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Prac pp chp 15
The document summarizes California real estate licensing requirements and regulations. It covers topics such as obtaining a real estate license as a salesperson or broker, license renewal requirements including continuing education, the role and powers of the California Bureau of Real Estate, common real estate law violations, and real estate trade associations.
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Prac pp chp 15
- 1. Chapter 15 Licensing, Ethics,and Associations Acquiring and Maintaining Your License
- 2. I. California Bureauof Real Estate (CalBRE)
- 3. CalBRE Every stategovernment 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.
- 4. II. Real EstateLicense Requirements
- 5. A. Who MustHave a License? A person is required to have a license if he or she:
- 6. B. When ALicense 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 the4 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
- 9. D. Obtaining theBroker’s License
- 10. E. Obtaining TheCalBRE Mortgage Loan Originator (MLO) License Endorsement
- 11. F. Renewal ofLicense 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 ServiceLicense 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
- 13. III. Real EstateLaw and Regulations
- 14. A. Real EstateCommissioner Appointed by the governor The commissioner also does the following:
- 15. B. Enforcement ofReal 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 forLicense 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
- 18.
- 19. IV. Common RealEstate Law Violations
- 20. Common Violations Section10176: 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
- 21. V. Real EstateGeneral Fund
- 22. General Fund Allthe 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
- 23.
- 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 • Departmentof 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