California Department of Real Estate
Encyclopedia
The California Department of Real Estate (DRE) is the state agency
responsible for safeguarding and promoting the public interests in REAL ESTATE MATTERS through licensure, regulation, education and enforcement. The purpose of the DRE is to be an effective consumer advocate by monitoring and regulating industry practices while promoting public awareness. The DRE also strives to be an effective customer-focused department providing timely and efficient services to licensees, subdividers and consumers.
DRE is part of the California Business, Transportation and Housing Agency
. It is headquartered in Sacramento
, with additional district offices in Fresno
, Los Angeles
, Oakland
and San Diego
. As of September 2011, there were 439,648 total licensees under the DRE.
The Commissioner's role is to facilitate the administration and enforcement of the Real Estate Law and the Subdivided Lands Law, the Commissioner is empowered by law to issue regulations. Known as the Regulations of the Real Estate Commissioner, these have the force and effect of law.
In enforcing the provisions of the Real Estate Law, the Commissioner has the authority, if supported by the evidence obtained, to hold formal hearings to decide issues involving a licensee or a license applicant. Such hearings may result in the suspension, revocation or denial of a real estate license. The Commissioner also has the authority to issue Desist and Refrain Orders to stop activities which are in violation of the Real Estate Law or the Subdivided Lands Law.
It is the Commissioner's responsibility to enforce these laws in a manner which achieves maximum protection for real estate consumers. In administering the laws and regulations, the Commissioner exercises judgment impartially, with fairness to both the consumer and the industry.
At the same time the Department is protecting the public interest and increasing consumer awareness, it collaterally assists the real estate industry in expanding its standards and level of professional ethics and responsibility.
Before an applicant for a real estate salesperson license may obtain a license, he or she must apply for and pass a real estate examination and fulfill certain real estate education requirements. In most cases, a broker applicant, in addition to required real estate education, must also have two years of real estate experience before applying for the exam. Broker and salesperson licenses are issued for a four-year period. In general, both types of licenses may be renewed by submitting the appropriate fee and application, and evidence of completion of 45 hours of DRE approved continuing education courses (to include required courses in ethics, agency relationships, trust fund handling, and fair housing).
The Real Estate Bulletin, published quarterly, is furnished to all licensees. This highly informative newsletter keeps readers current on recent changes in the Real Estate Law, DRE policies, as well as timely industry concerns.
The vision of the future for the Department is focused upon adopting innovations that will create new standards of excellence in service offerings and enhance consumer protection by:
California executive branch
The California executive branch of the state of California includes many agencies including those listed below.-Governor:Agencies under the direction of a secretary that report directly to the Governor are cabinet-level agencies, to which other agencies are subordinate to:*Governor**Office of the...
responsible for safeguarding and promoting the public interests in REAL ESTATE MATTERS through licensure, regulation, education and enforcement. The purpose of the DRE is to be an effective consumer advocate by monitoring and regulating industry practices while promoting public awareness. The DRE also strives to be an effective customer-focused department providing timely and efficient services to licensees, subdividers and consumers.
DRE is part of the California Business, Transportation and Housing Agency
California Business, Transportation and Housing Agency
The California Business, Transportation and Housing Agency is a state cabinet-level agency in the government of California. The Business, Transportation and Housing Agency is responsible for oversight of 14 offices and departments and four economic development programs and initiatives within the...
. It is headquartered in Sacramento
Sacramento, California
Sacramento is the capital city of the U.S. state of California and the county seat of Sacramento County. It is located at the confluence of the Sacramento River and the American River in the northern portion of California's expansive Central Valley. With a population of 466,488 at the 2010 census,...
, with additional district offices in Fresno
Fresno, California
Fresno is a city in central California, United States, the county seat of Fresno County. As of the 2010 census, the city's population was 510,365, making it the fifth largest city in California, the largest inland city in California, and the 34th largest in the nation...
, Los Angeles
Los Angeles, California
Los Angeles , with a population at the 2010 United States Census of 3,792,621, is the most populous city in California, USA and the second most populous in the United States, after New York City. It has an area of , and is located in Southern California...
, Oakland
Oakland, California
Oakland is a major West Coast port city on San Francisco Bay in the U.S. state of California. It is the eighth-largest city in the state with a 2010 population of 390,724...
and San Diego
San Diego, California
San Diego is the eighth-largest city in the United States and second-largest city in California. The city is located on the coast of the Pacific Ocean in Southern California, immediately adjacent to the Mexican border. The birthplace of California, San Diego is known for its mild year-round...
. As of September 2011, there were 439,648 total licensees under the DRE.
History
The California Legislature enacted the nation's first real estate license law in 1917. Providing for the licensing and regulation of real estate licensees, this law continues to serve as a model for similar legislation in many other states. The DRE continues to enjoy a nationwide reputation as a leader in real estate licensing and regulation.Real Estate Commissioner
The Real Estate Commissioner is appointed by the Governor, and serves as the chief executive of the Department of Real Estate.The Commissioner's role is to facilitate the administration and enforcement of the Real Estate Law and the Subdivided Lands Law, the Commissioner is empowered by law to issue regulations. Known as the Regulations of the Real Estate Commissioner, these have the force and effect of law.
