This revision prevents any person with a real estate license from violating laws which govern the scope of that person’s duty as a licensee.

Business and Professions Code 10176
Amended by S.B. No. 53

Effective: January 1, 2012

Any person acting in violation of their duties required by licensing laws may have their license temporarily suspended or permanently revoked by the Real Estate Commissioner (Commissioner) upon receipt of verified complaint in writing for any of the following crimes:

  • making a substantial misrepresentation;
  • making false promises of a character likely to influence another’s behavior;
  • making false promises or continued misrepresentations through real estate salespersons;
  • acting on behalf of more than one party in a transaction without consent of all parties;
  • commingling with his or her own money or property or any money or property held for others;
  • receiving compensation for the authorization of a licensee to perform any acts described in Section 10131 detailing the duties of a real estate broker where the agreement does not contain a definite date of termination;
  • accepting any undisclosed amount of compensation;
  • using provisions allowing the licensee an option to purchase in an agreement in which the licensee receives compensation;
  • committing any fraudulent conduct;
  • obtaining a signature of a prospective purchaser without first having written authorization that the prospective property is for sale, lease or rent;
  • failing to disburse funds to the lender or to any other authorized commitment during the mortgage loan transaction; or
  • intentionally delaying the closing of a mortgage to increase costs to the borrower.

Any of these actions are a violation of the person’s license if it occurs during the scope of the person’s duties as a licensee.