Business and Professions Code — Part 2 | BPC — United States — California law | Esheria

Business and Professions Code

Part 2 of 52 · provisions 201–400

This section says the act is called the Business and Professions Code.

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This part may be cited as the Real Estate Law. This section says chapter definitions apply only to this part, unless the text says otherwise. “Commissioner” means the Real Estate Commissioner. “Department” means the Department of Real Estate in the Business and Consumer Services Agency. This section says certain references like “bureau” and “Real Estate Division” mean the Department of Real Estate, and it states the section becomes operative on July 1, 2018.

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Provisions of Business and Professions Code

Showing 200 of 10,364

  1. 10167.11.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

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    This section makes certain false advertising and improper property-referral conduct a violation for licensees and their employees or agents.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.11. It shall be a violation of this article for any licensee or any employee or agent of a licensee to do the following: (a) Make, or cause to be made, any false, misleading, or deceptive advertisements or representations concerning the services that the licensee will provide to prospective tenants. (b) Refer a property to a prospective tenant knowing or having reason to know that: (1) The property does not exist or is unavailable for tenancy. (2) The property has been described or advertised by or on behalf of the licensee in a false, misleading, or deceptive manner. (3) The licensee has not confirmed the availability of the property for tenancy during the four-day period immediately preceding dissemination of the listing information. However, it shall not be a violation to refer a property to a prospective tenant during a period of from five to seven days after the most recent confirmation of the availability of the property for rental if the licensee has made a good faith effort to confirm availability within the stated four-day period, and if the most recent date of confirmation of availability is set forth in the referral. (4) The licensee has not obtained written or oral permission to list the property from the property owner, manager, or other authorized agent. (Amended by Stats. 2000, Ch. 473, Sec. 7. Effective January 1, 2001.)
  2. 10167.12.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

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    The commissioner may suspend, deny, or revoke a licensee’s license, and must hold a hearing to determine whether those grounds exist.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.12. (a) The commissioner may suspend, deny, or revoke the license of a licensee or the license of the licensee to operate at one or more locations for either of the following: (1) A violation of this article by a licensee or by an employee or agent, including a designated agent, of the licensee. (2) A conviction of a licensee, or a designated agent, or of an officer, director, or owner of 25 percent or more of the shares of a corporate licensee for a crime which is substantially related to the qualifications, functions, or duties of a prepaid rental listing service licensee. (b) For the purpose of determining whether grounds exist for suspending, denying, or revoking the license of a licensee, the commissioner shall hold a hearing in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (Amended by Stats. 2000, Ch. 473, Sec. 8. Effective January 1, 2001.)
  3. 10167.13.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

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    A prepaid rental listing service license issued by the department lasts two years, and a timely renewal filing can let the licensee keep operating at the locations covered by the prior license if the renewal fee is paid.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.13. A prepaid rental listing service license issued by the department shall be for a period of two years. An application and fee for renewal filed with the department before midnight of the last day of the period for which a previous license was issued entitles the licensee to continue operating at all locations specified in the previous license for which a renewal fee is paid. (Added by Stats. 1980, Ch. 1051, Sec. 2. Effective September 26, 1980.)
  4. 10167.14.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

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    A county superior court may stop unlawful acts or practices under this article by order, if the proper public official files a complaint.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.14. Whenever any person has engaged or threatens to engage in any acts or practices which constitute, or will constitute a violation of a provision of the article, the superior court of the county in which the acts or practices have taken place, or are about to take place, on complaint of the commissioner, the attorney general, district attorney, or city attorney, may enjoin such acts or practices by appropriate order. The proceedings under this section shall be governed by Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that no undertaking shall be required. (Added by Stats. 1980, Ch. 1051, Sec. 2. Effective September 26, 1980.)
  5. 10167.15.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

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    A person, including a corporate officer, director, or employee, who willfully violates any provision of this article commits a misdemeanor.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.15. Any person, including an officer, director, or employee of a corporation who willfully violates any provision of this article is guilty of a misdemeanor. (Added by Stats. 1980, Ch. 1051, Sec. 2. Effective September 26, 1980.)
  6. 10167.16.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

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    Certain licensed persons or corporations are also subject to additional listed real estate code provisions.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.16. A person or corporation licensed pursuant to this article and not engaging in acts for which a real estate license is required under Article 1 (commencing with Section 10130) of Chapter 3 of Part 1 of Division 4, shall be subject, in addition to the provisions of this article, to the provisions of Chapter 1 (commencing with Section 10000) and Chapter 2 (commencing with Section 10050) of Part 1 of Division 4, and to Sections 10450, 10452, 10453, and 10454. (Added by Stats. 1980, Ch. 1051, Sec. 2. Effective September 26, 1980.)
  7. 10167.17.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

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    The commissioner must adopt regulations making prepaid rental listing service licensees and applicants subject to the same licensure provisions that apply to real estate licenses in the listed sections.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.17. The commissioner shall, by regulation, make prepaid rental listing service licensees and applicants for prepaid rental listing service licenses subject to the same provisions respecting licensure as are applicable to real estate licenses under Sections 10151.5, 10156.5, 10156.6, 10156.7, 10200, and 10201. (Added by Stats. 1987, Ch. 1031, Sec. 3.)
  8. 10167.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

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    A person may not run a prepaid rental listing service unless licensed for that business or as a real estate broker.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.2. (a) It is unlawful for any person to engage in the business of a prepaid rental listing service unless licensed in that capacity or unless licensed as a real estate broker. (b) (1) The requirements of this article apply only to the provision of listings of residential real properties for tenancy by prepaid rental listing services. Except if expressly provided otherwise in this article, the requirements of this article do not apply to any other goods or services sold by a prepaid rental listing service as long as the purchase of those goods or services is not required to obtain those listings, and as long as the purchase of those goods or services is not included in the same contract as the contract to provide those listings, and as long as the contract to provide those listings clearly specifies that the purchase of any other goods and services is optional, and as long as the price charged for any other goods and services is fair and reasonable. (2) In an action alleging that the price charged for any other goods and services is not fair and reasonable, the burden shall be on the commissioner to demonstrate that the price charged unreasonably exceeds the fee customarily charged for the same or comparable goods or services in the community in which the prepaid rental listing service operates. The fact that the price charged for goods or services exceeds the cost incurred by the prepaid rental listing service shall not render the price charged for the goods or services to be unfair or unreasonable, so long as the price charged does not unreasonably exceed the fee customarily charged for the same or comparable goods or services in the community in which the prepaid rental listing service operates. (Amended by Stats. 2001, Ch. 159, Sec. 30. Effective January 1, 2002.)
  9. 10167.3.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

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    License applications for a prepaid rental listing service must be filed separately for each location, use department forms, be signed, and include the required fees. A real estate broker may run such a service at a licensed office only if the business is under immediate supervision.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.3. (a) A separate application for a license as a prepaid rental listing service shall be made in writing for each location to be operated by a licensee other than a real estate broker. Each application shall be on forms provided by the department, shall be signed by the applicant, and shall be accompanied by an application fee of one hundred seventy-five dollars ($175), not to exceed two hundred twenty-eight dollars ($228), for the first location, and ninety dollars ($90), not to exceed one hundred seventeen dollars ($117), for each additional location of the applicant. Applications to add or eliminate locations during the term of a license shall be on forms prescribed by the department. A fee of ninety dollars ($90), not to exceed one hundred seventeen dollars ($117), for the remainder of a license term for each location to be added shall accompany the application. Forty dollars ($40), not to exceed fifty-two dollars ($52), of each application fee shall be credited to the Consumer Recovery Account. (b) A real estate broker may provide a prepaid rental listing service at a licensed office for the conduct of the broker’s real estate brokerage business if the business at the office is conducted under the immediate supervision of the broker or of a real estate salesperson licensed to, and acting on behalf of, the broker. (Amended by Stats. 2024, Ch. 41, Sec. 4. (SB 164) Effective June 29, 2024.)
  10. 10167.4.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

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    The commissioner may require proof of honesty and truthfulness, may hold a hearing, may refuse a license if proof is unsatisfactory, and must require fingerprinting of the applicant and related persons.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.4. The commissioner may require such proof as they may deem advisable concerning the honesty and truthfulness of (a) any applicant for a license as a prepaid rental listing service, (b) the designated agents of the applicant, (c) the officers, directors, and any persons owning 25 percent or more of the shares of any corporation making such an application, or (d) any person owning or controlling a beneficial ownership interest of 25 percent or more in the entity making application before authorizing the issuance of a license for a location. For this purpose, the commissioner may hold a hearing in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code and may refuse to issue a license to an applicant who does not furnish satisfactory proof of their honesty and truthfulness or of the honesty and truthfulness of the corporate officers, directors, and shareholders. To assist in this determination, the commissioner shall require the fingerprinting of every original applicant, including designated agents, officers, directors, persons owning 25 percent or more of the shares of the corporate applicant, and persons owning or controlling a beneficial ownership interest of 25 percent or more in the entity making application. (Amended by Stats. 2025, Ch. 786, Sec. 22. (SB 774) Effective January 1, 2026.)
  11. 10167.45.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

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    The department must send fingerprint images and related information to the Department of Justice for specified prepaid rental listing service applicants, licensees, and certain reinstatement or penalty-reduction petitioners, and the Department of Justice must return a state- or federal-level response.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.45. (a) Pursuant to subdivision (u) of Section 11105 of the Penal Code, the department shall submit to the Department of Justice fingerprint images and related information required by the Department of Justice for all of the following, related to “prepaid rental listing services,” as defined in Section 10167: (1) Original applicants for a license as a prepaid rental listing service. (2) Licensees with a license as a prepaid rental listing service. (3) Persons who submit a petition for reinstatement of the person’s license or the reduction of a penalty, pursuant to Section 11522 of the Government Code. (b) The Department of Justice shall provide a state- or federal-level response, pursuant to subdivision (p) of Section 11105 of the Penal Code. (Added by Stats. 2025, Ch. 786, Sec. 23. (SB 774) Effective January 1, 2026.)
  12. 10167.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

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    A licensed location must be supervised by the licensee or a designated agent, and the licensee must notify the department within five days if a designated agent permanently stops serving.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.5. The business at a location licensed pursuant to subdivision (a) of Section 10167.3 shall be conducted under the immediate supervision of the licensee or a designated agent who is not a designated agent at any other location. Whenever a designated agent ceases permanently to be a designated agent at any location because of death, termination of employment, or any other reason, the licensee, within five days thereafter, shall give written notice to the department. A license issued for a particular location shall automatically expire 60 days after the time the business conducted at such location ceases for any reason to be under the charge of and managed by the designated agent of record with the department, unless within such 60-day period the licensee submits written notice of the new designated agent to the department. A designated agent of the licensed service may serve as designated agent for the location in question as well as for the location for which he or she is the designated agent of record during the period of 60 days. (Added by Stats. 1980, Ch. 1051, Sec. 2. Effective September 26, 1980.)
  13. 10167.6.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

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    A nonresident applicant for a prepaid rental listing service license must file an irrevocable consent with the license application.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.6. Every applicant for a prepaid rental listing service license who is not a resident of this state shall file with the application for a license an irrevocable consent that in any action arising out of the activities of the prepaid rental listing service commenced against him or her in this state, if personal service of process upon him or her cannot be made in this state in the exercise of due diligence, a valid service may be made upon him or her by delivering the process to the Secretary of State. Insofar as possible, the provisions of Section 1018 of the Code of Civil Procedure relating to service of process on the Secretary of State are applicable to this section. (Added by Stats. 1980, Ch. 1051, Sec. 2. Effective September 26, 1980.)
  14. 10167.7.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

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    Each licensee must provide the department with a $10,000 bond for each location and keep it in force, unless Section 10167.8 applies.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.7. Except as provided in Section 10167.8, each licensee shall provide to the department, and at all times maintain in force, a bond in the amount of ten thousand dollars ($10,000) for each location. The bond may be in the form of a corporate surety bond, or a cash deposit. A cash deposit may be deposited by the licensee in an interest-bearing account assigned to the commissioner, with interest earned thereon payable to the licensee. The bond or cash deposit may be utilized by the commissioner for the benefit of any unsatisfied judgment creditor in an action pursuant to subdivision (e) of Section 10167.10. (Amended by Stats. 2000, Ch. 473, Sec. 4. Effective January 1, 2001.)
  15. 10167.8.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

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    Section 10167.7 does not apply to certain prepaid rental listing services.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.8. The requirement of Section 10167.7 shall not apply to any prepaid rental listing service operated by: (a) a person exempt from the payment of federal and state income taxes; (b) an agency of the federal, state, or local government; or (c) a real estate broker conducting a prepaid rental listing service pursuant to a real estate license. (Added by Stats. 1980, Ch. 1051, Sec. 2. Effective September 26, 1980.)
  16. 10167.9.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

    Verify source ↗

    Before taking a fee, the licensee must give the prospective tenant a written contract, and the contract must include specified terms.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.9. (a) Prior to the acceptance of a fee, a licensee shall offer the prospective tenant a written contract, either on paper or in electronic form, which shall include at least the following: (1) The name and license number of the licensee and the addresses and telephone numbers of the principal office or location of the licensee and of the location, or branch office of a real estate broker, providing the listing to the prospective tenant. (2) Acknowledgment of receipt of the fee, including the amount. (3) A description of the service to be performed by the licensee, including significant conditions, restrictions, and limitations when applicable. (4) The prospective tenant’s specifications for the rental property, including, but not limited to: (A) Type of structure, including, but not limited to, detached single-family home, apartment, or duplex. (B) Location by commonly accepted residential area name, by designation of boundary streets, or by any other manner affording a reasonable means of identifying locations acceptable to the prospective tenant. (C) Furnished or unfurnished. (D) Number of bedrooms required. (E) Maximum acceptable monthly rental. (5) The contract expiration date, which shall not be later than 90 days from the date of execution of the contract. (6) A clause setting forth the right to a full or partial refund of the fee paid as provided in Section 10167.10. (7) The signature and printed full name of the licensee or of the designated agent, real estate salesperson, or employee acting on behalf of the licensee. The signature of any person, including any signature required by the terms of the contract to be provided by the prospective tenant, may be provided in any electronic form that provides a reasonable method of indicating that the individual whose signature is required authorized the contract to be signed in that electronic form. (8) A clause in bold type letters outlining the small claims court remedy available to the prospective tenant. (9) A clause in boldface type letters clearly stating that the purchase of any goods and services other than the provision of listings of residential real properties for tenancy is optional. (b) (1) The original of each contract, any separate contracts for required goods or services, refund claims, receipts and any other relevant documents shall be retained by the licensee for a period of not less than three years from the date of termination of the contract during that time the contract shall be subject to examination by a duly authorized representative of the commissioner. Any records retained pursuant to this subdivision that are stored in the ordinary course of business in digital media shall, upon request of a duly authorized representative of the commissioner, be provided on diskette, CD-ROM, or similar portable digital storage medium. For purposes of this subdivision, the “original” of a contract executed in electronic form shall be either the copy of the contract stored in digital media or a paper printout of that contract. (2) Any licensee, or employee thereof, shall dispose of the documents required to be kept pursuant to paragraph (1) by shredding or other appropriate means so that the identity of the prospective tenant may not be determined from the disposed information alone or in combination with other publicly available information. (c) The form of contract proposed to be used by a licensee to effect compliance with this section shall be filed with the department prior to use. Any modification of a form previously filed with the department, including a change in the name or business address of the licensee, shall also be filed prior to use. The department shall withhold the issuance or renewal of a license until the department has approved the contract. If a proposed modification to a contract has not been approved or disapproved within 15 working days of being filed with the department, the proposed modification shall be deemed approved. If a proposed modification or contract provision is disapproved, the department shall communicate that disapproval in writing to the licensee within 15 working days of being filed with the department, accompanied by a written justification of why the modification or contract provision is contrary to the requirements of this article. (d) Notwithstanding any other law, a contract for prepaid rental listing services executed in electronic form, and signed in any electronic form that provides a reasonable method of indicating that the individual whose signature is required authorized the contract to be signed in electronic form, shall be valid to the same extent as an executed written contract. Upon request by the customer, the licensee shall deliver an executed paper copy to the customer within five working days of receiving the request. (Amended by Stats. 2021, Ch. 431, Sec. 15. (SB 800) Effective January 1, 2022.)
  17. 10167.95.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. )

