Calif. Business and Professions Code §§10087, 10100, 10152, 10166.06, 10460, 10461, 10463 and 10153.01
Added or amended by S.B. 875
Effective date: January 1, 2013

CalBRE state exam integrity

California Bureau of Real Estate (CalBRE) licensing examinees are prohibited from:

  • communicating with another examinee or any person other than a proctor or exam official during the exam;
  • copying answers from another examinee or permitting another examinee to copy one’s answers;
  • allowing another person to take all or part of the examinee’s exam;
  • removing exam materials from the exam room without authorization;
  • reproducing or aiding the reproduction of any portion of the exam without authorization;
  • using any devices, materials or documents during the examination which are not authorized for use, including notes, crib sheets, textbooks and electronic devices;
  • failing to follow any exam instruction or rule related to exam security; and
  • providing false, fraudulent or misleading information concerning education, experience or other qualification on an exam application.

Applicants who violate these rules may be barred from taking a licensing exam or from holding an active real estate license for up to three years.

Mortgage loan originator exam and endorsement

A licensee who fails three consecutive mortgage loan origination endorsement exams is now able to retest more than three times. However, they are still required to wait at least 30 days between exams, and at least six months between every three exam attempts.

Licensees who are in the military are currently able to waive their real estate license renewal requirements for the duration of their active military service. They are now also able to waive the renewal of their mortgage loan originator endorsements for the duration of their active military service.

Corporation real estate license applications

In connection with a corporation real estate license application, any officer, director or person owning 10% or more of the stock in the corporation is to provide proof of their honesty and truthfulness. The previous threshold for the requirement was any individual who owned more than 10% of the stock in the corporation.

Changes to procedure for suspension, reinstatement or denial of a license

A real estate licensee or applicant who is suspended or barred from a position of employment, management or control is now also barred from participation in a real estate licensing examination for up to 36 months.

A licensee who submits a petition for the reinstatement of their license or reduction of a penalty is required to submit their fingerprints with the petition.

Instead of automatically initiating a hearing upon denying an application for a license or mortgage loan originator endorsement, the CalBRE will now:

  • provide notification of the denial;
  • state the reasons for denial;
  • inform the applicant they have the right to a hearing if written request is made within 60 days of the denial; and
  • state the earliest date on which the applicant may reapply.