In enforcing the provisions of the Real Estate Law, the Commissioner has the authority, if supported by the evidence obtained, to hold formal hearings to decide issues involving a licensee or a license applicant. Such hearings may result in the suspension, revocation or denial of a real estate license. The Commissioner also has the authority to issue Desist and Refrain Orders to stop activities which are in violation of the Real Estate Law or the Subdivided Lands Law.
It is the Commissioner's responsibility to enforce these laws in a manner which achieves maximum protection for real estate consumers. In administering the laws and regulations, the Commissioner exercises judgment impartially, with fairness to both the consumer and the industry.
Organization
The primary objective of the Department of Real Estate (DRE) is the protection of the public interest in regard to the offering of subdivided lands, and the handling of real estate transactions by licensees. To accomplish this, a standard of knowledge, measured by written examination, is established for licensing real estate agents and a minimum criterion of affirmative disclosure is set for qualifying subdivided lands offerings.At the same time the Department is protecting the public interest and increasing consumer awareness, it collaterally assists the real estate industry in expanding its standards and level of professional ethics and responsibility.
Licensing
If a person wishes to engage in the real estate business and to act in the capacity of, advertise, or assume to act as a real estate broker or real estate salesperson within the State of California, a real estate license must first be obtained from the DRE.Before an applicant for a real estate salesperson license may obtain a license, he or she must apply for and pass a real estate examination and fulfill certain real estate education requirements. In most cases, a broker applicant, in addition to required real estate education, must also have two years of real estate experience before applying for the exam. Broker and salesperson licenses are issued for a four-year period. In general, both types of licenses may be renewed by submitting the appropriate fee and application, and evidence of completion of 45 hours of DRE approved continuing education courses (to include required courses in ethics, agency relationships, trust fund handling, and fair housing).
Enforcement and Audits
Investigations are made by the Department's Enforcement and Audit Sections on the basis of written complaints received from the public alleging possible violations of the Real Estate Law or the Subdivided Lands Law by licensees or subdividers. If an inquiry into the matter substantiates that there has been a violation, the Department may take formal disciplinary action. This action, depending on the nature of the complaint, may result in the suspension or revocation of a license, issuance of a restricted license, or filing of an Order to Desist and Refrain. Some violations may result in civil injunctions, criminal prosecutions, or substantial fines.Recovery
The Consumer Recovery Account is a separate account of the Real Estate Fund. Currently, 12% of all license fees collected is credited to this account. When a member of the public obtains a qualifying judgment against a real estate licensee as a result of fraud, misrepresentation, deceit or conversion of trust funds on the part of a licensee acting as an agent in the transaction, under specific conditions of law, that person may seek reimbursement from the Recovery Account for actual and direct loss to a statutory maximum.Subdivisions
The purchase of real estate is the largest single investment most Californians make during their lifetimes. Subdivision laws enforced by the Department help ensure that subdividers deliver to buyers what was agreed to at the time of sale. These laws cover most standard subdivisions and various types of common interest developments (of 5 or more lots or units), time-shares, certain undivided interest developments, and out-of-state time-share subdivisions offered for sale in California. Before real property which has been subdivided can be marketed in California, the subdivider must obtain a public report from the DRE. The public report discloses to prospective buyers pertinent information about a particular subdivision. Prior to the issuance of a public report, the subdivider must file an application along with supporting documents with respect to representations made in the application. If improvements to the subdivision are not complete at the time of filing the application, the subdivider must also submit evidence to the Department that adequate financial arrangements have been made for their completion.Mortgage Loan Activities
In the area of mortgage loans, the Department monitors certain activities of real estate licensees doing business as mortgage lenders and mortgage brokers. With respect to those mortgage loan brokers whose business activity meets the statutory threshold criteria, reports are submitted to the Department to assist DRE in surveying broker compliance with the law.Publications
The Department offers many publications on topics of current interest to the consumer and licensees, such as the Real Estate Reference Book, which provides general information on many aspects of real estate practice; and the Real Estate Law book and CD, which contains the current Real Estate Law, the Commissioner's Regulations, and pertinent excerpts from other California codes.The Real Estate Bulletin, published quarterly, is furnished to all licensees. This highly informative newsletter keeps readers current on recent changes in the Real Estate Law, DRE policies, as well as timely industry concerns.
Vision
To be the Champion for Public Protection in Real Estate.The vision of the future for the Department is focused upon adopting innovations that will create new standards of excellence in service offerings and enhance consumer protection by:
- Incorporating advanced technology in its processes to better serve the industry and the public.
- Improving the accessibility to information that is progressive and secure.
- Expanding the knowledge base of staff.
- Maximizing enforcement efforts to address violations of the Real Estate and Subdivided Lands Laws.
- Providing licensing, subdivision qualification and consumer-related services conveniently and timely.
- Promoting consumer outreach to facilitate the making of informed decisions in real estate transactions.
- Adapting to the changing business environments of the real estate industry.
- Providing leadership in housing issues in California.