    Verify source ↗

    A licensee must give the prospective tenant a written refund notice before taking a fee. The notice explains refund rights, deadlines, and a small-claims remedy if the refund is not paid.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.3. Prepaid Rental Listing Service [10167 - 10167.17] ( Article 2.3 added by Stats. 1980, Ch. 1051, Sec. 2. ) ## 10167.95. Prior to the acceptance of a fee, and in addition to the contract required pursuant to Section 10167.9, a licensee shall provide the prospective tenant with the following written notice, in a type size of at least 12-point type: YOU MAY BE ENTITLED TO A REFUND IF YOU DO NOT RECEIVE THE SERVICES YOU HAVE BEEN PROMISED. COMPLETE TERMS AND CONDITIONS GOVERNING THE REFUND TO WHICH YOU MAY BE ENTITLED ARE CONTAINED IN YOUR CONTRACT. THE FOLLOWING IS A SIMPLIFIED SUMMARY OF SOME OF THE RIGHTS DESCRIBED IN YOUR CONTRACT: If (name of licensee) does not provide you with at least three available rental properties meeting the specifications of your contract within five days after you pay the fee charged by (name of licensee), you are entitled to a full refund. To obtain this refund, you must request it from (name of licensee) in writing within 15 days of paying your fee. If you do not obtain a rental through the services of (name of licensee) during the term of your contract, you are entitled to a refund of your fee, minus a service charge, which may not exceed ____ dollars ($____). To obtain this refund, you must provide (name of licensee) with written documentation or a signed statement that you obtained a rental without the assistance of (name of licensee) or that you did not move. This documentation or signed statement must be provided to (name of licensee) with a written request for refund, within 10 days following the expiration of your contract. If (name of licensee) fails to refund your money, as required by your contract, you may sue (name of licensee) in a small claims court. The court may award you the refund you failed to receive, plus additional damages, up to $1,000. If you wish to file a complaint about (name of licensee) or if you cannot collect on a court award, you should contact the Department of Real Estate at 1-877-373-4542 or www.dre.ca.gov. (Amended by Stats. 2021, Ch. 431, Sec. 16. (SB 800) Effective January 1, 2022.)
  18. 10170.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. )

    Verify source ↗

    Real estate licensees must follow commissioner-adopted continuing education requirements to renew their licenses on and after January 1, 1981.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. ) ## 10170. The Legislature has determined that it is in the public interest of consumer protection and consumer service that all real estate licensees licensed under the provisions of this part comply with continuing education requirements adopted by the commissioner pursuant to this article as a prerequisite to the renewal of real estate licenses on and after January 1, 1981. (Added by Stats. 1976, Ch. 1346.)
  19. 10170.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. )

    Verify source ↗

    The commissioner may appoint an advisory committee made up of licensees and real estate education experts.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. ) ## 10170.2. The commissioner may appoint a committee comprised of licensees under this part and persons with expertise in real estate education to advise him with respect to his responsibilities under this article. (Added by Stats. 1976, Ch. 1346.)
  20. 10170.4.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. )

    Verify source ↗

    The commissioner must adopt regulations setting continuing education rules, qualification methods, exemption procedures, attendance controls, testing, and related standards.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. ) ## 10170.4. The commissioner shall adopt regulations pursuant to Section 10080, to prescribe all of the following: (a) A definition of basic requirements for continuing education of 45 clock hours of attendance at approved educational courses, seminars, workshops, or conferences, or their equivalent, achieved during a four-year period preceding license renewal application. (b) A basis and method of qualifying educational programs, the successful completion of which, will satisfy the requirements of this article. (c) A procedure for evaluation of petitions based on a claim of equivalency with the requirements of subdivision (a), and a reasonable standard by which an activity would be judged equivalent, including, but not limited to, instruction in real estate subjects, publication of professional articles or books, or development of real estate educational programs, law or research. (d) A system of control and reporting qualifying attendance. (e) An appropriate form of testing, examination or evaluation by the sponsor of each approved correspondence or homestudy educational program, or equivalent, of the student. (f) A statement of the conditions of exemption from the continuing education requirements established under this article, as well as a method of applying and qualifying for these exemptions, for reasons of health, military service, or other compelling cause. In exercising the authority under this article, the commissioner shall establish standards which will assure reasonable currency of knowledge as a basis for a level of real estate practice which will provide a high level of consumer protection and of competence in achieving the objectives of members of the public who engage the services of licensees. The standards shall permit a variety of alternatives of subject material to licensees taking cognizance of specialized areas of practice, and alternatives in sources of programs considering availability in area and time. The standards shall include, where qualified, generally accredited educational institutions, private vocational schools, correspondence institutions, educational programs, workshops, and seminars of professional societies and organizations, other organized educational programs on technical subjects, or equivalent offerings. (Amended by Stats. 1997, Ch. 232, Sec. 2. Effective January 1, 1998.)
  21. 10170.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. )

    Verify source ↗

    A real estate license cannot be renewed unless the applicant completes the required education within the four years before renewal, subject to Section 10170.8.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. ) ## 10170.5. (a) Except as otherwise provided in Section 10170.8, a real estate license shall not be renewed unless the commissioner finds that the applicant for license renewal has, during the four-year period preceding the renewal application, successfully completed the 45 clock hours of education provided for in Section 10170.4, including all of the following: (1) A three-hour course in ethics, professional conduct, and legal aspects of real estate, which shall include, but not be limited to, relevant legislation, regulations, articles, reports, studies, court decisions, treatises, and information of current interest. (2) A three-hour course in agency relationships and duties in a real estate brokerage practice, including instruction in the disclosures to be made and the confidences to be kept in the various agency relationships between licensees and the parties to real estate transactions. (3) A three-hour course in trust fund accounting and handling. (4) A three-hour course in fair housing that shall include an interactive participatory component, during which the applicant shall roleplay as both a consumer and real estate professional. (5) A three-hour course in risk management that shall include, but need not be limited to, principles, practices, and procedures calculated to avoid errors and omissions in the practice of real estate licensed activities. (6) A two-hour course in implicit bias training that shall include both of the following: (A) A component regarding the impact of implicit bias, explicit bias, and systemic bias on consumers and the historical and social impacts of those biases. (B) Actionable steps licensees can take to recognize and address their own implicit biases. (7) In addition to paragraphs (1) to (6), inclusive, a broker shall complete a three-hour course in the management of real estate offices and supervision of real estate licensed activities that shall include, but need not be limited to, the requirements described in subdivision (a) of Section 10159.7 and Section 10164. (8) Not less than 18 clock hours of courses or programs related to consumer protection, and designated by the commissioner as satisfying this purpose in the commissioner’s approval of the offering of these courses or programs, which shall include, but not be limited to, forms of real estate financing relevant to serving consumers in the marketplace, land use regulation and control, pertinent consumer disclosures, agency relationships, capital formation for real estate development, fair practices in real estate, appraisal and valuation techniques, landlord-tenant relationships, energy conservation, environmental regulation and consideration, taxation as it relates to consumer decisions in real estate transactions, probate and similar disposition of real property, governmental programs such as revenue bond activities, redevelopment, and related programs, business opportunities, mineral, oil, and gas conveyancing, and California law that relates to managing community associations that own, operate, and maintain property within common interest developments, including, but not limited to, management, maintenance, and financial matters addressed in the Davis-Stirling Common Interest Development Act (Part 5 (commencing with Section 4000) of Division 4 of the Civil Code). (9) Other courses and programs that will enable a licensee to achieve a high level of competence in serving the objectives of consumers who may engage the services of licensees to secure the transfer, financing, or similar objectives with respect to real property, including organizational and management techniques, including relevant information to assist a salesperson or broker in understanding how to be effectively supervised by a responsible broker or branch manager, that will significantly contribute to this goal. (b) Except as otherwise provided in Section 10170.8, a real estate license shall not be renewed for a licensee who already has renewed under subdivision (a), unless the commissioner finds that the applicant for license renewal has, during the four-year period preceding the renewal application, successfully completed the 45 clock hours of education provided for in Section 10170.4, including a nine-hour update survey course that covers the subject areas specified in paragraphs (1) to (7), inclusive, of subdivision (a). (c) Any denial of a license pursuant to this section shall be subject to Section 10100. (d) For purposes of this section, “successful completion” of a course described in paragraphs (1) to (7), inclusive, of subdivision (a) means the passing of a final examination. (Amended by Stats. 2025, Ch. 786, Sec. 24. (SB 774) Effective January 1, 2026.)
  22. 10170.6.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. )

    Verify source ↗

    The commissioner may amend or repeal regulations under this article, but licensees keep the right to use qualifying education completed under the old rule for renewal during the current license term.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. ) ## 10170.6. The commissioner may amend or repeal any regulation adopted pursuant to this article in the same manner as provided for adoption of such regulations, except that no amendment or repeal shall operate to deprive any licensee of the right to submit qualifying education completed pursuant to such amended or repealed regulation during his current license term, as a basis for license renewal. (Added by Stats. 1976, Ch. 1346.)
  23. 10170.8.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. )

    Verify source ↗

    A real estate licensee may be exempt from this continuing education article if they submit satisfactory proof to the commissioner that they have been licensed in good standing for 30 continuous years in California and are at least 70 years old.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. ) ## 10170.8. (a) This article shall not apply to a real estate licensee who submits proof satisfactory to the commissioner that the real estate licensee has been a real estate licensee in good standing for 30 continuous years in this state and is 70 years of age or older. (b) A “real estate licensee in good standing” is one who holds an active license that has not been suspended, revoked, or restricted as a result of disciplinary action, who has not surrendered a license while under investigation or while subject to a disciplinary action, or received an order of debarment. (Amended by Stats. 2021, Ch. 431, Sec. 17. (SB 800) Effective January 1, 2022.)
  24. 10171.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. )

    Verify source ↗

    If an applicant submits continuing-education evidence in good faith but it does not meet the adopted standards, the commissioner may extend the license for 90 days. A license issued during or at the end of that grace period still expires four years from the date that would otherwise apply.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. ) ## 10171.2. If an applicant for a license has submitted, in good faith, evidence of completion of continuing education which he had reason to believe would qualify him for license renewal, but the commissioner finds that the evidence submitted does not qualify under standards adopted pursuant to this article, the commissioner may, nonetheless, extend the license for 90 days in order to allow the applicant to submit additional evidence of compliance, which satisfies the requirements of this article. When the license is issued during or at the end of the grace period provided for in this section it shall expire four years from the date otherwise applicable if no grace period had been granted. (Amended by Stats. 1979, Ch. 373.)
  25. 10171.3.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. )

    Verify source ↗

    An applicant for reinstatement must present proof of completing the continuing education required by this article before a revoked real estate license can be reinstated or a restricted license issued, unless the applicant was already required to pass a qualifying examination under Section 10182.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. ) ## 10171.3. On and after January 1, 1981, a real estate license, which has been revoked as the result of disciplinary action by the commissioner, shall not be reinstated, nor shall a restricted real estate license be issued to an applicant in connection with a petition for reinstatement, unless the applicant presents evidence of completion of the continuing education required by this article. This requirement of evidence of continuing education shall not be imposed upon an applicant for reinstatement who has been required under Section 10182 to pass a qualifying examination as a condition to reinstatement. (Amended by Stats. 1984, Ch. 144, Sec. 18.)
  26. 10171.4.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. )

    Verify source ↗

    Some licensees renewing or reinstating after a four-year-old active license must show compliance with this article; otherwise the commissioner may issue a 90-day temporary license.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. ) ## 10171.4. Any licensee who applies for renewal of his or her license under Section 10461, or for reinstatement of his or her license under Section 10161.5 or 10463, shall, if the previous active license issued to him or her was issued four or more years prior to his or her application for renewal or reinstatement, present evidence of compliance with this article. If no such qualifying evidence is presented, the commissioner may issue a temporary license for a period of 90 days. If the applicant presents evidence within 90 days of compliance with this article and is otherwise qualified, the commissioner shall issue a regular license without additional fee. It shall expire four years from the date which would otherwise have been applicable if a temporary license under this section had not been issued. (Amended by Stats. 1991, Ch. 328, Sec. 1.)
  27. 10171.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. )

    Verify source ↗

    A broker licensed only as an officer of a corporate broker cannot renew that license or get a new license in an individual capacity or as a corporate broker officer unless the continuing education requirements of the article have been completed.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2.5. Continuing Education [10170 - 10171.5] ( Article 2.5 added by Stats. 1976, Ch. 1346. ) ## 10171.5. A person who is licensed as a real estate broker only as an officer of a corporate broker pursuant to Section 10158 or 10211 shall not be eligible for the renewal of such license nor for the issuance of a license in an individual capacity or as an officer of a corporate broker licensed pursuant to Section 10158 or 10211, unless and until such person has completed the continuing education requirements of this article. (Added by renumbering Section 10171.1 (as added by Stats. 1980, Ch. 263) by Stats. 1983, Ch. 413, Sec. 4.)
  28. 10175.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    A real estate licensee’s license may be revoked or suspended for grounds stated in this article and other articles of the chapter, following the hearing rules in this part.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10175. Upon grounds provided in this article and the other articles of this chapter, the license of any real estate licensee may be revoked or suspended in accordance with the provisions of this part relating to hearings. (Added by Stats. 1943, Ch. 127.)
  29. 10175.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

