Answers Definitions Vocab Topic Definition Vocab Section 2 California License Law sec unit les Unit 1 Real Estate Law and Authorities in California Lesson 1 Dept of California Real Estate In California that regulatory authority is the California Bureau of Real Estate CalBRE which oversees licensing requirements and enforcement for real estate licensees CalBRE s commissioner has the authority to issue regulations that have the force and effect of law to hold formal hearings to decide issues involving licensees and licensee applicants and to issue Desist and Refrain Orders to stop activities that are in violation of real estate law There are five DRE district offices throughout the state Let s see Fresno Oakland Los Angeles Sacramento and San Diego Each district office screens license applicants performs audits prepares reports and investigates activities in their area The Commissioner Our resource focused on the Commissioner and advisory commission s roles within CALDRE Let s spend some time reviewing the role of the Commissioner Identify whether the following statements are true or false regarding the Commissioner s role Appointed by the governor Chief executive officer of CALDRE Practicing real estate broker in CA for five years or engaged in real estate activities for five of last Not elected by the public Serves as CEO of of CADRE Compensated for serving as Commissioner Issues regulations to enforce law Real Estate Commissioner 10 years Compensated for service Determines policy issues regulations to enforce law Holds formal hearings for license or applicant issues Real Estate Advisory Commission Appointed by the commissioner 10 members 6 licensed real estate brokers 4 non licensed consumers Not compensated Discuss policy and make recommendations to the commissioner Lesson 2 CA Real Estate Laws and Regulations California Real Estate Law and Regulations The state of California has enacted laws related to real estate activities These laws aim to protect and promote public safety health order and welfare These laws are compiled into the Business and Professions Code There are two parts to that make up real estate law Licensing Regulation of Transactions Real estate law is clarified through Regulations of the Real Estate Commissioner The real estate commissioner issues these regulations to help with the understanding and enforcement of real estate law and subdivided lands law Licensees must follow these regulations as they have the same force and effect as the law The purpose of the real estate law is to protect public safety Licensees must follow both the real estate law in the Business and Professions Code and the Regulations of the Real Estate Commission Section 2 California License Law Unit 2 CA Real Estate Activities and Licenses Lesson 1 Activities Requiring a CA Real Estate License Activities Requiring a CA Real Estate License Not every real estate activity requires licensure You can sell your own home to your neighbor for instance without a license Certain activities do require a license There are two items to consider payment and the act An individual who is performing or negotiating to perform certain acts for others for compensation or with the expectation of being compensated must have a real estate license These acts are found in Section 10131 of Real Estate Law The activities include not only the doing of the following activities but also offering to do them So merely advertising yourself as someone who performs the following real estate services requires licensing Selling or helping buyers purchase property Negotiating leases exchanges options or business opportunities Collecting rent Helping someone apply to purchase state or federal land Negotiating loans collecting payment or providing similar loan services for real property or a Selling real property sales contracts or promissory notes for real property or on a business business opportunity opportunity Example Ralph is the executor of Donald s estate Following Donald s passing Ralph sells the condominium and two homes Donald owned at the time of his death Ralph is not a licensed real estate professional Did he break the law NO if Ralph were receiving compensation for performing these actions he would be breaking the law In a later lesson we ll review when a license is not required for performing real estate activities For now let s keep reviewing activities requiring a real estate license Example Travis has lived in this area a long time He knows a lot about the history of the city as well as the perks and downfalls of living in different sections of the city Recently he s had several friends approach him with requests to help sell their condos in a neighboring town and then help them choose homes to purchase in the city In return they d pay Travis 1 000 for his time and effort Travis isn t currently licensed Which of these actions can he perform for his friends Researching schools crime rates and other statistics about several neighborhoods can Negotiating the exchange of real estate cannot Listing his friend s condo for sale cannot Searching the Internet and driving the streets to locate properties for sale can If Travis is not receiving any kind of compensation he could perform any of these actions Lesson 2 Real Estate License Types in CA Real Estate License Types in California Broker A person who performs real estate activities for others for compensation According to Section 10131 of the Real Estate Law A person who for a compensation or in expectation of a compensation regardless of the form or time of payment does or negotiates to do one or more activities requiring a real estate license Activities Selling or helping buyers purchase property Negotiating leases exchanges options or business opportunities Collecting rent Helping someone apply to purchase state or federal land Negotiating loans collecting payments or providing similar loan services for real property or a Selling real property sales contracts or promissory notes for real property or as a business business opportunity opportunity Additional Responsibilities Owed to Employed Licensees Reasonable supervision of employed salespersons and brokers Retention of employed salespersons license certificates for duration of employment Salesperson A person who performs real estate activities under a licensed broker s supervision According to Section 10132 of the Real Estate Law Natural person who for a compensation or in expectation of a compensation is