Today we’re answering a very basic, but very important question: what does the California Department of Real Estate (DRE) do?
While most of you reading this are probably new to real estate, even experienced real estate agents might be confused about what the California Department of Real Estate is. That’s because the state of California has changed names multiple times.
Until 2013, this government organization was known as the California Department of Real Estate, just like it is today.
However, in 2013, the name changed to the California Bureau of Real Estate (CalBRE). This caused a lot of confusion and headaches since documents, forms, contracts, and other things needed to be rebranded and rewritten.
Right as everyone got used to CalBRE, it changed again in 2018 back to DRE.
If you’re just getting into real estate, be prepared for bureaucracy like that that doesn’t make sense. It’s just part of the job.
The California Department Of Real Estate Regulates A LOT!
Believe it or not, since early 2006, the state of California has had no fewer than a half-million active real estate licensees at any given time. Due to the ever-increasing number of California real estate licensees, the California Department Of Real Estate has evolved quite a bit over time.
To help facilitate their many duties and obligations, they created an award-winning system called ARELLO where they can more easily receive information as well as inform the public and real estate professionals of important information such as regulatory changes or changes in real estate laws.
VIDEO: What Is ARELLO?
Most Common Tasks Performed By The California Department Of Real Estate
One of the biggest tasks the California Department Of Real Estate performs is checking test results from those who took a real estate license exam. They also set the testing schedule, renew salesperson and broker licenses, change a salesperson’s employing broker, file mailing address changes, and request continuing education extension/exemption.
Example Of A Regulation Performed By The California Department Of Real Estate
The Internet Advertising Regulations, for example, are set forth by the California Department Of Real Estate. To get more specific, the Commission’s regulation 2770 states the following…
Anyone who advertises or otherwise disseminates information about services over the Internet (including the World Wide Web or similar electronic common carrier systems) will NOT be considered to be in any manner acting in the capacity of, or advertising as, a real estate broker in California, AS LONG AS any ONE of these conditions applies:
(1) If the advertisement or other information involves a service, BUT IS:
- NOT directed to any particular person or customer located within California;
- LIMITED to general information about the services offered to customers or the public in general; AND
- Includes the following words: “The services referred to herein are not available to persons located within the State of California.”
(2) If the advertisement or information does not involve a service provided in connection with activity for which a real estate license is required: OR
(3) If the advertisement or information is not being published, circulated, or transmitted on behalf of another person(s).
It is NOT required for a person who advertises or disseminates information about providing a service to have a real estate license if any of the following conditions apply:
- The person who is publishing or otherwise circulating the information is exempt from license requirements as set forth in the Business and Professions Code, Sections 10133 or 10133.1;
- The services do not include any actions for which a license is required; or
- Before there is any direct communication with a specific customer, the business person already has implemented policies and procedures in place for such communication, keeping in mind that the person replying to the communication must not violate the law by acting in the capacity of a real estate licensee; AND
- All advertising and information that is made by a California real estate broker MUST STATE SO CLEARLY. Under the B&P Sections 10235.5 and 10140.6, licensees
The California Department of Real Estate, also known as DRE, is headed by the Real Estate Commissioner. They perform tasks such as administering real estate license laws, advertising regulations, clients, customers, and more.
The chapter then goes on to reiterate that the Commission’s Regulation 2770 relates to advertising real estate services on the Internet.