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    The commissioner may let a real estate licensee pay a monetary penalty instead of serving all or part of a suspension, if the statutory conditions are met.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10175.2. (a) If the Real Estate Commissioner determines that the public interest and public welfare will be adequately served by permitting a real estate licensee to pay a monetary penalty to the department in lieu of an actual license suspension, the commissioner may, on the petition of the licensee, stay the execution of all or some part of the suspension on the condition that the licensee pay a monetary penalty and the further condition that the licensee incur no other cause for disciplinary action within a period of time specified by the commissioner. (b) The commissioner may exercise the discretion granted under subdivision (a) either with respect to a suspension ordered by a decision after a contested hearing on an accusation against the licensee or by stipulation with the licensee after the filing of an accusation, but prior to the rendering of a decision based upon the accusation. In either case, the terms and conditions of the disciplinary action against the licensee shall be made part of a formal decision of the commissioner. (c) If a licensee fails to pay the monetary penalty in accordance with the terms and conditions of the decision of the commissioner, the commissioner may, without a hearing, order the immediate execution of all or any part of the stayed suspension in which event the licensee shall not be entitled to any repayment nor credit, prorated or otherwise, for money paid to the department under the terms of the decision. (d) The amount of the monetary penalty payable under this section shall not exceed two hundred fifty dollars ($250) for each day of suspension stayed nor a total of ten thousand dollars ($10,000) per decision regardless of the number of days of suspension stayed under the decision. (e) Any monetary penalty received by the department pursuant to this section shall be credited to the Consumer Recovery Account of the Real Estate Fund. (Amended by Stats. 2011, Ch. 712, Sec. 9. (SB 706) Effective January 1, 2012.)
  30. 10176.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

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    The commissioner can investigate real estate licensee conduct and can suspend or revoke a license for listed misconduct.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10176. The commissioner may, upon his or her own motion, and shall, upon the verified complaint in writing of any person, investigate the actions of any person engaged in the business or acting in the capacity of a real estate licensee within this state, and he or she may temporarily suspend or permanently revoke a real estate license at any time where the licensee, while a real estate licensee, in performing or attempting to perform any of the acts within the scope of this chapter has been guilty of any of the following: (a) Making any substantial misrepresentation. (b) Making any false promises of a character likely to influence, persuade, or induce. (c) A continued and flagrant course of misrepresentation or making of false promises through licensees. (d) Acting for more than one party in a transaction without the knowledge or consent of all parties thereto. (e) Commingling with his or her own money or property the money or other property of others which is received and held by him or her. (f) Claiming, demanding, or receiving a fee, compensation, or commission under any exclusive agreement authorizing a licensee to perform any acts set forth in Section 10131 for compensation or commission where the agreement does not contain a definite, specified date of final and complete termination. (g) The claiming or taking by a licensee of any secret or undisclosed amount of compensation, commission, or profit or the failure of a licensee to reveal to the buyer or seller contracting with the licensee the full amount of the licensee’s compensation, commission, or profit under any agreement authorizing the licensee to do any acts for which a license is required under this chapter for compensation or commission prior to or coincident with the signing of an agreement evidencing the meeting of the minds of the contracting parties, regardless of the form of the agreement, whether evidenced by documents in an escrow or by any other or different procedure. (h) The use by a licensee of any provision, which allows the licensee an option to purchase, in an agreement with a buyer or seller that authorizes the licensee to sell, buy, or exchange real estate or a business opportunity for compensation or commission, except when the licensee, prior to or coincident with election to exercise the option to purchase, reveals in writing to the buyer or seller the full amount of the licensee’s profit and obtains the written consent of the buyer or seller approving the amount of the profit. (i) Any other conduct, whether of the same or of a different character than specified in this section, which constitutes fraud or dishonest dealing. (j) Obtaining the signature of a prospective buyer to an agreement which provides that the prospective buyer shall either transact the purchasing, leasing, renting, or exchanging of a business opportunity property through the broker obtaining the signature, or pay a compensation to the broker if the property is purchased, leased, rented, or exchanged without the broker first having obtained the written authorization of the owner of the property concerned to offer the property for sale, lease, exchange, or rent. (k) Failing to disburse funds in accordance with a commitment to make a mortgage loan that is accepted by the applicant when the real estate broker represents to the applicant that the broker is either of the following: (1) The lender. (2) Authorized to issue the commitment on behalf of the lender or lenders in the mortgage loan transaction. (l) Intentionally delaying the closing of a mortgage loan for the sole purpose of increasing interest, costs, fees, or charges payable by the borrower. (m) Violating any section, division, or article of law which provides that a violation of that section, division, or article of law by a licensed person is a violation of that person’s licensing law, if it occurs within the scope of that person’s duties as a licensee. (Amended by Stats. 2018, Ch. 285, Sec. 44. (AB 2884) Effective January 1, 2019.)
  31. 10176.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

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    If the commissioner takes final enforcement or disciplinary action against a licensee in an escrow-services matter, the commissioner must notify two other commissioners and provide related documents; the commissioner must also maintain a public database and link it to specified databases.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10176.1. (a) (1) Whenever the commissioner takes any enforcement or disciplinary action against a licensee, and the enforcement or disciplinary action is related to escrow services provided pursuant to paragraph (4) of subdivision (a) of Section 17006 of the Financial Code, upon the action becoming final the commissioner shall notify the Insurance Commissioner and the Commissioner of Financial Protection and Innovation of the action or actions taken. The purpose of this notification is to alert the departments that enforcement or disciplinary action has been taken, if the licensee seeks or obtains employment with entities regulated by the departments. (2) The commissioner shall provide the Insurance Commissioner and the Commissioner of Financial Protection and Innovation, in addition to the notification of the action taken, with a copy of the written accusation, statement of issues, or order issued or filed in the matter and, at the request of the Insurance Commissioner or the Commissioner of Financial Protection and Innovation, with any underlying factual material relevant to the enforcement or disciplinary action. Any confidential information provided by the commissioner to the Insurance Commissioner or the Commissioner of Financial Protection and Innovation shall not be made public pursuant to this section. Notwithstanding any other law, the disclosure of any underlying factual material to the Insurance Commissioner or the Commissioner of Financial Protection and Innovation shall not operate as a waiver of confidentiality or any privilege that the commissioner may assert. (b) The commissioner shall establish and maintain, on the internet website maintained by the Department of Real Estate, a database of its licensees, including those who have been subject to any enforcement or disciplinary action that triggers the notification requirements of this section. The database shall also contain a direct link to the databases, described in Section 17423.1 of the Financial Code and Section 12414.31 of the Insurance Code and required to be maintained on the internet websites of the Department of Financial Protection and Innovation and the Department of Insurance, respectively, of persons who have been subject to enforcement or disciplinary action for malfeasance or misconduct related to the escrow industry by the Insurance Commissioner and the Commissioner of Financial Protection and Innovation. (c) There shall be no liability on the part of, and no cause of action of any nature shall arise against, the State of California, the Department of Real Estate, the Real Estate Commissioner, any other state agency, or any officer, agent, employee, consultant, or contractor of the state, for the release of any false or unauthorized information pursuant to this section, unless the release of that information was done with knowledge and malice, or for the failure to release any information pursuant to this section. (Amended by Stats. 2021, Ch. 431, Sec. 18. (SB 800) Effective January 1, 2022.)
  32. 10176.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

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    The commissioner must investigate written verified complaints about certain Civil Code violations by real estate licensees, may investigate on their own motion, and may suspend or revoke a license for willful or repeated violations. For Section 1102.6b violations, subdivision (a) is the only civil remedy.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10176.5. (a) The commissioner may, upon his or her own motion, and shall upon receiving a verified complaint in writing from any person, investigate an alleged violation of Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code by any real estate licensee within this state. The commissioner may suspend or revoke a licensee’s license if the licensee acting under the license has willfully or repeatedly violated any of the provisions of Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code. (b) Notwithstanding any other provision of Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, and in lieu of any other civil remedy, subdivision (a) of this section is the only remedy available for violations of Section 1102.6b of the Civil Code by any real estate licensee within this state. (Amended by Stats. 1992, Ch. 772, Sec. 1. Effective January 1, 1993.)
  33. 10177.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

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    The commissioner may discipline real estate licenses, including suspension, revocation, delayed renewal, or denial, for listed misconduct.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10177. The commissioner may suspend or revoke the license of a real estate licensee, delay the renewal of a license of a real estate licensee, or deny the issuance of a license to an applicant, who has done any of the following, or may suspend or revoke the license of a corporation, delay the renewal of a license of a corporation, or deny the issuance of a license to a corporation, if an officer, director, or person owning or controlling 10 percent or more of the corporation’s stock has done any of the following: (a) Procured, or attempted to procure, a real estate license or license renewal, for themself or a salesperson, by fraud, misrepresentation, or deceit, or by making a material misstatement of fact in an application for a real estate license, license renewal, or reinstatement. (b) (1) Entered a plea of guilty or no contest to, or been found guilty of, or been convicted of, a felony, or a crime substantially related to the qualifications, functions, or duties of a real estate licensee, and the time for appeal has elapsed or the judgment of conviction has been affirmed on appeal, irrespective of an order granting probation following that conviction, suspending the imposition of sentence, or of a subsequent order under Section 1203.4 of the Penal Code allowing that licensee to withdraw that licensee’s plea of guilty and to enter a plea of not guilty, or dismissing the accusation or information. (2) Notwithstanding paragraph (1), and with the recognition that sentencing may not occur for months or years following the entry of a guilty plea, the commissioner may suspend the license of a real estate licensee upon the entry by the licensee of a guilty plea to any of the crimes described in paragraph (1). If the guilty plea is withdrawn, the suspension shall be rescinded and the license reinstated to its status prior to the suspension. The department shall notify a person whose license is subject to suspension pursuant to this paragraph of that person’s right to have the issue of the suspension heard in accordance with Section 10100. (c) Knowingly authorized, directed, connived at, or aided in the publication, advertisement, distribution, or circulation of a material false statement or representation concerning their designation or certification of special education, credential, trade organization membership, or business, or concerning a business opportunity or a land or subdivision, as defined in Chapter 1 (commencing with Section 11000) of Part 2, offered for sale. (d) Willfully disregarded or violated this part or Chapter 1 (commencing with Section 11000) of Part 2 or the rules and regulations of the commissioner for the administration and enforcement of this part and Chapter 1 (commencing with Section 11000) of Part 2. (e) Willfully used the term “realtor” or a trade name or insignia of membership in a real estate organization of which the licensee is not a member. (f) Acted or conducted themself in a manner that would have warranted the denial of their application for a real estate license, either had a license denied or had a license issued by another agency of this state, another state, or the federal government revoked, surrendered, or suspended, or received an order of debarment, for acts that, if done by a real estate licensee, would be grounds for the suspension or revocation of a California real estate license, if the action of denial, revocation, surrender, suspension, or debarment by the other agency or entity was taken only after giving the licensee or applicant fair notice of the charges, an opportunity for a hearing, and other due process protections comparable to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340), Chapter 4 (commencing with Section 11370), and Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code), and only upon an express finding of a violation of law by the agency or entity. (g) Demonstrated negligence or incompetence in performing an act for which the officer, director, or person is required to hold a license. (h) As a broker licensee, failed to exercise reasonable supervision over the activities of that licensee’s salespersons, or, as the officer designated by a corporate broker licensee, failed to exercise reasonable supervision and control of the activities of the corporation for which a real estate license is required. (i) Used their employment by a governmental agency in a capacity giving access to records, other than public records, in a manner that violates the confidential nature of the records. (j) Engaged in any other conduct, whether of the same or of a different character than specified in this section, that constitutes fraud or dishonest dealing. (k) Violated any of the terms, conditions, restrictions, and limitations contained in an order granting a restricted license. (l) (1) Solicited or induced the sale, lease, or listing for sale or lease of residential property on the grounds, wholly or in part, of loss of value, increase in crime, or decline of the quality of the schools due to the present or prospective entry into the neighborhood of a person or persons having a characteristic listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those characteristics are defined in Sections 12926 and 12926.1 of, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955 of, and Section 12955.2 of, the Government Code. (2) Notwithstanding paragraph (1), with respect to familial status, paragraph (1) shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in paragraph (1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 4760 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to paragraph (1). (m) Violated the Franchise Investment Law (Division 5 (commencing with Section 31000) of Title 4 of the Corporations Code) or regulations of the Commissioner of Financial Protection and Innovation pertaining thereto. (n) Violated the Corporate Securities Law of 1968 (Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code) or the regulations of the Commissioner of Financial Protection and Innovation pertaining thereto. (o) Failed to disclose to the buyer of real property, in a transaction in which the licensee is an agent for the buyer, the nature and extent of a licensee’s direct or indirect ownership interest in that real property. The direct or indirect ownership interest in the property by a person related to the licensee by blood or marriage, by an entity in which the licensee has an ownership interest, or by any other person with whom the licensee has a special relationship shall be disclosed to the buyer. (p) Violated Article 6 (commencing with Section 10237). (q) Violated or failed to comply with Chapter 2 (commencing with Section 2920) of Title 14 of Part 4 of Division 3 of the Civil Code, relating to mortgages. If a real estate broker that is a corporation has not done any of the foregoing acts, either directly or through its employees, agents, officers, directors, or persons owning or controlling 10 percent or more of the corporation’s stock, the commissioner may not deny the issuance or delay the renewal of a real estate license to, or suspend or revoke the real estate license of, the corporation, provided that any offending officer, director, or stockholder, who has done any of the foregoing acts individually and not on behalf of the corporation, has been completely disassociated from any affiliation or ownership in the corporation. A decision by the commissioner to delay the renewal of a real estate license shall toll the expiration of that license until the results of any pending disciplinary actions against that licensee are final, or until the licensee voluntarily surrenders the licensee’s license, whichever is earlier. (Amended by Stats. 2021, Ch. 431, Sec. 19. (SB 800) Effective January 1, 2022.)
  34. 10177.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

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    The commissioner may suspend a license without a hearing if it was obtained by fraud or similar misconduct, but the respondent can request a hearing and timing rules can void the suspension order.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10177.1. The commissioner may, without a hearing, suspend the license of any person who procured the issuance of the license to himself by fraud, misrepresentation, deceit, or by the making of any material misstatement of fact in his application for such license. The power of the commissioner under this section to order a suspension of a license shall expire 90 days after the date of issuance of said license and the suspension itself shall remain in effect only until the effective date of a decision of the commissioner after a hearing conducted pursuant to Section 10100 and the provisions of this section. A statement of issues as defined in Section 11504 of the Government Code shall be filed and served upon the respondent with the order of suspension. Service by certified or registered mail directed to the respondent’s current address of record on file with the commissioner shall be effective service. The respondent shall have 30 days after service of the order of suspension and statement of issues in which to file with the commissioner a written request for hearing on the statement of issues filed against him. The commissioner shall hold a hearing within 30 days after receipt of the request therefor unless the respondent shall request or agree to a continuance thereof. If a hearing is not commenced within 30 days after receipt of the request for hearing or on the date to which continued with the agreement of respondent, or if the decision of the commissioner is not rendered within 30 days after completion of the hearing, the order of suspension shall be vacated and set aside. A hearing conducted under this section shall in all respects, except as otherwise expressly provided herein, conform to the substantive and procedural provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code applicable to a hearing on a statement of issues. (Amended by Stats. 1972, Ch. 214.)
  35. 10177.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

