California’s Department of Real Estate (DRE) is about to make it easier for non-residents to become licensed real estate agents and brokers.
The DRE has been licensing non-citizen real estate agents and brokers in California since 2016. In addition to accepting a Social Security number, the 2016 law changes directed the DRE to also accept a licensee applicant’s individual tax identification number (ITIN).
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Real estate licensure to open to noncitizen residents with individual tax IDs (ITINs)
ITINs are used by resident non-U.S. citizens, who lack the citizenship required for a Social Security number. The lack of Social Security number has traditionally kept many non-citizen residents from becoming licensed or credentialed in a number of jobs. The problem was that many individuals were practicing illegally, without a license. Expanding licensure to those with ITINs gave the DRE (and other state departments and agencies) authority over these previously-unlicensed individuals.
While the 2016 law opened the door for non-citizens to become licensed, 2019’s SB 695 goes a step further. It prohibits the DRE from requiring information on the applicants’ citizenship or immigration status. [Calif. Business and Professions Code §30(a)(2)(B)]
Further, the DRE is prohibited from denying licensure solely on the basis of an applicant’s citizenship or immigration status. [Bus & P C §30(a)(2)(C)]
The DRE needs to make these changes no later than July 1, 2019.
Editor’s note — These sweeping changes aren’t limited to real estate. The new law applies to the DRE, as well as other state licensing and credentialing organizations, including the State Bar and the Commission on Teacher Credentialing.
first tuesday has advocated for this change, as it encourages undocumented immigrants who are unlicensed but undertaking the responsibilities of an agent to become licensed, and thus be overseen by the DRE.
California’s open attitude toward migrants
California is relatively friendly to undocumented immigrants and other noncitizens, enabling this population to participate almost fully in the state’s economic and business activities.
The state’s openness toward undocumented immigrants isn’t just a result of its progressive political leanings. Given the size of this population, it’s an economic necessity.
As of 2014, approximately 2.4-2.6 million undocumented immigrants resided in California, according to the Public Policy Institute of California. That’s roughly 6% of the state’s total population. Therefore, enabling these residents to work, pay taxes and contribute to the state’s economy is crucial to keep the state operating at a healthy level.
For real estate, the issue is twofold, as undocumented immigrants may:
- practice as real estate agents without becoming licensed, thus avoiding DRE oversight; and
- hesitate to purchase or sell real estate, as they seek to avoid anything that documents their unlawful presence and that may lead to their deportation.
Undocumented immigrants are understandably more likely to seek assistance in buying or selling from a fellow immigrant, who understands their situation and can help them take out a mortgage and buy with an ITIN.
These 2019 changes make it more likely for undocumented immigrants to take the leap into a career in real estate, and with more agents like them, more likely for undocumented homebuyers to take the leap into homeownership.
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The choas in California starts at our new
Governorship which tends to follow the
Last idiot that held office there . All they want
Is to pick our pockets through taxation . And write and pass flawed loans and laws..
It’s to bad that it’s come this far and chasing
Everyone out of California. Social misfits are in charge. Such a shameful legislator and wasted
effort by Californians as there abused all the way to the Bank . Not to mention that the Banks and lenders are the true entity’s in need of transparency. Their all thieves as Obama gave them their walking papers with impunity plus billions as a payoff only to be paid by Americans taxpayers with still no transparency there is no truth . Lobbyists rule California law.
Where’s the justice in that system? There isn’t.
“first tuesday has advocated for this change, as it encourages undocumented immigrants who are unlicensed but undertaking the responsibilities of an agent to become licensed, and thus be overseen by the DRE. ”
Why is first tuesday a social justice warrior website?
Can anyone recommend another company to use for continuing education?
I’ve taken many CE cources from OnlineEd and the content of their material is refreshingly non-political.
I agree with most of the above comments, illegal is illegal and should not be rewarded. There are many ways to come to this country legally and obtain legal residency and/or citizenship, reward those that choose the right path. The idiots in Sacramento should not demean those who have the courage to do it right and reward the law breakers.
