CA RE License Law Flashcards
Law requiring RE licenses for all states
Real Estate Act of 1919
CA Real Estate Commissioner
appointed by Governor to implement/enforce CA RE laws, protect RE licensees, set admin policies
Active broker for min 5 yrs in CA
Requirements for RE salesperson
- 18+ yrs old
- Honest/truthful
- Apply for appropriate license with proper form
- Pay license fee
- Fingerprinted
- Provide SSN or taxpayer ID to DRE
- Complete 135 hrs of 3 courses: Real Estate Principles + Real Estate Practice + 45 hour course from set list
- Pass 150 multiple choice exam in ⅗ hrs @ 70% or more → apply for license within 1 yr
Lawyers exempt
As of 2023, 2 hour implicit bias training
RE license renewal cadence
Every 4 years
Licenses not required for:
*Acting on own behalf for their own property
*Corporate officer acting on behalf of corporation or general partner on behalf of partnership
*Acting under power of attorney
*Attorney for a client
*Under court order
*Trustee under deed of trust
Real property securities transactions by employees of banks, lenders, insurance companies, credit union, etc.
*Licensed securities broker/dealer
*Cemeteries
*Performing clerical functions
*Resident managers of residential complexes
*Condo association managers who don’t rent/sell units
*Using property for photography
*Outdoor advertising companies
Penalty for unlicensed activity
up to $20K fine (individual) or $60K fine (corporation) or 6 mo jail
RE broker requirements
- 18+ yrs old
- Honest/truthful
- Minimum 2 yrs active/full-time licensed salesperson experience within last 5 yrs
- Pay applicable fees
- Complete 8 required courses + 3 courses from set list
- Pass broker’s exam
Time brokers are required to keep documentation on record for DRE
3 years from transaction date
Time required to keep mortgage loan disclosures/real property security statements on record for DRE
4 years from transaction date
1st time salesperson license renewal
complete 45 hours of continuing education courses + consumer protection courses
1st time broker license renewal
complete 6 3 hour courses + consumer protection courses
Core 6 continued learning courses
- Agency
- Ethics
- Fair Housing
- Management and Supervision
- Trust Funds
- Risk Management
Subsequent license renewal requirements
45 hours of continuing education (1 course covering 6 mandatory subjects + 18 hrs continuing education on those subjects) + 18 hours consumer protection courses
Age exempt for license renewal requirements in CA
70+ years old
Must be in good standing for 30+ years
Fictitious business name statement
conduct business under fake name filed with county clerk and sent to RE Commissioner + valid for 5 yrs
goodwill
monetary value of established good name with customer base
Uniform Commercial Code
requirements imposed on bulk sales
Notice of Defense
Permits licensee to request a hearing, admit to accusation in whole/in part, present a defense, object to accusation on grounds that it is indefinite/uncertain, challenge DRE on the basis of jurisdiction, or object on grounds that compliance with the cited regulation would have resulted in the violation of another regulation
Petition for reconsideration
Accused licensee requests to go back to court for admin hearing
petition for judicial review
accused licensee requests to move case to state court
informal conference
may follow audit, broker sits down with a DRE auditor to review corrections that should take place in the licensee’s brokerage to avoid minor errors in record keeping and procedural matters
Blind advertising
Ads don’t include broker/licensee name
Real Estate Fund
license fees from DRE credited by State Treasury that pays for education/research and Consumer Recovery Account
Consumer Recovery Account
reimburse licensee in civil judgment/arbitration award with no funds to pay
Up to $50K for single transaction, up to $250K for losses caused by 1 licensee
commingling
mixing trust funds with the broker’s personal or brokerage’s company funds
conversion
converting funds to the broker’s or brokerage’s own use = theft
Columnar record keeping system
3 records: trust funds received but not deposited + received and disbursed + each client/customer or transaction
Sherman Antitrust Act
federal prohibition of any type of price fixing with respect to commission rates, participation in a group boycott of a competing brokerage firm, or tie-in arrangement (sell or do something on the condition that some other sale or agreement is entered into ie must only list with 1 brokerage) → restraint of trade or exclusion of other brokers