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    The commissioner must investigate a licensee’s actions when there is a verified written complaint, and may also investigate on the commissioner’s own motion. The commissioner may suspend or revoke a real estate license if the licensee committed certain listed acts in connection with mobilehome-related activity.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10177.2. The commissioner may, upon his or her own motion, and shall, upon the verified complaint in writing of any person, investigate the actions of any licensee, and he or she may suspend or revoke a real estate license at any time where the licensee in performing or attempting to perform any of the acts within the scope of Section 10131.6 has been guilty of any of the following acts: (a) Has used a false or fictitious name, knowingly made any false statement, or knowingly concealed any material fact, in any application for the registration of a mobilehome, or otherwise committed a fraud in that application. (b) Failed to provide for the delivery of a properly endorsed certificate of ownership or certificate of title of a mobilehome from the seller to the buyer thereof. (c) Has knowingly participated in the purchase, sale, or other acquisition or disposal of a stolen mobilehome. (d) Has submitted a check, draft, or money order to the Department of Housing and Community Development for any obligation or fee due the state and it is thereafter dishonored or refused payment upon presentation. (Amended by Stats. 1996, Ch. 812, Sec. 1. Effective January 1, 1997.)
  36. 10177.3.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

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    A licensee must not knowingly or intentionally misrepresent the value of real property, and a licensee giving an opinion of value for residential real property used to originate a mortgage loan must not have a prohibited interest in that property.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10177.3. (a) No licensee shall knowingly or intentionally misrepresent the value of real property. (b) No licensee that offers or provides an opinion of value of residential real property that is used as the basis for the origination of a mortgage loan shall have a prohibited interest in that property, within the meaning of Section 226.42(d) of Title 12 of the Code of Federal Regulations and the accompanying commentary contained in Volume 75 of the Federal Register, page 66554, dated October 28, 2010. (Added by Stats. 2011, Ch. 716, Sec. 2. (SB 6) Effective January 1, 2012.)
  37. 10177.4.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

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    The commissioner may suspend or revoke a real estate licensee’s license for taking referral compensation from specified businesses, after a hearing.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10177.4. (a) Notwithstanding any other provision of law, the commissioner may, after hearing in accordance with this part relating to hearings, suspend or revoke the license of a real estate licensee who claims, demands, or receives a commission, fee, or other consideration, as compensation or inducement, for referral of customers to any escrow agent, structural pest control firm, home protection company, title insurer, controlled escrow company, or underwritten title company. A licensee may not be disciplined under any provision of this part for reporting to the commissioner violations of this section by another licensee, unless the licensee making the report had guilty knowledge of, or committed or participated in, the violation of this section. (b) The term “other consideration” as used in this section does not include any of the following: (1) Bona fide payments for goods or facilities actually furnished by a licensee or for services actually performed by a licensee, provided these payments are reasonably related to the value of the goods, facilities, or services furnished. (2) Furnishing of documents, services, information, advertising, educational materials, or items of a like nature that are customary in the real estate business and that relate to the product or services of the furnisher and that are available on a similar and essentially equal basis to all customers or the agents of the customers of the furnisher. (3) Moderate expenses for food, meals, beverages, and similar items furnished to individual licensees or groups or associations of licensees within a context of customary business, educational, or promotional practices pertaining to the business of the furnisher. (4) Items of a character and magnitude similar to those in paragraphs (2) and (3) that are promotional of the furnisher’s business customary in the real estate business, and available on a similar and essentially equal basis to all customers, or the agents of the customers, of the furnisher. (c) Nothing in this section shall relieve any licensee of the obligation of disclosure otherwise required by this part. (Amended by Stats. 1997, Ch. 718, Sec. 2. Effective January 1, 1998.)
  38. 10177.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    If a real estate licensee is finally found liable in a civil case for fraud, misrepresentation, or deceit in a licensed transaction, the commissioner may suspend or revoke the license after a hearing.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10177.5. When a final judgment is obtained in a civil action against any real estate licensee upon grounds of fraud, misrepresentation, or deceit with reference to any transaction for which a license is required under this division, the commissioner may, after hearing in accordance with the provisions of this part relating to hearings, suspend or revoke the license of such real estate licensee. (Amended by Stats. 1953, Ch. 762.)
  39. 10177.6.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    An agent or financing arranger must give a written disclosure of those roles within 24 hours when arranging financing for a sale, lease, or exchange of real property and also acting as an agent.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10177.6. When an agent undertakes to arrange financing in connection with a sale, lease, or exchange of real property, or when a person or entity arranging financing in connection with the sale, lease, or exchange of real property undertakes to act as an agent with respect to that property, that agent, person, or entity shall, within 24 hours, make a written disclosure of those roles to all parties to the sale, lease, or exchange, and any related loan transaction. For purposes of this section, “agent” has the same meaning as defined in subdivision (a) of Section 2079.13 of the Civil Code. (Added by Stats. 2008, Ch. 286, Sec. 3. Effective January 1, 2009.)
  40. 10178.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    If a real estate salesperson is discharged for a disciplinary violation, the responsible broker must promptly file a certified written statement with the commissioner.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10178. When any real estate salesperson is discharged by his or her responsible broker for a violation of any of the provisions of this article prescribing a ground for disciplinary action, a certified written statement of the facts with reference thereto shall be filed forthwith with the commissioner by the responsible broker, and if the responsible broker fails to notify the commissioner as required by this section, the commissioner may temporarily suspend or permanently revoke the real estate license of the responsible broker, in accordance with the provisions of this part relating to hearings. (Amended by Stats. 2018, Ch. 285, Sec. 46. (AB 2884) Effective January 1, 2019.)
  41. 10179.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    A salesperson’s or broker employee’s violation does not by itself let the broker’s license be revoked or suspended, unless a commissioner’s hearing shows the responsible broker knew about the violation.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10179. No violation of any of the provisions of this part relating to real estate or of Chapter 1 (commencing with Section 11000) of Part 2 of this division by any real estate salesperson or employee of any licensed real estate broker shall cause the revocation or suspension of the license of the responsible broker retaining the salesperson or the broker employing the employee unless it appears upon a hearing by the commissioner that the responsible broker or broker had guilty knowledge of the violation. (Amended by Stats. 2018, Ch. 285, Sec. 47. (AB 2884) Effective January 1, 2019.)
  42. 10180.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    The commissioner may deny, suspend, or revoke a corporation’s real estate license as it applies to an officer or agent acting under that license, without revoking the corporation’s own license.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10180. The commissioner may deny, suspend or revoke the real estate license of a corporation as to any officer or agent acting under its license without revoking the license of the corporation. (Amended by Stats. 1968, Ch. 75.)
  43. 10182.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    If a revoked or suspended real estate license is being reinstated, the commissioner may require the applicant to take and pass a qualifying examination.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10182. As a condition to the reinstatement of a revoked or suspended license, the commissioner may require the applicant to take and pass a qualifying examination. (Added by Stats. 1955, Ch. 1243.)
  44. 10185.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    People who willfully violate, or knowingly participate in violating, this division commit a misdemeanor and may be fined or jailed.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10185. Any person, including officers, directors, agents or employees of corporations, who willfully violates or knowingly participates in the violation of this division shall be guilty of a misdemeanor punishable by a fine not exceeding ten thousand dollars ($10,000), or by imprisonment in the county jail not exceeding six months, or by a fine and imprisonment. (Amended by Stats. 1987, Ch. 587, Sec. 2.)
  45. 10186.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    The commissioner may require certain restricted-license applicants or licensees to pay monitoring costs or restitution, and can require petition-processing costs from holders of restricted or revoked licenses.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10186. (a) Following an administrative proceeding, or in connection with a stipulation, when the commissioner grants the right to a license applicant or a licensee to apply for or to obtain a restricted license or restricted mortgage loan originator license endorsement, the commissioner may, in addition to any other terms and conditions placed upon the restricted licensee, require the restricted licensee to pay the monetary costs associated with monitoring the licensed activities conducted by and pursuant to the restricted license or restricted mortgage loan originator license endorsement. (b) The commissioner may also require, as a condition precedent to the issuance of a restricted license or restricted mortgage loan originator license endorsement, that the licensee pay monetary restitution to any person who sustained damages by reason of the act or acts that led to the discipline imposed by the commissioner. (c) The commissioner shall not renew a license or a mortgage loan originator license endorsement, and may deny an application for the removal of license restrictions or for the reinstatement of an unrestricted license, if the licensee fails to pay all of the costs he or she is ordered to pay pursuant to this section. (d) The commissioner shall not reinstate an unrestricted license or unrestricted mortgage loan originator license endorsement, or remove restrictions from a license or license endorsement, if the petitioner has failed to pay any costs he or she was ordered to pay pursuant to this section. (e) The commissioner may require a holder of a restricted or revoked license, who petitions the commissioner for reinstatement of his or her license pursuant to Section 11522 of the Government Code, to pay the reasonable costs of processing the petition request. (f) All costs recovered under this section shall be considered a reimbursement for costs incurred and shall be deposited in the Real Estate Fund to be available, notwithstanding Section 10451, upon appropriation by the Legislature. (Added by Stats. 2011, Ch. 712, Sec. 10. (SB 706) Effective January 1, 2012.)
  46. 10186.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    A real estate license or endorsement is automatically suspended while the licensee is incarcerated after a felony conviction, and the department must notify the licensee and determine the suspension details.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10186.1. (a) A license or an endorsement of the department shall be suspended automatically during any time that the licensee is incarcerated after conviction of a felony, regardless of whether the conviction has been appealed. The department shall, immediately upon receipt of the certified copy of the record of conviction, determine whether the license or endorsement has been automatically suspended by virtue of the licensee’s incarceration, and if so, the duration of that suspension. The department shall notify the licensee of the suspension and of the right to elect to have the issue of penalty heard as provided in subdivision (d). (b) If after a hearing before an administrative law judge from the Office of Administrative Hearings it is determined that the felony for which the licensee was convicted was substantially related to the qualifications, functions, or duties of a licensee, the commissioner upon receipt of the certified copy of the record of conviction, shall suspend the license or endorsement until the time for appeal has elapsed, if an appeal has not been taken, or until the judgment of conviction has been affirmed on appeal or has otherwise become final, and until further order of the department. (c) Notwithstanding subdivision (b), a conviction of a charge of violating any federal statute or regulation or any statute or regulation of this state regulating dangerous drugs or controlled substances, or a conviction of Section 187, 261, 288, or former Section 262, of the Penal Code, shall be conclusively presumed to be substantially related to the qualifications, functions, or duties of a licensee and a hearing shall not be held on this issue. However, upon its own motion or for good cause shown, the commissioner may decline to impose or may set aside the suspension when it appears to be in the interest of justice to do so, with due regard to maintaining the integrity of, and confidence in, the practice regulated by the department. (d) (1) Discipline may be ordered against a licensee in accordance with the laws and regulations of the department when the time for appeal has elapsed, the judgment of conviction has been affirmed on appeal, or an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under Section 1203.4 of the Penal Code allowing the person to withdraw a plea of guilty and to enter a plea of not guilty, setting aside the verdict of guilty, or dismissing the accusation, complaint, information, or indictment. (2) The issue of penalty shall be heard by an administrative law judge from the Office of Administrative Hearings. The hearing shall not be held until the judgment of conviction has become final or, irrespective of a subsequent order under Section 1203.4 of the Penal Code, an order granting probation has been made suspending the imposition of sentence, except that a licensee may, at the licensee’s option, elect to have the issue of penalty decided before those time periods have elapsed. Where the licensee so elects, the issue of penalty shall be heard in the manner described in subdivision (b) at the hearing to determine whether the conviction was substantially related to the qualifications, functions, or duties of a licensee. If the conviction of a licensee who has made this election is overturned on appeal, any discipline ordered pursuant to this section shall automatically cease. This subdivision does not prohibit the department from pursuing disciplinary action based on any cause other than the overturned conviction. (e) The record of the proceedings resulting in a conviction, including a transcript of the testimony in those proceedings, may be received in evidence. (f) Any other law setting forth a procedure for the suspension or revocation of a license or endorsement issued by the department shall not apply to proceedings conducted pursuant to this section. (Amended by Stats. 2021, Ch. 626, Sec. 3. (AB 1171) Effective January 1, 2022.)
  47. 10186.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    A licensee must report certain criminal charges, convictions, and disciplinary actions to the department in writing within 30 days.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10186.2. (a) (1) A licensee shall report any of the following to the department: (A) The bringing of a criminal complaint, information, or indictment charging a felony against the licensee. (B) The conviction of the licensee, including any verdict of guilty, or plea of guilty or no contest, of any felony or misdemeanor. (C) Any disciplinary action taken by another licensing entity or authority of this state or of another state or an agency of the federal government. (2) The report required by this subdivision shall be made in writing within 30 days of the date of the bringing of the indictment or the charging of a felony, the conviction, or the disciplinary action. (b) Failure to make a report required by this section shall constitute a cause for discipline. (Amended by Stats. 2018, Ch. 285, Sec. 48. (AB 2884) Effective January 1, 2019.)
  48. 10186.9.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    The department must be reviewed by the Legislature’s appropriate policy committees, despite any other law, starting January 1, 2015.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 3. Disciplinary Action [10175 - 10186.9] ( Article 3 added by Stats. 1943, Ch. 127. ) ## 10186.9. Notwithstanding any other provision of law, on and after January 1, 2015, the department shall be subject to review by the appropriate policy committees of the Legislature. (Added by Stats. 2011, Ch. 712, Sec. 13. (SB 706) Effective January 1, 2012.)
  49. 102.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. )

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    On request, the Director of Consumer Affairs may take over the duties of certain initiative-act boards, those boards must pay a proportionate share of departmental administration costs, and the director must assign hearing officers when such a board has adopted the specified Government Code procedure rules.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. ) ## 102. Upon the request of any board regulating, licensing, or controlling any professional or vocational occupation created by an initiative act, the Director of Consumer Affairs may take over the duties of the board under the same conditions and in the same manner as provided in this code for other boards of like character. Such boards shall pay a proportionate cost of the administration of the department on the same basis as is charged other boards included within the department. Upon request from any such board which has adopted the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code as rules of procedure in proceedings before it, the director shall assign hearing officers for such proceedings in accordance with Section 110.5. (Amended by Stats. 1971, Ch. 716.)
  50. 102.3.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. )

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    The director may make an interagency agreement to delegate certain duties and powers to an appropriate entity, which may then create a technical committee with only the powers it received.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. ) ## 102.3. (a) The director may enter into an interagency agreement with an appropriate entity within the Department of Consumer Affairs as provided for in Section 101 to delegate the duties, powers, purposes, responsibilities, and jurisdiction that have been succeeded and vested with the department, of a board, as defined in Section 477, which became inoperative and was repealed in accordance with Chapter 908 of the Statutes of 1994. (b) (1) Where, pursuant to subdivision (a), an interagency agreement is entered into between the director and that entity, the entity receiving the delegation of authority may establish a technical committee to regulate, as directed by the entity, the profession subject to the authority that has been delegated. The entity may delegate to the technical committee only those powers that it received pursuant to the interagency agreement with the director. The technical committee shall have only those powers that have been delegated to it by the entity. (2) Where the entity delegates its authority to adopt, amend, or repeal regulations to the technical committee, all regulations adopted, amended, or repealed by the technical committee shall be subject to the review and approval of the entity. (3) The entity shall not delegate to a technical committee its authority to discipline a licensee who has violated the provisions of the applicable chapter of the Business and Professions Code that is subject to the director’s delegation of authority to the entity. (c) An interagency agreement entered into, pursuant to subdivision (a), shall continue until such time as the licensing program administered by the technical committee has undergone a review by the Assembly Committee on Business and Professions and the Senate Committee on Business, Professions and Economic Development to evaluate and determine whether the licensing program has demonstrated a public need for its continued existence. Thereafter, at the director’s discretion, the interagency agreement may be renewed. (Amended by Stats. 2019, Ch. 351, Sec. 10. (AB 496) Effective January 1, 2020.)
  51. 10200.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