First, some of your information is not accurate and I challenge any lawyer at First Tuesday to defend it. You stated “ITINs are used by resident non-U.S. citizens, who lack the citizenship required for a Social Security number.” You do not need to be a U.S. Citizen to get a social security number. What you need is legal entry or status (presenting your I-94) in order to get a social security number and the card. The card will however come with a restriction on it for non authorization to work in the U.S. Once an adjustment of status, along with an employment authorization or just an employment authorization is filed with the USCIS, the restriction on the social security card will be lifted (if approved) and a new unrestricted social security card will be issued after approval and that takes about 2 weeks. Have your lawyers check it so you won’t misinform the public and real estate agents!
People with legal status receives a permanent resident alien card either for 2 yrs or 10 yrs depending upon their reason for entry into the U.S. ITINs are used by employers, corporations, partnerships, LLC, and a loophole for undocumented people who don’t have legal status to work here. While I agree with giving licenses to legal residents, I don’t for people who entered the country illegally. I’m a big supporter of immigration reform, and definitely not the kind of reform the current President is advocating. However, why should we as a country allow illegal entry, illegal work, and illegal businesses to be conducted within our borders? I can’t do that in other countries without government permission and without in many cases, reciprocity agreements or treaties between the U.S. and other foreign countries. I travel extensively and have asked these questions from ex-pats who are working aboard and/or have businesses aboard. Your statement about allowing undocumented people to come from behind the shadows and work openly is ridiculous and obtain other professional licenses as well is also ridiculous. If that’s the case, then we should allow undocumented people to become lawyers, doctors, RNs, police officers…etc. We should have them perform surgery on you when you’re sick without regard to their educational background and without regard to any legal protocol in this country. People who are documented (legal residents) go through extensive background checks, educational checks, health and welfare checks, ethics check, financial responsibility checks (so they won’t become a charge to the state)…etc. before obtaining legal status in the U.S. Why should we have a different set of rules for those who entered illegally and give them favorable status and allow them to represent people as their agent? If I’m them, I would much prefer going the illegal route than the legal route. It’s much easier and I can slip in without all the checks. That’s not accountability, that’s irresponsibility.
If you don’t agree with that then why not drop all citizenship and legal status questions from everything and allow no special protections of U.S. Citizens either domestically and aboard? Why have rules and laws since it doesn’t matter if you’re legally here or not. Why not get rid of passport requirements for entry into the U.S. when the rest of the world will require Passports and/or Visas? If anyone can come here and work; if anyone can come into the U.S. without checks; then let’s get rid of passports and visas as a requirement for entry into the U.S. Let’s abolish the USCIS since coming here illegally doesn’t matter AND it’s cheaper and faster. California is a crazy state with insane politicians for doing this. This erodes our profession, but build it up. They want us to act legally, but allow those who have undocumented (illegal) status to work and uphold the highest standards in the field. Tell me if that’s not insane? Be ethical, but you can break the law too.
I’m all for a path to citizenship, but only if they go thru the process that is fair not only to them, but to American citizens and legal residents as well. I love California, but it’s one quack pot state and your arguments above is weak, just like the President’s argument the other day for invoking a national emergency! Geez Louise!
Correction: This erodes our profession, NOT build it up.
Absolute erosion of the Real Estate Profession! Makes a mockery of the occupation and it’s Code of Ethics, to which I have devoted 40 years. SHAME ON ANY LEGISLATOR THAT APPROVES OF THIS SB 695!
Well written and true! This is an outrage to every immigrant that came here legally and to follow the rule of law in the United States.
It encourages illegal immigration and is a slap in the face of every law biding real estate professional.
Why are we giving preferential treatment to those that chose to disregard our laws in the first place?
Why? Because it’s all about votes and power!
I, for one, am outraged by this SB-695 imposition upon an unsuspecting public! That 6% of the population know to already be openly violating Federal Laws, should not be granted licensing. Fiduciary relationships CANNOT be established with persons already violating laws. To pragmatize further violation of law is simply insane!
i agree, thats why California is a laughing stock around the Country. Excuse my directness, a bunch of idiots with no common sense. California somehow is filled with a bunch of following sheep. Im seriously going to move out of here.