3. CalBRE
Every state government regulates its own real estate
brokerage activities by staff members who are collectively
referred to as REGULATORS
In California, this office is called the CALIFORNIA
BUREAU OF REAL ESTATE (CalBRE)
The CalBRE is managed by the Real Estate Commissioner
who sets all of the rules and regulations for the bureau
The Commissioner’s position arises out of POLICE
POWER provisions of the California Constitution, under
which laws beneficial to the health, safety, morals, and
general welfare are enacted.
5. A. Who Must Have a License?
A person is required to have a license if he or
she:
6. B. When A License is Not
Required
No license is required for the following:
Employees of lending institutions
Lenders making federally insured or guaranteed
loans
Certain agricultural associations
Person property brokers
Cemetery authorities
Collectors of loans made on real property
Certain clerical help
7. C. Obtaining the 4 Year
Salesperson’s License
AGE -you must be 18 years old
RESIDENCE- be legally present in the U.S.
HONESTY -be honest and truthful
EDUCATION -you must complete a college-level Real
Estate Principles, Real Estate Practice, and another
Real Estate elective course before taking your state
exam
The salesperson’s exam (available electronically) takes
3 hours 15 minutes, has 150 questions and requires a
70% correct score to pass
10. E. Obtaining The CalBRE
Mortgage Loan Originator (MLO)
License Endorsement
11. F. Renewal of License
Every 4 years
Must meet required Continuing Ed
requirements
45 hours of continuing ed for second and
subsequent renewals
12 hours of: Ethics, Agency, Trust Fund Handling,
and Fair Housing
3 hours of Risk Management & 18 hour of consumer
protection, plus more hours in either consumer
service or consumer protection
12. Prepaid Rental Listing
Service License
An individual may obtain, without examination, a
two-year license to conduct PRLS activities
Applicants must submit, and have approved by
DRE, a contract to be entered into between the
licensee and client
Fingerprints and a $2,500 bond are required for
each business location
14. A. Real Estate Commissioner
Appointed by the governor
The commissioner also does the following:
15. B. Enforcement of Real
Estate Law
The Commissioner may, by his or her own choice,
investigate the actions of any person engaged in the
real estate business or acting in the capacity of a
licensee with this state
16. C. Hearings for License
Violations
A hearing is held when there is a question as to the
rights of persons to obtain or keep their real estate
license
If a licensee gets their license revoked, the person
affected may NOT apply for reinstatement until one
year has passed
17. D. Licenses: Revoke, Restrict,
Suspend
REVOKED means to take away the license
RESTRICT means to limit the use of the license
SUSPEND means to take away the license for a
period of time
Note: active licensees who are delinquent on child
support payments have 150 days to pay up or have
their license suspended
20. Common Violations
Section 10176: Licensees violating who are not acting
within the scope of their licenses
Section 10177: Licensee not necessarily acting as a
licensee
Regulations of the Commissioner:
Broker Supervision
22. General Fund
All the money collected from license and exam fees
goes into the REAL ESTATE GENERAL FUND
80% of this money is used for operating expenses of
the Bureau of Real Estate
20% is set aside as follows:
8% to the Real Estate Education and Research Fund
12% to the Recovery Fund
The RECOVERY FUND was established for the payment
of damages and arbitration awards to people who have
suffered financial loss due to the wrongful act of a
licensee in a real estate transaction
24. Real Estate Associations
A LOCAL REAL ESTATE ASSOCIATION® is a
voluntary organization of real estate licensees in a
particular community
The CALIFORNIA ASSOCIATION OF REALTORS® is
the state division of the National Association of
Realtors®
“Realtist” is the name for a member of the National
Association of Real Estate Brokers (NAREB)
National Association of Hispanic Real Estate
Professionals (NAHREP)
Asian Real Estate Association of America (AREAA)
25. Chapter Summary
• Department of Real Estate
• Real Estate License Requirements
• Who must have a license?
• When a license is not required
• Obtaining the Salesperson’s License
• Obtaining the Broker’s License
• Renewal of License
• Continuing Education
• PRLS
• Real Estate Law & Regulations
• Real Estate Commissioner
• Enforcement of Real Estate Law
• Hearings for License Violations
• Licenses: Revoke, Restrict, Suspend
• Real Estate Bulletin
• Common Real Estate Law Violations
• Section 10176
• Section 10177
• Broker Supervision
• Real Estate General Fund
• Trade & Professional Associations