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    Real estate license fees must be paid before the licenses are issued and when the application is filed; otherwise provided, licenses expire at midnight on the last day of the period for which they were issued.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10200. All real estate license fees shall be payable in advance of issuing the licenses and at the time of filing the application. Unless otherwise provided, all licenses expire at midnight of the last day of the period for which issued. (Amended by Stats. 1956, Ch. 4.)
  52. 10201.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    A license holder who missed the renewal deadline may still renew within two years, if otherwise qualified and after paying a late renewal fee.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10201. The holder of a license who fails to renew it prior to the expiration of the period for which it was issued and who has otherwise qualified for such license, may renew it within two years from such expiration upon proper application and the payment of a late renewal fee in an amount equal to one and one-half times the regular renewal fee in effect at the time the license is reinstated. (Amended by Stats. 1993, Ch. 416, Sec. 4. Effective January 1, 1994.)
  53. 10201.6.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

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    A person who passes a real estate license exam must file the required license application and fee within one year.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10201.6. Any person who has qualified in an examination for a real estate license shall file the required application and fee for the license within one year thereafter. (Added by Stats. 1965, Ch. 1489.)
  54. 10202.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    The definitions in this article apply only within this article.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10202. The definitions contained in this article are solely for the purposes of this article. (Added by Stats. 1943, Ch. 127.)
  55. 10207.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    Real estate examination and license fees are set by this article, and fees paid under this chapter are not refundable.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10207. The amount of the real estate fees prescribed for an examination or for a license under this chapter is that fixed by the following provisions of this article. No part of any fee paid in accordance with the provisions of this chapter is refundable. It is deemed earned by the department upon its receipt. (Amended by Stats. 1975, Ch. 622.)
  56. 10208.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

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    The section sets the broker license examination and reexamination fee at $150, subject to a $195 maximum, and says an application lapses if the applicant does not appear for the examination within two years after filing.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10208.5. The real estate broker license examination fee is one hundred fifty dollars ($150), not to exceed one hundred ninety-five dollars ($195). The real estate broker license reexamination fee is one hundred fifty dollars ($150), not to exceed one hundred ninety-five dollars ($195). If an applicant fails to appear for the examination within two years from the date of filing their application and fee for the examination, their application shall thereupon lapse and no further proceedings thereon shall be taken. This section shall remain in effect unless it is superseded pursuant to subdivision (a) of Section 10226.5. (Amended by Stats. 2024, Ch. 41, Sec. 5. (SB 164) Effective June 29, 2024. Note: Fees are subject to reduction as prescribed in Section 10226.5.)
  57. 10209.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

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    The commissioner must set course-approval fees by regulation, keep them high enough to cover administration costs, and notify applicants of the decision within 60 days after a completed application is received.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10209. (a) The commissioner shall, by regulation, establish fees for applications for approval of equivalent courses of study as defined in Section 10153.5 in an amount sufficient to cover the cost of administration. The fee for an application for approval of each course given by a private vocational school, including any branch school that gives the same course, shall be five hundred dollars ($500), not to exceed six hundred fifty dollars ($650). (b) The commissioner shall notify every applicant of their decision on the application no later than 60 days after receipt by the commissioner of a completed application. The application shall be on a form to be supplied by the commissioner. (Amended by Stats. 2024, Ch. 41, Sec. 6. (SB 164) Effective June 29, 2024.)
  58. 10209.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

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    The commissioner must set fees by regulation for certain education-course approvals and equivalency petition evaluations.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10209.2. The commissioner shall, by regulation, establish fees for applications for approval of educational courses, seminars, workshops, conference, or their equivalent, or for the evaluation of petition based on a claim of equivalency, as authorized by Section 10170.4 in an amount sufficient to cover the cost of processing such applications or petitions. (Amended by Stats. 1984, Ch. 66, Sec. 10.5.)
  59. 10209.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    The fee for a restricted broker license is the same as the fee for an unrestricted license, under Section 10210.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10209.5. The fee for a restricted broker license shall be the same as that for an unrestricted license as provided in Section 10210. (Amended (as amended by Stats. 1993, Ch. 416, Sec. 6) by Stats. 1996, Ch. 657, Sec. 1. Effective January 1, 1997. Note: Fee is subject to reduction as prescribed in Sections 10226 and 10226.5.)
  60. 10210.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    A real estate broker license fee is set at $450, with a maximum of $585, and an original applicant must pay it when filing the application.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10210. (a) The fee for a real estate broker license shall be four hundred fifty dollars ($450), not to exceed five hundred eighty-five dollars ($585). In the case of an original applicant, the fee is payable upon filing the real estate broker license application. (b) If an applicant fails to pass the real estate broker license examination within two years from the date of filing their broker license application, their broker license application shall lapse and no further proceedings thereon shall be taken. (c) This section shall remain in effect unless it is superseded pursuant to Section 10226 or subdivision (a) of Section 10226.5, whichever is applicable. (Amended by Stats. 2024, Ch. 41, Sec. 7. (SB 164) Effective June 29, 2024. Note: Fee is subject to reduction as prescribed in Sections 10226 and 10226.5.)
  61. 10211.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    If a corporation is the licensee, its license lets one designated officer act as a real estate broker without any extra fee.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10211. If the licensee is a corporation, the license issued to it entitles one officer thereof, on behalf of the corporation, to engage in the business of real estate broker without the payment of any further fee, such officer to be designated in the application of the corporation for a license. For each officer other than the officer so designated, through whom it engages in the business of real estate broker, the appropriate original or renewal fee is to be paid in addition to the fee paid by the corporation. (Amended by Stats. 1956, Ch. 4.)
  62. 10213.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    This section sets the real estate salesperson license examination and reexamination fees at $100 each, with a maximum of $130, and says an application lapses if the applicant does not appear for the exam within two years of filing.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10213.5. The real estate salesperson license examination fee shall be one hundred dollars ($100), not to exceed one hundred thirty dollars ($130). The real estate salesperson license reexamination fee shall be one hundred dollars ($100), not to exceed one hundred thirty dollars ($130). If an applicant fails to appear for the examination within two years from the date of filing their application and fee for the examination, their application shall thereupon lapse and no further proceedings thereon shall be taken. This section shall remain in effect unless it is superseded pursuant to subdivision (a) of Section 10226.5. (Amended by Stats. 2024, Ch. 41, Sec. 8. (SB 164) Effective June 29, 2024. Note: Fees are subject to reduction as prescribed in Section 10226.5.)
  63. 10213.6.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    An applicant who misses a scheduled examination may ask in writing for a new date, and must include the required fee with that request.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10213.6. If an applicant for any examination fails to take the examination on the date scheduled, they may make application in writing to the principal office of the department in Sacramento for a new date. A fee of forty-five dollars ($45), not to exceed fifty-nine dollars ($59), shall accompany the written request for applying for the first new examination date in the case of a broker applicant, and a fee of forty dollars ($40), not to exceed fifty-two dollars ($52), shall accompany the written request for the first new examination date in the case of a salesperson applicant. A fee of forty-five dollars ($45), not to exceed fifty-nine dollars ($59), shall accompany the written request for all subsequent new examination dates in the case of broker applicants. A fee of forty dollars ($40), not to exceed fifty-two dollars ($52), shall accompany the written request for all subsequent new examination dates for salesperson applicants. This section shall remain in effect unless it is superseded pursuant to subdivision (a) of Section 10226.5. (Amended by Stats. 2024, Ch. 41, Sec. 9. (SB 164) Effective June 29, 2024. Note: Fees are subject to reduction as prescribed in Section 10226.5.)
  64. 10214.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    A restricted salesperson license fee must match the fee for an unrestricted license, subject to any reductions allowed by other sections.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10214.5. The fee for a restricted salesperson license shall be the same as that for an unrestricted license as provided in Section 10215. (Amended (as amended by Stats. 1993, Ch. 416, Sec. 10) by Stats. 1996, Ch. 657, Sec. 3. Effective January 1, 1997. Note: Fee is subject to reduction as prescribed in Sections 10226 and 10226.5.)
  65. 10215.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    A real estate salesperson license fee is set at $350, capped at $455, and an original applicant must pay it when filing the application.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10215. (a) The fee for a real estate salesperson license shall be three hundred fifty dollars ($350), not to exceed four hundred fifty-five dollars ($455). In the case of an original applicant, the fee is payable upon filing the real estate salesperson license application. (b) If an applicant fails to pass the real estate salesperson license examination within two years from the date of filing their salesperson license application, their salesperson license application shall lapse and no further proceedings thereon shall be taken. (c) This section shall remain in effect unless it is superseded pursuant to Section 10226 or subdivision (a) of Section 10226.5, whichever is applicable. (Amended by Stats. 2024, Ch. 41, Sec. 10. (SB 164) Effective June 29, 2024. Note: Fee is subject to reduction as prescribed in Sections 10226 and 10226.5.)
  66. 10222.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    For examinations required by an order under the Administrative Procedure Act, the fee must match the fee for a salesperson or broker license examination, as appropriate.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10222. For any examination required under any order issued pursuant to the provisions of the Administrative Procedure Act, the fee shall be the same as for a salesperson or broker license examination, as appropriate. (Amended (as amended by Stats. 1996, Ch. 342, Sec. 15) by Stats. 1997, Ch. 232, Sec. 14. Effective January 1, 1998.)
  67. 10225.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    A permit application for selling real property securities secured by liens on property outside California must include the filing fee, travel costs, and inspection/appraisal expenses.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10225. An application for a permit to sell real property securities secured by liens on real property situated outside the State of California shall be accompanied by the filing fee together with an amount equivalent to twenty-five cents ($0.25) a mile for each mile going and returning, or where public transportation is available the actual round trip fare pertaining thereto, estimated by the commissioner to be traveled from the office of the Department of Real Estate where the application is filed to the location of the property, and the amount estimated to be necessary to cover the expense of the inspection and appraisal of the property, not to exceed seventy-five dollars ($75) a day for each day actually spent in the inspection and appraisal of the property or properties. (Amended by Stats. 1985, Ch. 1355, Sec. 1.)
  68. 10226.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

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    The commissioner may lower certain real estate fees by regulation, must hold at least one hearing each year, and the department must report financial information and give 15 days’ notice before the hearing.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10226. (a) The commissioner may periodically by regulation prescribe fees lower than the maximum fees provided in Sections 10209.5, 10210, 10214.5, 10215, and 10250.3 whenever they determine those lower fees are sufficient to offset the costs and expenses incurred in the administration of Part 1 (commencing with Section 10000) of this division. The commissioner shall hold at least one regulation hearing each calendar year, to determine if lower fees should be prescribed. At this hearing, the department shall report on the financial status of the department, including the revenues, expenditures, and reserves as of the end of the previous fiscal year. The department shall post a hearing notice 15 days in advance of the hearing that includes the required information about the financial status of the department. (b) If, as of June 30 of any fiscal year, the balance of funds in the Real Estate Fund exceeds an amount equal to 150 percent of the department’s authorized budget for the following year, then within 30 days thereafter the commissioner shall, notwithstanding the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), issue regulations reducing real estate license and subdivision fees so that as of June 30 of the next fiscal year the balance of funds in the Real Estate Fund shall not exceed an amount equal to 150 percent of the department’s authorized budget for that year. (c) If the commissioner fails to reduce these fees within the timeframe specified in subdivision (b), then fees shall automatically be reduced to the levels as indicated in subdivision (b) of Section 10226.5. That reduction shall be effective no later than September 1 of the fiscal year wherein the commissioner is obliged to issue regulations pursuant to subdivision (b). (Amended by Stats. 2024, Ch. 41, Sec. 11. (SB 164) Effective June 29, 2024.)
  69. 10226.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    If a Budget Act transfer or loan moves money from the Real Estate Fund to the General Fund, specified real estate fees must be reduced 30 days later to listed maximum amounts.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10226.5. (a) If at any time funds are transferred or loaned from the Real Estate Fund to the General Fund by the Budget Act, then 30 days from and after the date of the transfer or loan, fees shall be reduced as indicated in subdivision (b), irrespective of any provisions of the Budget Act precluding that reduction. (b) Fees shall be reduced pursuant to paragraph (a) to the following maximum amounts: (1) Real estate broker examination or reexamination: Fifty dollars ($50). (2) First reschedule of broker examination: Fifteen dollars ($15); subsequent reschedules: Twenty-five dollars ($25). (3) Real estate broker license, original or renewal: One hundred sixty-five dollars ($165). (4) Real estate salesperson examination or reexamination: Twenty-five dollars ($25). (5) First reschedule of salesperson examination: Ten dollars ($10); subsequent reschedules: Twenty-five dollars ($25). (6) Real estate salesperson license, original or renewal: One hundred twenty dollars ($120). (7) Real estate salesperson license without all educational requirements: One hundred forty-five dollars ($145). (8) A notice of intention without a completed questionnaire: One hundred fifty dollars ($150). (9) An original public report for subdivision interests described in Section 11004.5: One thousand six hundred dollars ($1,600) plus ten dollars ($10) for each subdivision interest to be offered. (10) An original public report for subdivision interests other than those described in Section 11004.5: Five hundred dollars ($500) plus ten dollars ($10) for each interest to be offered. (11) A conditional public report for subdivision interests described in Section 11004.5: Five hundred dollars ($500). (12) A conditional public report for subdivision interests other than those described in Section 11004.5: Five hundred dollars ($500). (13) A preliminary public report for subdivision interests described in Section 11004.5: Five hundred dollars ($500). (14) A preliminary public report for subdivision interests other than those described in Section 11004.5: Five hundred dollars ($500). (15) A renewal public report for subdivision interests described in Section 11004.5: Five hundred dollars ($500). (16) A renewal public report for subdivision interests other than those described in Section 11004.5: Five hundred dollars ($500). (17) An amended public report for subdivision interests described in Section 11004.5: Three hundred dollars ($300) plus ten dollars ($10) for each subdivision interest to be offered under the amended public report for which a fee has not previously been paid. (18) An amended public report to offer subdivision interests other than those described in Section 11004.5: Three hundred dollars ($300) plus ten dollars ($10) for each subdivision interest to be offered under the amended public report for which a fee has not previously been paid. (19) An application for an original, renewal, or amended registration as required by Section 10249: One hundred dollars ($100). (20) The filing fee for an application for a permit to be issued pursuant to Article 8.5 (commencing with Section 10250) for each subdivision or phase of the subdivision in which interests are to be offered for sale or lease shall be as follows: (A) One thousand six hundred dollars ($1,600) plus ten dollars ($10) for each subdivision interest to be offered for an original permit application. (B) Five hundred dollars ($500) plus ten dollars ($10) for each subdivision interest to be offered that was not permitted to be offered under the permit to be renewed for a renewal permit application. (C) Three hundred dollars ($300) plus ten dollars ($10) for each subdivision interest to be offered under the amended permit for which a fee has not previously been paid for an amended permit application. (D) Five hundred dollars ($500) for a conditional permit application. (Amended by Stats. 2004, Ch. 676, Sec. 7. Effective January 1, 2005.)
  70. 10227.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. )

