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What Does The California Department Of Real Estate Do?

Last updated on April 7, 2021

What Does The California Department Of Real Estate Do?

The California Department of Real Estate is also commonly called the Department of Real Estate or just DRE. Its primary objectives are to protect public interests and promote awareness. The organization achieves these things through licensure, education, regulation, and enforcement of the real estate markets in the state. In 1917, California established its first real estate license law. That same code proceeds to serve as a guide for the legislation of many places throughout the United States today. The California Department of Real Estate has an upstanding reputation across the country. It is recognized as a leader for its licensing and regulation practices.

The Governor appoints a Real Estate Commissioner to serve as the chief executive of the DRE. In 2004, Governor Arnold Schwarzenegger selected John Davi for the position, and he still holds the post today. Responsibilities vary, but some of the more critical duties include enforcing applicable laws and holding hearings for the suspensions or revocations of licenses. The Commissioner even has the power to issue Desist and Refrain Orders to stop activities when the proof is obtained that shows violations have occurred. Read further to learn about some ins and outs of the California Department of Real Estate.

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Is Getting Into Real Estate Worth The Effort?

Salaries for real estate professionals in California vary between locations. However, research by salary.com shows that annual wages usually range from $43,821 to $57,058. Of course, there are other things to think about before jumping head first into a new career though. For example, people often have to pay for education, certifications, insurance, and advertising. So, before up and making a life-changing switch, visit the California Department of Real Estate website to view the various requirements.

How Does The California Department Of Real Estate Fund Daily Operations?

The DRE has five district offices located in the cities of Oakland, Fresno, Los Angeles, Sacramento, and San Diego. At these locations, employees fulfill the institution’s obligations as required by the Subdivided Lands Law and the Real Estate Law. Just like any other business, the California Department of Real Estate needs funds to complete these tasks. The revenue comes from various places such as license and permit fees as well as subdivision public reports.

Taking The DRE Exam

Becoming a California real estate salesperson can be exciting, challenging, and rewarding. Before applying to take the test, there are some requirements that the applicant needs to meet. For instance, the candidate must be 18-years of age, and he or she must successfully pass some pre-licensing courses. The classes include…

  • Real Estate Practice
  • Real Estate Principles

Along With At Least One Of These:

  • Property Management
  • Real Estate Appraisal, Economics, Or Finance
  • Real Estate Office Administration
  • Legal Aspects Of Real Estate

The applicant must also show proof of residency. They do not have to live in California to obtain a license, but the process is a bit different for out of town residents. The exam format is subject to change at any time, but currently, it is given electronically in Fresno, La Palma, Oakland, Sacramento, and San Diego.

How Long Does The California Department Of Real Estate Test Take?

Qualifications, as well as the length of the test, vary by which exam a person is taking. So, make sure you have all of your ducks in a row before signing up. The Salesperson examination consists of 150 multiple choice questions, and the taker should expect to spend 3-hours and 15-minutes completing them. Meanwhile, the broker test has 200 multiple choice problems. The participants are given 2 1/2 hours in the morning to finish 100 of them and another 2 1/2 hours in the afternoon to complete the rest. Regardless of which exam a person is going to be doing, it is a good idea for them to show up 30-minutes before the session begins.

The DRE Handles Renewals

If the individual passes the exam with at least a 70%, they can send in the proper documentation and fees to get their license. The California Department of Real Estate issues certifications that remain good for a period of 4-years. Before it expires, the person should meet their continuing education requirements and have the license renewed. Don’t fret if you are running a little late or behind schedule. People have the opportunity to renew for up to 2-years after the expiration date. However, it is worthy of mentioning that a person cannot partake in real estate activities that need a license until late fees have been paid and an application has been filed.

The California Department Of Real Estate Has A Cite And Fine Program

Licensed and unlicensed persons that violate the Real Estate and Subdivided Lands Law may be issued citations. These tickets are usually handed out for technical or minor infringements. Often, the note is accompanied by an order of correction. This California Department of Real Estate document gives the person a specific time frame to identify and fix the violation. They must then submit a statement to the DRE stating that the corrections have been made.

Fine amounts fluctuate depending on considerations outlined in Commissioner’s Regulation 2907.2. It allows the California Department of Real Estate to take things such as consumer injuries, the significance of the violation, and aggravating or mitigating factors into account. Now onto the horrible part, the fee. People partaking in activities that require a license but do not have the valid credential may receive fines up to $2,500 for each unlicensed act. Meanwhile, licensees can also receive penalties of up to $2,500 per citation.

The cited individual can contest the violation by requesting a formal hearing. This appeal must be made within 30-days though, or the citation becomes final with no review available. So, there is not necessarily a cut and dry answer to the question, what does the California Department of Real Estate do? The establishment performs a lot of tasks related to real estate.

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