These amendments define the terms and statements which can be used in the license designations required of real estate licensees and industry professionals in advertisements and other materials distributed to the public.
DRE Regulation Article 9 Section 2770.1
Amends Article 9 and Section 2770.1
Effective: October 26, 2011
Terms and statements fulfilling real estate license designation requirements
If a Department of Real Estate (DRE) licensee publishes, circulates or distributes material in a newspaper, periodical or mailing related to his real estate-related activities which require a license, the licensee must include with the material a license designation disclosing he is performing activities which require a license. (These materials exclude classified rental advertisements listing the telephone number or address of the rental property.) [Calif. Business and Professions Code §10140.6 (a)(c)]
Use of the following terms and abbreviations, or similar terms and abbreviations, fulfill the license designation required in Calif. Business and Professions Code §10140.6 (a)(c):
- loan correspondent;
- bro.; or
However, use of the terms and abbreviations above does not fulfill the license designation required of:
- a licensee or mortgage loan originator (MLO) disclosing his DRE number or Nationwide Mortgage Licensing System (NMLS) identifier in any advertisement distributed primarily in California [Calif. Business and Professions Code §10235.5]; and
a person, placing a loan advertisement distributed primarily in California, disclosing the license under which the loan will be arranged and the state regulatory entity supervising the loan transaction (if the advertisement is related to unlicensed lending activity, the license designation must disclose the loan would be arranged by an unlicensed person not supervised by a state regulatory entity). [Bus & P C §17539.4].
DRE Regulation Article 16 Section 2847.3
Amends Article 16 and Section 2847.3
Effective: October 26, 2011
Use of either of the following statements fulfills the requirements of Business and Professions Code §10140.6(a)(c), §10235.5 and §17539.4 explained above in Article 16 Section 2847.3:
- Real estate broker, California Department of Real Estate; or
- California Department of Real Estate, real estate broker.
A dash (–) may be used in place of the comma in either of the statements above. The type size of either of the statements must be no less than the smallest type size used in the advertisement copy.
The word “California” may be abbreviated as “CA,” “CAL” or Calif” and the word “Department” may be abbreviated as “Dept.”
Editorial note – Calif. Business and Professions Code §17539.4 does not apply to banks, bank holding companies, savings associations, federation associations, industrial loan companies, credit unions or any subsidiary or affiliate of these entities if any of these entities are not licensed. Thus, neither DRE Regulation Article 9 Section 2770.1 nor DRE Regulation Article 16 Section 2847.3 apply to any of these mortgage banking entities.
This legislation specifies how a real estate broker employing agents may appoint branch office managers and points out the responsibilities of an appointed manager.
Conditions for appointing branch office managers
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.
This law re-defines “good standing” as used to calculate whether a licensee has met the Department of Real Estate’s (DRE’s) 70/30 continuing education exemption.
DRE’s “good standing” definition includes two-year grace periods
Calif. Code of Regulations §3012.3; Business and Professions Code §10170.8
Effective: August 31, 2011
An individual who is at least 70 years old and has held a Department of Real Estate (DRE) license in good standing for at least 30 continuous years may submit paperwork to the DRE for an exemption from the DRE continuing education requirement, called the 70/30 rule.
A license is in good standing if it has not been suspended, revoked or restricted due to disciplinary action, and has been renewed on time or renewed late within the statutory two-year grace period. If a license is renewed within the grace period, the time in which the license is temporarily expired before it is renewed counts towards calculating the 30-year requirement.
This law clarifies DRE licensee use of nicknames in the practice of real estate.
Rules for individual DRE licensees using nicknames
Calif. Code of Regulations §2731
Effective: September 10, 2011
An individual who is a Department of Real Estate (DRE) licensee may use a nickname in place of his legal first name in his real estate practice, provided the nickname is accompanied by his last name and his DRE license number.