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    The department must hold at least one meeting before submitting a regulatory fee increase proposal for initial publication, and it must send certain organizations information 30 days before any scheduled meeting.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 4. Fees [10200 - 10227] ( Article 4 added by Stats. 1943, Ch. 127. ) ## 10227. (a) Beginning January 1, 2025, before submitting a regulatory fee increase proposal to the Office of Administrative Law for initial publication, the department shall conduct at least one meeting to which statewide membership organizations that represent any of the following are invited to attend: (1) One hundred fifty thousand or more persons or entities licensed by the department under the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4). (2) Less than 150,000 persons or entities licensed by the department under the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4). (3) Persons or entities that pay fees to the department pursuant to the Subdivided Lands Law (Chapter 1 (commencing with Section 11000) of Part 2 of Division 4) and the Vacation Ownership and Time-share Act of 2004 (Chapter 2 (commencing with Section 11210) of Part 2 of Division 4). (b) The department shall provide the statewide membership organizations identified in subdivision (a) information related to the proposed fee increase 30 days in advance of any meeting scheduled pursuant to subdivision (a). (c) The department may, at its discretion, promulgate regulations to implement this section. (Added by Stats. 2024, Ch. 41, Sec. 12. (SB 164) Effective June 29, 2024.)
  71. 10230.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

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    This section excludes certain broker-related loan negotiations and promissory note sales from the article, but the exclusion does not apply if the broker has a direct or indirect monetary interest as a party.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10230. (a) The provisions of this article do not apply to the negotiation of a loan by or on behalf of a real estate broker in connection with a qualifying sale or exchange of real property in which the broker acted as the agent of one or more of the parties to the sale or exchange, nor to the sale or exchange by or on behalf of the broker of a promissory note created for the purpose of financing a qualifying real property sale or exchange transaction in which the broker acted as the agent of one or more of the parties to the qualifying real property sale or exchange regardless of the time of the sale or exchange of the promissory note. For the purposes of this subdivision, a “qualifying” sale or exchange of real property is one that is subject to the requirements of Article 3 (commencing with Section 2956) of Chapter 2 of Title 14 of Part 4 of Division 3 of the Civil Code. (b) Subdivision (a) shall not apply to the negotiation of loans nor to sales or exchanges of promissory notes in connection with the financing of a real property sale or exchange transaction in which the broker had a direct or indirect monetary interest as a party. (Amended by Stats. 1998, Ch. 641, Sec. 2. Effective January 1, 1999.)
  72. 10231.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

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    A covered person may not accept purchase or loan funds, or cause them to be deposited in escrow, except in the stated permit-based and transaction-specific situations.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10231. Except as authorized by permit issued pursuant to the applicable provisions of the Corporate Securities Law of 1968 (Section 25000 et seq. of the Corporations Code), no person in doing any of the acts set forth in subdivision (d) of Section 10131, subdivision (e) of Section 10131, and Section 10131.1 shall accept any purchase or loan funds or other consideration from a prospective purchaser or lender, or directly or indirectly cause such funds or other consideration to be deposited in an escrow except as to a specific loan or a specific real property sales contract or promissory note secured directly or collaterally by a lien on real property on which loan, contract or note the person has a bona fide authorization to negotiate or to sell or which has been bought and completely paid for by the licensee, or has an unconditional written contract which obligates him to purchase a specific real property sales contract or promissory note secured directly or collaterally by a deed of trust. (Amended by Stats. 1998, Ch. 641, Sec. 3. Effective January 1, 1999.)
  73. 10231.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

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    Certain persons may not hold related funds for more than 25 days unless a written agreement with the purchaser or lender allows it.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10231.1. No person in doing any of the acts set forth in subdivision (d) of Section 10131, subdivision (e) of Section 10131, and Section 10131.1 shall, as agent or principal, retain funds payable according to the terms of a promissory note or real property sales contract secured directly or collaterally by a lien on real property, for a period longer than 25 days, except pursuant to a written agreement with the purchaser or lender. (Amended by Stats. 1998, Ch. 641, Sec. 4. Effective January 1, 1999.)
  74. 10231.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

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    Real estate brokers who solicit funds for certain purchase or loan transactions must submit required documents to the Department of Real Estate before making the solicitation, give the completed statement to the person solicited at least 24 hours before key funding or signing events, and keep a copy for four years.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10231.2. (a) A real estate broker who, through express or implied representations that the broker or any salesperson acting on the broker’s behalf is engaging in acts for which a real estate license is required by subdivision (d) or (e) of Section 10131, proposes to solicit and accept funds, or to cause the solicitation and acceptance of funds, to be applied to a purchase or loan transaction in which the broker will directly or indirectly obtain the use or benefit of the funds other than for commissions, fees, and costs and expenses as provided by law for the broker’s services as an agent, shall, prior to the making of any representation, solicitation, or presentation of the statement described in subdivision (b), submit the following to the Department of Real Estate: (1) A true copy of the statement described in subdivision (b) complete except for the signature of the prospective lender or purchaser. (2) A statement that the submittal is being made to the department pursuant to Section 10231.2. (b) A broker making a solicitation pursuant to subdivision (a) shall deliver, or cause to be delivered, to the person solicited, the applicable completed statement described in Section 10232.5 not less than 24 hours before the earlier of the acceptance of any funds from that person by or on behalf of the broker or the execution of any instrument obligating the person to make the loan or purchase. The statement shall be signed by the prospective lender or purchaser and by the real estate broker or, on the broker’s behalf, by a real estate salesperson licensed to the broker. When so executed, an exact copy of the executed statement shall be given to the prospective lender or purchaser, and the broker shall retain a true copy of the executed statement for a period of four years. (c) None of the provisions of subdivision (a) or (b) shall apply in the case of an offering of a security authorized pursuant to applicable provisions of the Corporate Securities Law of 1968 (Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code). (d) In the case of a solicitation by a corporate real estate broker, the provisions of subdivisions (a) and (b) shall apply if the funds solicited are intended for the direct or indirect use or benefit of an officer or director of the corporation or of a person with a 10-percent or greater ownership interest in the corporation. (Amended by Stats. 2021, Ch. 431, Sec. 20. (SB 800) Effective January 1, 2022.)
  75. 10232.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

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    A real estate broker that meets the section’s activity thresholds must notify the department in writing within 30 days after making that determination.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10232. (a) Except as otherwise expressly provided, Sections 10232.2, 10232.25, 10233, and 10236.6 are applicable to every real estate broker who intends or reasonably expects in a successive 12 months to do any of the following: (1) Negotiate a combination of 10 or more of the following transactions pursuant to subdivision (d) or (e) of Section 10131 or Section 10131.1 in an aggregate amount of more than one million dollars ($1,000,000): (A) Loans secured directly or collaterally by liens on real property or on business opportunities as agent for another or others. (B) Sales or exchanges of real property sales contracts or promissory notes secured directly or collaterally by liens on real property or on business opportunities as agent for another or others. (C) Sales or exchanges of real property sales contracts or promissory notes secured directly or collaterally by liens on real property as the owner of those notes or contracts. (2) Make collections of payments in an aggregate amount of two hundred fifty thousand dollars ($250,000) or more on behalf of owners of promissory notes secured directly or collaterally by liens on real property, owners of real property sales contracts, or both. (3) Make collections of payments in an aggregate amount of two hundred fifty thousand dollars ($250,000) or more on behalf of obligors of promissory notes secured directly or collaterally by liens on real property, lenders of real property sales contracts, or both. Persons under common management, direction, or control in conducting the activities enumerated above shall be considered as one person for the purpose of applying the above criteria. (b) The negotiation of a combination of two or more new loans and sales or exchanges of existing promissory notes and real property sales contracts of an aggregate amount of more than two hundred fifty thousand dollars ($250,000) in any three successive months or a combination of five or more new loans and sales or exchanges of existing promissory notes and real property sales contracts of an aggregate amount of more than five hundred thousand dollars ($500,000) in any successive six months shall create a rebuttable presumption that the broker intends to negotiate new loans and sales and exchanges of an aggregate amount that will meet the criteria of subdivision (a). (c) In determining the applicability of Sections 10232.2, 10232.25, 10233, and 10236.6, loans or sales negotiated by a broker, or for which a broker collects payments or provides other servicing for the owner of the note or contract, shall not be counted in determining whether the broker meets the criteria of subdivisions (a) and (b) if any of the following apply: (1) The lender or purchaser is any of the following: (A) The Federal National Mortgage Association, the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Housing Administration, and the United States Department of Veterans Affairs. (B) A bank or subsidiary thereof, bank holding company or subsidiary thereof, trust company, savings bank or savings and loan association or subsidiary thereof, savings bank or savings association holding company or subsidiary thereof, credit union, industrial bank or industrial loan company, finance lender, or insurer doing business under the authority of, and in accordance with, the laws of this state, any other state, or the United States relating to banks, trust companies, savings banks or savings associations, credit unions, industrial banks or industrial loan companies, commercial finance lenders, or insurers, as evidenced by a license, certificate, or charter issued by the United States or a state, district, territory, or commonwealth of the United States. (C) Trustees of a pension, profit-sharing, or welfare fund, if the pension, profit-sharing, or welfare fund has a net worth of not less than fifteen million dollars ($15,000,000). (D) A corporation with outstanding securities registered under Section 12 of the Securities Exchange Act of 1934 or a wholly owned subsidiary of that corporation. (E) A syndication or other combination of any of the entities specified in subparagraph (A), (B), (C), or (D) that is organized to purchase the promissory note. (F) The California Housing Finance Agency or a local housing finance agency organized under the Health and Safety Code. (G) A licensed residential mortgage lender or servicer acting under the authority of that license. (H) An institutional investor that issues mortgage-backed securities, as specified in paragraph (11) of subdivision (i) of Section 50003 of the Financial Code. (I) A licensed real estate broker selling all or part of the loan, the note, or the contract to a lender or purchaser specified in subparagraphs (A) to (H), inclusive. (2) The loan or sale is negotiated, or the loan or contract is being serviced for the owner, under authority of a permit issued pursuant to applicable provisions of the Corporate Securities Law of 1968 (Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code). (3) The transaction is subject to the requirements of Article 3 (commencing with Section 2956) of Chapter 2 of Title 14 of Part 4 of Division 3 of the Civil Code. (d) If two or more real estate brokers who are not under common management, direction, or control cooperate in the negotiation of a loan or the sale or exchange of a promissory note or real property sales contract and share in the compensation for their services, the dollar amount of the transaction shall be allocated according to the ratio that the compensation received by each broker bears to the total compensation received by all brokers for their services in negotiating the loan or sale or exchange. (e) A real estate broker who meets any of the criteria of subdivision (a) or (b) shall notify the department in writing within 30 days after that determination is made. (Amended by Stats. 2006, Ch. 760, Sec. 11. Effective January 1, 2007.)
  76. 10232.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

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    A real estate broker may submit a proposed advertisement to the Department of Real Estate for approval before using it, and the submission must include a fee.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10232.1. (a) A real estate broker, prior to the use of any proposed advertisement in connection with the conduct of activities described in subdivisions (d) and (e) of Section 10131 and Section 10131.1, may submit a true copy thereof to the Department of Real Estate for approval. The submission shall be accompanied by a fee of one hundred dollars ($100), not to exceed one hundred thirty dollars ($130). The commissioner may by regulation prescribe the amount of the fee. If disapproval of the proposed advertisement is not communicated by the department to the broker within 15 calendar days after receipt of the copy of the proposed advertisement by the department, the proposed advertisement shall be deemed approved, but the department shall not be precluded from disapproving a later publication or other use of the same or similar advertising. The commissioner shall adopt regulations pertaining to the submittal and clearance of that advertising and establishing criteria for approval to ensure that the public will be protected against false or misleading representations. Except as provided in subdivision (b), “advertisement” includes dissemination in any newspaper, circular, form letter, brochure or similar publication, display, sign, radio broadcast or telecast, which concerns (1) the use, terms, rates, conditions, or the amount of any loan or sale referred to in subdivisions (d) and (e) of Section 10131 or Section 10131.1 or (2) the security, solvency, or stability of any person carrying on the activities described in those sections. (b) “Advertisement” does not include a letter or brochure that meets both of the following criteria: (1) It is restricted in distribution to other real estate brokers and to persons for whom the broker has previously acted as an agent in arranging a loan secured by real property or in the purchase, sale, or exchange of a deed of trust or real property sales contract. (2) It is restricted in content to the identification and a description of the terms of loans, mortgages, deeds of trust, real property sales contracts, or any combination thereof offered for funding or purchase through the broker as agent. (c) Subdivision (a) is not applicable to advertising that is used exclusively in connection with an offering authorized by permit issued pursuant to the applicable provisions of the Corporate Securities Law of 1968 (Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code). (d) All advertising approvals shall be for a period of five years after the date of approval. The approval period applies to all advertising, including that which was previously submitted on a mandatory basis. (Amended by Stats. 2024, Ch. 41, Sec. 13. (SB 164) Effective June 29, 2024.)
  77. 10232.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

