Real State Chapter 1 Flashcards
The California Real Estate License Law
specifies who must obtain a license to practice real estate and sets the requirements for obtaining and maintaining the license.
Department of Real Estate (DRE)
is the administrative body that both administers AND enforces the real estate license laws and related regulation of California real estate licensees.
On August 4, 1943, the Legislature organized the statutory authority of the California Department of Real Estate (DRE) into the two Parts of Division 4 of the Business and Professions Code (also referred to as the B & P Code, or, more commonly, as “the Code”). These parts are as follows:
Part 1, Sections 10000 to 10580 of the Business and Professions Code, is most commonly known as the Real Estate Law;
Part 2, Sections 11000 to 11200, is most commonly known as the Subdivided Lands Law.
Keep in mind that these laws are NOT the same – either in their purpose or in their operation
the California Department of Real Estate is a
is a real estate regulatory body that is headed by the Real Estate Commissioner.
The DRE utilizes, among other tools, its website (http://www.dre.ca.gov/)
to disseminate recent changes in regulations and laws, and otherwise inform its consumers, licensees, and subdividers.
Also:
Check test results;
Obtain the current testing schedule;
Renew salesperson and broker licenses;
Change salesperson’s employing broker;
File mailing address changes;
Request continuing education extension/exemption.
The DRE has a webpage (https://www.dre.ca.gov/Examinees/SalesExamContent.html)
covering the topics covered on the DRE licensing exam. You should take a minute to review that webpage.
According to the Commission’s Regulation 2770
Anyone who advertises about services over the Internet will NOT be real estate broker in California, if ONE of these apply:
(1) If the advertisement involves a service, BUT IS:
•NOT directed to any particular person or customer located within California;
•LIMITED to general information about the services offered to customers or the public in general
•Includes the following words: “The services referred to herein are not available to persons located within the State of California.”
(2) If the advertisement does not involve a service for which a real estate license is required;
(3) If the advertisement is not being published or transmitted on behalf of another person.
A person who advertises is NOT required to have a real estate license if:
- The person who is publishing is exempt from license requirements as set forth in the code;
- Before there is any direct communication with a specific customer, the business person already has implemented and procedures in place for such communication that does not require a real estate license.
Also note
• Licensees who advertise on the internet are required by law to indicate their license status.
• Misleading advertising can result in criminal penalties.
• Anyone who is not a California licensed broker may not legally solicit California residents.
Business and Professions Code, Sections 10235.5
(a) A real estate licensee or mortgage loan originator shall not place an advertisement disseminated primarily in this state for a loan unless there is disclosed within the printed text of that advertisement, or the oral text in the case of a radio or television advertisement, the Department of Real Estate number and the unique identifier assigned to that licensee by the Nationwide Mortgage Licensing System and Registry under which the loan would be made or arranged.
California Business and Professions Code §10140.6
(a) A real estate licensee shall not publish, circulate, distribute, or cause to be published, circulated, or distributed in any newspaper or periodical, or by mail, any matter pertaining to any activity for which a real estate license is required that does not contain a designation disclosing that he or she is performing acts for which a real estate license is required.
