be used to verify their previous salesperson experience?
form RE 226
What is the name of Californias regulatory agency?
the California Department of Real Estate, aka DRE
In order for the Commissioner's principal office to establish branch offices in cities other then Sacramento, the office must first get an approval from who?
the Department of Finance.
A candidate for an original real estate salesperson license must:
✅Be at least 18 years old to be issued a license (Surprisingly, there is no age restriction on taking the licensing exam.); ✅To obtain a real estate salesperson license, you must first qualify for and pass a written examination. ✅Those who pass the examination are provided a license application which must be submitted to and approved by the DRE. ✅Provide a social security number or an individual taxpayer identification number. ✅Honesty — Applicants must be honest and truthful. Conviction of a crime may result in the denial of a license. Failure to disclose any criminal violation or disciplinary action in an applicant's entire history may also result in denial of a license.
Under the provisions of AB 2429, salesperson examination applicants will be required to submit evidence of completion of a three semester, or quarter Chapter equivalent, college-level course in Real Estate Principles, Real Estate Practice and one additional course which should be chosen from the following list of courses:
💰 Legal Aspects of Real Estate- 💰Real Estate Office Administration- 💰Real Estate Appraisal- 💰Computer Applications in Real Estate- 💰Real Estate Finance- 💰Real Estate Economics- 💰Property Management- 💰Business Law- 💰Escrows- 💰Accounting- 💰Mortgage Loan Brokering- 💰Lending Common Interest Developments-
The applicant for an original real estate broker license must:
💰Be at least 18 years old; 💰Be honest and truthful; 💰Have been actively engaged as a real estate salesperson for at least two years during the five years immediately preceding the application OR prove that he/she has general real estate experience that is the equivalent of two years of full-time experience as a salesperson completed within a similar time period. 💰Have completed EIGHT COURSES in addition to the experience requirements. 💰Pass the qualifying examination.
Following are the five MANDATORY BROKER COURSES:
📚Real Estate Practice 📚Legal Aspects of Real Estate 📚Real Estate Financing 📚Real Estate Appraisal 📚Accounting OR Real Estate Economics
A broker applicant must also complete any three COURSES of the following "ELECTIVE COURSES":
📚Real Estate Principles 📚Business Law 📚Property Management 📚Real Estate Office Administration 📚Escrows 📚Advanced Legal Aspects of Real Estate 📚Advanced Real Estate Finance 📚Advanced Real Estate Appraisal 📚Mortgage Loan Brokering and Lending 📚Computer Applications in Real Estate 📚Common Interest Development (2004)
Remember that all licensing courses must be:
📚THREE semester-Chapter (or four quarter-unit) courses in length; 📚COLLEGE-level courses; and 📚Offered by an institution of higher learning accredited by the Western Association of Schools and Colleges or similar regional accrediting agency recognized by the United States Department of Education, OR by an equivalent course of study offered by a private vocational school approved by the DRE, like REAL ESTATE EXPRESS.