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    Certain real estate brokers must file annual reports with the Department of Real Estate, unless they qualify for the cash-receipts exception; late filing can lead to an examination, charges, and possible license suspension or renewal denial.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10232.2. A real estate broker who meets the criteria of subdivision (a) of Section 10232 shall annually file the reports referred to in subdivisions (a) and (c) with the Department of Real Estate within 90 days after the end of the broker’s fiscal year or within any additional time as the Real Estate Commissioner may allow for filing for good cause: (a) The report of a review by a licensed California independent public accountant of trust fund financial statements, conducted in accordance with generally accepted accounting practices, which shall include within its scope the following information for the fiscal year relative to the business activities of the broker described in subdivisions (d) and (e) of Section 10131: (1) The receipt and disposition of all funds of others to be applied to the making of loans and the purchasing of promissory notes or real property sales contracts. (2) The receipt and disposition of all funds of others in connection with the servicing by the broker of the accounts of owners of promissory notes and real property sales contracts including installment payments and loan or contract payoffs by obligors. (3) A statement as of the end of the fiscal year, that shall include an itemized trust fund accounting of the broker and confirmation that the trust funds are on deposit in an account or accounts maintained by the broker in a financial institution. (b) A broker who meets the criteria of Section 10232, but who, in carrying on the activities described in subdivisions (d) and (e) of Section 10131, has not during a fiscal year, accepted for the benefit of a person to whom the broker is a trustee, any payment or remittance in a form convertible to cash by the broker, need not comply with the provisions of subdivision (a). In lieu thereof, the broker shall submit to the commissioner within 30 days after the end of the broker’s fiscal year or, within any additional time as the commissioner may allow for a filing for good cause, a notarized statement under penalty of perjury on a form provided by the department attesting to the fact that the broker did not receive any trust funds in cash or convertible to cash during the fiscal year. (c) A report of all of the following aspects of the business conducted by the broker while engaging in activities described in subdivisions (d) and (e) of Section 10131 and in Section 10131.1: (1) Number and aggregate dollar amount of loan, trust deed sales, and real property sales contract transactions negotiated. (2) Number and aggregate dollar amount of promissory notes and contracts serviced by the broker or an affiliate of the broker. (3) Number and aggregate dollar amount of late payment charges, prepayment penalties, and other fees or charges collected and retained by the broker under servicing agreements with beneficiaries and obligees. (4) Default and foreclosure experience in connection with promissory notes and contracts subject to servicing agreements between the broker and beneficiaries or obligees. (5) Commissions received by the broker for services performed as agent in negotiating loans and sales of promissory notes and real property sales contracts. (6) Aggregate costs and expenses as referred to in Section 10241 paid by borrowers to the broker. (d) The commissioner shall adopt regulations prescribing the form and content of the report referred to in subdivision (c) with appropriate categories to afford a better understanding of the business conducted by the broker. (e) If the broker fails to file either of the reports required under subdivisions (a) and (c) within the time permitted herein, the commissioner may cause an examination and report to be made and may charge the broker one and one-half times the cost of making the examination and report. In determining the hourly cost incurred by the commissioner for conducting an examination and preparing the report, the commissioner may use the estimated average hourly cost for all department audit staff performing audits of real estate brokers. If a broker fails to pay the above amount within 60 days of the mailing of a notice of billing, the commissioner may suspend the broker’s license or deny renewal of the broker’s license. The suspension or denial shall remain in effect until the above amount is paid or the broker’s right to renew a license has expired. The commissioner may maintain an action for the recovery of the above amount in any court of competent jurisdiction. (f) The reports referred to in subdivisions (a) and (c) are exempted from any requirement of public disclosure by subdivision (b) of Section 7929.000 of the Government Code. The commissioner shall annually make and file as a public record, a composite of the annual reports and any comments thereon that are deemed to be in the public interest. (Amended by Stats. 2022, Ch. 28, Sec. 14. (SB 1380) Effective January 1, 2023.)
  78. 10232.25.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

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    Certain real estate brokers must file quarterly trust funds status reports with the commissioner, and some brokers may instead file a statement if they received no cash or cash-convertible trust funds during the quarter.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10232.25. (a) A real estate broker who meets the criteria of subdivision (a) of Section 10232 shall, within 30 days after the end of each of the first three fiscal quarters of the broker’s fiscal year, or within any additional time as the Real Estate Commissioner may allow for good cause, file with the commissioner a trust funds status report as of the last day of the fiscal quarter which shall include the following: (1) A representation that the form and content of the trust account records of the broker are in compliance with the regulations of the commissioner. (2) A representation that the broker’s trust fund bank account is maintained in compliance with the regulations of the commissioner. (3) A statement of the broker’s aggregate accountability for trust funds. (4) A report of trust funds in the broker’s custody consisting of the trust account bank statements as of the bank’s accounting date immediately preceding the end of the fiscal quarter and a schedule of withdrawals and deposits adjusting the account to its true balance as of the end of the fiscal quarter. (5) A statement explaining any difference in amount between the broker’s total accountability under paragraph (3) above and the adjusted trust account bank balance under paragraph (4) above. (b) Each report made pursuant to subdivision (a) shall include the following: (1) The name, address, and position or capacity of the person who prepared the report. (2) A declaration under penalty of perjury by the broker that the information and representations in the report are true, complete, and correct to the best of the broker’s knowledge and belief. The declaration in a report submitted on behalf of a corporate broker shall be signed by a broker-officer through whom the corporation is licensed as a real estate broker and by the chief executive officer of the corporation if he or she is not the signing broker-officer. (c) If a broker fails to file a report required under subdivision (a) within the time permitted, the commissioner may cause an examination and report to be made and may charge the broker one and one-half times the cost of making the examination and report. In determining the hourly cost incurred by the commissioner for conducting an examination and preparing the report, the commissioner may use the estimated average hourly cost for all department audit staff performing audits of real estate brokers. If a broker fails to pay the above amount within 60 days of the mailing of a notice of billing, the commissioner may suspend the broker’s license or deny renewal of the broker’s license. The suspension or denial shall remain in effect until the above amount is paid or the broker’s right to renew a license has expired. The commissioner may maintain an action for the recovery of the above amount in any court of competent jurisdiction. (d) A broker who meets the criteria of Section 10232, but who, in carrying on the activities described in subdivisions (d) and (e) of Section 10131, did not during a fiscal quarter, accept for the benefit of a person to whom the broker is trustee, any payment or remittance in a form convertible to cash by the broker, need not comply with the provisions of subdivision (a). In lieu thereof, the broker shall submit to the commissioner within 30 days after the end of the fiscal quarter or within any additional time as the commissioner may allow for good cause, a statement under penalty of perjury on a form provided by the department attesting to the fact that the broker did not receive any trust funds in cash or convertible to cash during the fiscal quarter. (e) Any real estate broker who engages in any of the activities specified in subdivision (d) or (e) of Section 10131, but who is not required by this section to file trust funds status reports with the commissioner and who is not exempt therefrom under subdivision (d), shall complete trust funds status reports in accordance with either (1) the requirements of subdivisions (a) and (b) applicable to trust funds status reports filed with the commissioner, or (2) the requirements established by the lender or note owner, if the lender or note owner does all of the following: (i) requires monthly reconciliations of trust account balances; (ii) requires annual, CPA-audited financial statements; and (iii) maintains a contractual right to audit the trust accounts held by the broker on behalf of the lender or note owner. The broker shall retain all trust funds status reports prepared under this subdivision on file at the broker’s offices, where they shall be subject to inspection by representatives of the commissioner upon 24 hours’ notice. (Amended by Stats. 2000, Ch. 636, Sec. 3. Effective January 1, 2001.)
  79. 10232.3.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

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    Rules limit how much a real-estate-secured note or interest can be sold for, require broker disclosures and records, and set extra safeguards for certain construction or rehab loans.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10232.3. (a) Any transaction that involves the sale of or offer to sell a note secured directly by an interest in one or more parcels of real property or the sale of an undivided interest in a note secured directly by one or more parcels of real property shall adhere to all of the following: (1) Except as provided in paragraph (2), the aggregate principal amount of the note or interest sold, together with the unpaid principal amount of any encumbrances upon the real property senior thereto, shall not exceed the following percentages of the current market value of each parcel of the real property, as determined in writing by the broker or appraiser pursuant to Section 10232.6, plus the amount for which the payment of principal and interest in excess of the percentage of current market value is insured for the benefit of the holders of the note or interest by an insurer admitted to do business in this state by the Insurance Commissioner: (A) Single-family residence, owner occupied ........................ 80% (B) Single-family residence, not owner occupied ........................ 75% (C) Commercial properties and income-producing properties not described in (B) or (E) ........................ 65% (D) Single-family residentially zoned lot or parcel that has installed offsite improvements including drainage, curbs, gutters, sidewalks, paved roads, and utilities as mandated by the political subdivision having jurisdiction over the lot or parcel ........................ 65% (E) Land that produces income from crops, timber, or minerals ........................ 60% (F) Land that is not income producing but has been zoned for (and if required, approved for subdivision as) commercial or residential development ........................ 50% (G) Other real property ........................ 35% (2) The percentage amounts specified in paragraph (1) may be exceeded when and to the extent that the broker determines that the encumbrance of the property in excess of these percentages is reasonable and prudent considering all relevant factors pertaining to the real property. However, in no event shall the aggregate principal amount of the note or interest sold, together with the unpaid principal amount of any encumbrances upon the property senior thereto, exceed 80 percent of the current fair market value of improved real property or 50 percent of the current fair market value of unimproved real property, except in the case of a single-family zoned lot or parcel as defined in paragraph (1), which shall not exceed 65 percent of the current fair market value of that lot or parcel, plus the amount insured as specified in paragraph (1). A written statement shall be prepared by the broker that sets forth the material considerations and facts that the broker relies upon for his or her determination, which shall be retained as a part of the broker’s record of the transaction. Either a copy of the statement or the information contained therein shall be included in the disclosures required pursuant to Section 10232.5. (3) A copy of the appraisal or the broker’s evaluation, for each parcel of real property securing the note or interest, shall be delivered to the purchaser. The broker shall advise the purchaser of his or her right to receive a copy. For purposes of this paragraph, “appraisal” means a written estimate of value based upon the assembling, analyzing, and reconciling of facts and value indicators for the real property in question. A broker shall not purport to make an appraisal unless he or she is qualified on the basis of special training, preparation, or experience. (4) For construction or rehabilitation loans, where the amount withheld for construction or rehabilitation at the start of the project exceeds one hundred thousand dollars ($100,000), the term “current market value” may be deemed to be the value of the completed project if all of the following safeguards are met: (A) An independent neutral third-party escrow holder is used for all deposits and disbursements relating to the construction or rehabilitation of the secured property. (B) The loan is fully funded, with the entire loan amount to be deposited in escrow prior to the recording of the deed or deeds of trust. (C) A comprehensive, detailed draw schedule is used to ensure proper and timely disbursements to allow for completion of the project. (D) The disbursement draws from the escrow account are based on verification from an independent qualified person who certifies that the work completed to date meets the related codes and standards and that the draws were made in accordance with the construction contract and draw schedule. For purposes of this subparagraph, “independent qualified person” means a person who is not an employee, agent, or affiliate of the broker and who is a licensed architect, general contractor, structural engineer, or active local government building inspector acting in his or her official capacity. (E) An appraisal is completed by a qualified and licensed appraiser in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). (F) The documentation includes a detailed description of the actions that may be taken in the event of a failure to complete the project, whether that failure is due to default, insufficiency of funds, or other causes. (G) The entire amount of the loan does not exceed two million five hundred thousand dollars ($2,500,000). (5) For construction or rehabilitation loans, where the amount withheld for construction or rehabilitation at the start of the project is one hundred thousand dollars ($100,000) or less, the term “current market value” may be deemed to be the value of the completed project if all of the following safeguards are met: (A) The loan is fully funded, with the entire loan amount to be deposited in escrow prior to recording of the deed or deeds of trust. (B) A comprehensive, detailed draw schedule is used to ensure proper and timely disbursements to allow for completion of the project. (C) An appraisal is completed by a qualified and licensed appraiser in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). (D) The documentation includes a detailed description of the actions that may be taken in the event of a failure to complete the project, whether that failure is due to default, insufficiency of funds, or other causes. (E) The entire amount of the loan does not exceed two million five hundred thousand dollars ($2,500,000). (6) If a note or an interest will be secured by more than one parcel of real property, for the purpose of determining the maximum amount of the note or interest, each security property shall be assigned a portion of the note or interest that shall not exceed the percentage of current market value determined by, and in accordance with, the provisions of paragraphs (1) and (2). (b) The note or interest shall not be sold, unless the purchaser meets one or both of the qualifications of income or net worth set forth below and signs a statement, which shall be retained by the broker for four years, conforming to the following: “Transaction Identifier: Name of Purchaser: Date: Check either one of the following, if true: ( )My investment in the transaction does not exceed 10% of my net worth, exclusive of home, furnishings, and automobiles. ( )My investment in the transaction does not exceed 10% of my adjusted gross income for federal income tax purposes for my last tax year or, in the alternative, as estimated for the current year. Signature” (Amended by Stats. 2018, Ch. 285, Sec. 49. (AB 2884) Effective January 1, 2019.)
  80. 10232.4.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

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    A real estate broker soliciting or negotiating certain real-estate-backed loans or sales contracts must give the person a completed disclosure statement, have it signed, give an exact copy, keep a copy for three years, and in some custody-of-funds situations deliver the statement and get written consent before disbursing funds.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10232.4. (a) In making a solicitation to a particular person and in negotiating with that person to make a loan secured by real property or to purchase a real property sales contract or a note secured by a deed of trust, a real estate broker shall deliver to the person solicited the applicable completed statement described in Section 10232.5 as early as practicable before that person becomes obligated to make the loan or purchase and, except as provided in subdivision (c), before the receipt by or on behalf of the broker of any funds from that person. The statement shall be signed by the prospective lender or purchaser and by the real estate broker, or by a real estate salesperson licensed to the broker, on the broker’s behalf. When so executed, an exact copy shall be given to the prospective lender or purchaser, and the broker shall retain a true copy of the executed statement for a period of three years. (b) The requirement of delivery of a disclosure statement pursuant to subdivision (a) shall not apply with respect to the following persons: (1) The prospective purchaser of a security offered under authority of a permit issued pursuant to applicable provisions of the Corporate Securities Law of 1968 (Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code) that require that each prospective purchaser of a security be given a prospectus or other form of disclosure statement approved by the department issuing the permit. (2) The seller of real property who agrees to take back a promissory note of the purchaser as a method of financing all or a part of the purchase of the property. (3) The prospective purchaser of a security offered pursuant to and in accordance with a regulation duly adopted by the Commissioner of Financial Protection and Innovation granting an exemption from qualification under the Corporate Securities Law of 1968 for the offering if one of the conditions of the exemption is that each prospective purchaser of the security be given a disclosure statement prescribed by the regulation before the prospective purchaser becomes obligated to purchase the security. (4) A prospective lender or purchaser, if that lender or purchaser is any of the following: (A) The United States or any state, district, territory, or commonwealth thereof, or any city, county, city and county, public district, public authority, public corporation, public entity, or political subdivision of a state, district, territory, or commonwealth of the United States, or any agency or corporate or other instrumentality of any one or more of the foregoing, including the Federal National Mortgage Association, the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Housing Administration, and the Veteran’s Administration. (B) Any bank or subsidiary thereof, bank holding company or subsidiary thereof, trust company, savings bank or savings and loan association or subsidiary thereof, savings bank or savings association holding company or subsidiary thereof, credit union, industrial bank or industrial loan company, finance lender, or insurance company doing business under the authority of, and in accordance with, the laws of this state, any other state, or of the United States relating to banks, trust companies, savings banks or savings associations, credit unions, industrial banks or industrial loan companies, commercial finance lenders, or insurance companies, as evidenced by a license, certificate, or charter issued by the United States or any state, district, territory, or commonwealth of the United States. (C) Trustees of pension, profitsharing, or welfare fund, if the pension, profitsharing, or welfare fund has a net worth of not less than fifteen million dollars ($15,000,000). (D) Any corporation with outstanding securities registered under Section 12 of the Securities Exchange Act of 1934 or any wholly owned subsidiary of that corporation. (E) Any syndication or other combination of any of the entities specified in subparagraph (A), (B), (C), or (D) which is organized to purchase the promissory note. (F) A licensed real estate broker engaging in the business of selling all or part of the loan, note, or contract to a lender or purchaser to whom no disclosure is required pursuant to this subdivision. (G) A licensed residential mortgage lender or servicer when acting under the authority of that license. (c) When the broker has custody of funds of a prospective lender or purchaser which were received and are being maintained with the express permission of the owner and in accordance with law, and the broker retains the funds in an escrow depository or a trust fund account pending receipt of the owner’s express written instructions to disburse the funds for a loan or purchase, the broker shall cause the disclosure statement to be delivered to the owner and shall obtain the owner’s written consent to the proposed disbursement before making the disbursement. Unless the broker has a written agreement with the owner as provided in Section 10231.1, the broker shall transmit to the owner not later than 25 days after receipt, all funds then in the broker’s custody for which the owner has not given written instructions authorizing disbursement. (Amended by Stats. 2022, Ch. 452, Sec. 9. (SB 1498) Effective January 1, 2023.)
  81. 10232.45.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

