This legislation specifies how a real estate broker employing agents may appoint branch office managers and points out the responsibilities of an appointed manager.

Business and Professions Code §10164, 10165
Added by S.B. 510
Effective: July 1, 2012

An employing broker, or a corporate designated broker, may appoint a real estate licensee as the office manager of a branch of the employing broker’s real estate business. A licensee may not be appointed as an office manager if the licensee:

  • holds a restricted Department of Real Estate (DRE) license;
  • is or has been debarred by the DRE; or
  • is a salesperson with less than two years of full-time real estate experience within five years before the appointment. [For more information on DRE debarment, see the January 2012 first tuesday legislative watch, Broker responsibilities related to debarred licensees.]

To appoint an office manager, the employing broker and the office manager must enter into a written employment contract, a copy of which the employing broker must retain in his files. [See first tuesday Form 510]

On employing an office manager, the broker must notify the DRE by preparing a form provided by the Real Estate Commissioner.

Editor’s note – Though first tuesday already makes available Form 510 — Office Manager Employment Agreement to document the broker-office manager employment contract, the DRE is still in the process of creating an electronic form system to comply with DRE notification requirements. Employing brokers will be able to access the electronic form through the existing e-Licensing online portal and use it to notify the DRE of a branch office manager’s appointment, termination or change in appointment. The electronic form system is scheduled to be completed before Calif. Business and Professions Code §10164, 10165 becomes effective on July 1, 2012 and as early at May 2012.

On termination or change in the appointment of an office manager, the employing broker must immediately notify the DRE commissioner in writing.

The duties of the appointed office manager may include the following:

  • overseeing day-to-day operations;
  • supervising the licensed activities of licensees; and
  • managing clerical staff employed in the branch office or division.

The DRE commissioner may suspend or revoke the license of an appointed office manager who fails to properly supervise the licensed activities of a branch office. Also, the DRE commissioner may suspend or revoke the license of any licensee for violating this section.

This section shall not be interpreted to limit an employing broker’s responsibility to supervise the licensed activities of salespersons in his employment or to supervise the activities of the business which require a real estate license.