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    Brokers covered by this section must make reasonable efforts to ensure sales of certain notes meet suitability-related standards, keep supporting records for four years, and if using the safe harbor, obtain a commissioner-approved investor questionnaire within the stated timing.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10232.45. (a) Any broker subject to the provisions of Section 10232.3 or Article 6 (commencing with Section 10237) shall make reasonable efforts to ensure all of the following with respect to the offer or sale of notes or interest in notes to be secured by a lien on real property or a business opportunity: (1) All persons to whom notes or interests are sold can be reasonably assumed to have the capacity to understand the fundamental aspects of the investment, by reason of their educational, business, or financial experience. (2) All persons to whom notes or interests are sold can bear the economic risk of the investment. (3) The investment in the notes or interests is suitable and appropriate for the purchaser, given the purchaser’s investment objectives, portfolio structure, and financial situation. (b) A broker shall make this determination on the basis of information he or she obtains from the purchaser. Relevant information for this purpose includes, at least, the age, investment objective, investment experience, income, net worth, financial situation, and other investments of the prospective purchaser, as well as any other pertinent factors the commissioner shall establish through regulation. (c) A broker shall maintain records of the information used to determine that an investment is suitable and appropriate for each purchaser and shall retain these records for at least four years. (d) A broker that complies with all of the following shall be deemed to have complied with subdivision (a): (1) Obtains from each person to whom notes and deeds of trust or interests therein are offered or sold, at least two business days and not more than one year prior to completing each sale, a completed investor questionnaire in a form approved by the commissioner. After obtaining an initial questionnaire, any subsequent questionnaire from the same person need only reflect any updates from the immediately preceding questionnaire obtained by the broker. (2) Uses the responses in that questionnaire as an aid in complying with subdivision (a). (e) Nothing in this section shall be construed to require a broker to utilize an investor questionnaire to ensure compliance with subdivision (a). Reliance of a broker on an investor questionnaire in a form approved by the commissioner shall not prohibit that broker from utilizing additional information to ensure compliance with subdivision (a). (Amended by Stats. 2015, Ch. 263, Sec. 2. (SB 647) Effective January 1, 2016.)
  82. 10232.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

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    Real estate brokers must include specified disclosures in statements to prospective lenders or purchasers in certain loan and sale transactions.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10232.5. (a) If the real estate broker is performing acts described in subdivision (d) of Section 10131 in negotiating a loan to be secured by a lien on real property or on a business opportunity, the statement required to be given to the prospective lender shall include, but shall not necessarily be limited to, the following information: (1) Address or other means of identification of the real property that is to be the security for the borrower’s obligation. (2) Estimated fair market value of the securing property as determined by an appraisal, a copy of which shall be provided to the lender. However, a lender may waive the requirement of an independent appraisal in writing, on a case-by-case basis, in which case, the real estate broker shall provide the broker’s written estimated fair market value of the securing property, which shall include the objective data upon which the broker’s estimate is based. (3) Age, size, type of construction, and a description of improvements to the property if contained in the appraisal or as represented to the broker by the prospective borrower. (4) Identity, occupation, employment, income, and credit data about the prospective borrower or borrowers as represented to the broker by the prospective borrower or borrowers. (5) Terms of the promissory note to be given to the lender. (6) Pertinent information concerning all encumbrances which constitute liens against the securing property and, to the extent of actual knowledge of the broker, pertinent information about other loans that the borrower expects or anticipates will result in a lien being recorded against the property securing the promissory note to be created in favor of the prospective lender. As used in this paragraph, actual knowledge with respect to any anticipated or expected loan, means knowledge gained by the broker through arranging that other loan or receipt of written notification of that other loan. In this regard, the broker shall also provide to the prospective lender the option to apply to purchase a title insurance policy or an endorsement to an existing title insurance policy covering the securing property, and a copy of a written loan application, and a credit report. (7) Provisions for servicing of the loan, if any, including disposition of the late charge and prepayment penalty fees paid by the borrower. (8) Detailed information concerning any proposed arrangement under which the prospective lender along with persons not otherwise associated with him or her will be joint beneficiaries or obligees. (9) If the solicitation is subject to the provisions of Section 10231.2, a detailed statement of the intended use and disposition of the funds being solicited including an explanation of the nature and extent of the benefits to be directly or indirectly derived by the broker. (10) If the broker is subject to the provisions of Section 10232 or Article 6 (commencing with Section 10237), a statement that the broker has a responsibility to make reasonable efforts to determine that the loan is a suitable and appropriate investment for the lender, based on information provided by the lender regarding the lender’s financial situation and investment objectives. (b) If the real estate broker is performing acts described in subdivision (e) of Section 10131 or in Section 10131.1 in negotiating the sale of a real property sales contract or promissory note secured directly or collaterally by a lien on real property, the statement required to be given to the prospective purchaser by Section 10232.4 shall include, but shall not necessarily be limited to, the following information: (1) Address or other means of identification of the real property that is the security for the trustor’s or vendee’s obligation. (2) Estimated fair market value of the real property as determined by an appraisal, a copy of which shall be provided to the prospective purchaser. However, a purchaser may waive the requirement of an independent appraisal in writing, on a case-by-case basis, in which case, the real estate broker shall provide the broker’s written estimated fair market value of the securing property, which shall include the objective data upon which the broker’s estimate is based. (3) Age, size, type of construction, and a description of improvements to the real property if known by the broker. (4) Information available to the broker relative to the ability of the trustor or vendee to meet his or her contractual obligations under the note or contract including the trustor’s or vendee’s payment history under the note or contract. (5) Terms of the contract or note including the principal balance owing. (6) Provisions for servicing of the note or contract, if any, including disposition of late charge, prepayment penalty or other fees or charges paid by the trustor or vendee. (7) Detailed information concerning any proposed arrangement under which the prospective purchaser along with persons not otherwise associated with him or her will be joint beneficiaries or obligees. In this regard, the broker shall also provide to the prospective purchaser the option to apply to purchase a title insurance policy or an endorsement to an existing title insurance policy covering the real property and, if available from the seller of the note or contract or from the original lender, a copy of a written loan application, and a credit report. (8) A statement as to whether the dealer is acting as a principal or as an agent in the transaction with the prospective purchaser. (9) If the broker is subject to the provisions of Section 10232 or Article 6 (commencing with Section 10237), a statement that the broker has a responsibility to make reasonable efforts to determine that the purchase is a suitable and appropriate investment for the purchaser, based on information provided by the purchaser regarding the purchaser’s financial situation and investment objectives. (Amended by Stats. 2012, Ch. 669, Sec. 3. (SB 978) Effective January 1, 2013.)
  83. 10232.6.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

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    A broker who uses a licensed appraiser and gives the appraisal to the lender and purchaser can satisfy the disclosure rule and does not need a separate fair market value estimate in loan transactions.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10232.6. (a) A real estate broker, acting within the course and scope of his or her license, who arranges for or engages the services of an appraiser licensed or certified by the Office of Real Estate Appraisers for the applicable transaction, and delivers the resulting appraisal to the prospective lender and prospective purchaser as required by Section 10232.5, has met the broker’s obligation of full and complete disclosure solely pursuant to paragraph (2) of subdivision (a) of Section 10232.5 and paragraph (2) of subdivision (b) of Section 10232.5, and is not required to provide a separate estimate of fair market value under Section 10232.5. (b) This section shall not apply in instances where the licensed or certified appraiser is an employee of the broker. However, the duty of disclosure shall not be deemed met where the broker knew or should have known that the referral was negligently made or that the fair market value provided by the appraiser was inaccurate. (c) Nothing in this section is intended to relieve the broker of any obligation or requirement to disclose what he or she knows about the value of the property. (d) This section shall apply only to loan transactions and shall have no effect on a real estate broker’s duties of disclosure in purchase or sales transactions. (Amended by Stats. 1996, Ch. 439, Sec. 1. Effective September 12, 1996.)
  84. 10233.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

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    A real estate licensee servicing certain promissory notes or real property sales contracts must have written authorization, give required accountings, and send written notices of specified events within 15 days.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10233. A real estate licensee who undertakes to service a promissory note secured directly or collaterally by a lien on real property or a real property sales contract shall comply with each of the following requirements: (a) The licensee shall have a written authorization from the borrower, the lender, or the owner of the note or contract, that is included within the terms of a written servicing agreement that satisfies the requirements of paragraphs (1), (2), (4), and (5) of subdivision (k) of Section 10238. (b) The licensee shall provide the lender or the owner of the note or contract with at least the following accountings: (1) An accounting of the unpaid principal balance at the end of each year. (2) An accounting of collections and disbursements received and made during each year. (3) Each accounting required under this subdivision shall identify the person who holds the original note or contract and the deed of trust evidencing and securing the debt or obligation for which the accounting has been provided. (c) The licensee shall provide to the lender or the owner of the note or contract written notification within 15 days of the occurrence of any of the following events: (1) The recording of a notice of default. (2) The recording of a notice of trustee’s sale. (3) The receipt of any payment constituting an amount greater than or equal to five monthly payments, together with a request for partial or total reconveyance of the real property, in which case the notice shall also indicate any further transfer or delivery instructions. (4) The delinquency of any installment or other obligation under the note or contract for over 30 days. (Amended by Stats. 2005, Ch. 153, Sec. 2. Effective January 1, 2006.)
  85. 10233.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

    Verify source ↗

    If a real estate broker makes a qualifying payment from funds other than the obligor’s funds while servicing a sales contract or secured promissory note, the broker must send written notice to the mortgagee, beneficiary, or owner within 10 days.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10233.1. If a real estate broker in servicing a real property sales contract or a promissory note secured directly or collaterally by a lien on real property for the mortgagee, beneficiary, or owner of the note or contract, causes funds other than funds received from the obligor of the note or contract to be applied toward a payment to protect the security of the note or contract being serviced, including the payment of debt service on an obligation secured by the same real property having priority over the mortgage or deed of trust securing the promissory note that the broker is servicing, the broker shall, not later than 10 days after making any such payment, give written notice to the mortgagee, beneficiary, or owner of the date and amount of payment, the name of the person to whom payment was made, the source of funds, and the reason for making the payment. (Added by Stats. 1982, Ch. 881, Sec. 5.)
  86. 10233.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

    Verify source ↗

    If a broker arranges or sells a promissory note and later services it, delivery, transfer, and perfection are treated as complete when the recorded deed-of-trust documents and note-payment/endorsement conditions are met.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10233.2. For the purposes of Division 3 (commencing with Section 3101) and Division 9 (commencing with Section 9101) of the Commercial Code, when a broker, acting within the meaning of subdivision (d) or (e) of Section 10131 or Section 10131.1, has arranged a loan or sold a promissory note or any interest therein, and thereafter undertakes to service the promissory note on behalf of the lender or purchaser in accordance with Section 10233, delivery, transfer, and perfection shall be deemed complete even if the broker retains possession of the note or collateral instruments and documents, provided that the deed of trust or an assignment of the deed of trust or collateral documents in favor of the lender or purchaser is recorded in the office of the county recorder in the county in which the security property is located, and the note is made payable to the lender or is endorsed or assigned to the purchaser. (Added by Stats. 1992, Ch. 158, Sec. 1. Effective January 1, 1993.)
  87. 10234.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

    Verify source ↗

    Real estate licensees must record certain trust deeds and assignments with the county recorder, generally before funds are disbursed or within stated deadlines.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10234. (a) Except as provided in subdivision (d), every real estate licensee who negotiates a loan secured by a trust deed on real property shall cause the trust deed to be recorded, naming as beneficiary the lender or his or her nominee (who shall not be the licensee or the licensee’s nominee), with the county recorder of the county in which the real property is located prior to the time that any funds are disbursed, except when the lender has given written authorization for prior release. (b) If funds are released on the lender’s written authorization as described in subdivision (a), the trust deed shall be recorded, or delivered to the lender or beneficiary with a written recommendation that it be recorded forthwith, within 10 days following release. (c) Every real estate licensee who sells, exchanges, or negotiates the sale or exchange of a real property sales contract or a promissory note secured by a trust deed on real property shall cause a proper assignment of the real property sales contract or trust deed to be executed and shall cause the assignment to be recorded, naming as assignee the purchaser or his or her nominee (who shall not be the licensee or the licensee’s nominee), with the county recorder of the county in which the real property is located within 10 working days after the licensee or seller receives any funds from the buyer or after close of escrow; or shall deliver the real property sales contract or trust deed to the purchaser with a written recommendation that the assignment thereof be recorded forthwith. (d) A trust deed may be recorded in the name of the real estate broker negotiating the loan if all of the following apply: (1) the lender or purchaser is any person or entity set forth in paragraph (1) of subdivision (c) of Section 10232, (2) the trust deed is recorded with the county recorder of the county in which the real property is located, and (3) the real property securing the loan as described in the trust deed is not a dwelling as defined in Section 10240.2 or unimproved real property. (Amended by Stats. 1998, Ch. 26, Sec. 1. Effective January 1, 1999.)
  88. 10234.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

    Verify source ↗

    A broker placing a loan must deliver, or make sure delivery of, conformed copies of any deed of trust to both the investor or lender and the borrower within a reasonable time after recording.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10234.5. In addition to the requirements of Section 10234, in the placing of any loan, a broker shall deliver or cause to be delivered conformed copies of any deed of trust to both the investor or lender and the borrower within a reasonable amount of time from the date of recording. (Amended by Stats. 1998, Ch. 641, Sec. 9. Effective January 1, 1999.)
  89. 10235.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

    Verify source ↗

    A real estate licensee must not knowingly advertise or distribute false, misleading, or deceptive statements about loan or real property sales contract rates, terms, or conditions.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10235. No real estate licensee shall knowingly advertise, print, display, publish, distribute, telecast or broadcast, or cause or permit to be advertised, printed, displayed, published, distributed, televised or broadcast, in any manner any statement or representation with regard to the rates, terms, or conditions for making, purchasing or negotiating loans or real property sales contracts which is false misleading or deceptive. Indicating or otherwise implying any specific yield or return on any note other than the interest rate specified in said note shall be prima facie evidence that such advertisement is misleading or deceptive unless the advertisement sets forth the actual interest rate specified in the note and the discount from the outstanding principal balance at which it is being offered for sale. (Added by Stats. 1961, Ch. 886.)
  90. 10235.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

    Verify source ↗

    A real estate licensee or mortgage loan originator must not place a loan advertisement primarily disseminated in California unless it discloses the required Department of Real Estate number and unique identifier.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10235.5. (a) A real estate licensee or mortgage loan originator shall not place an advertisement disseminated primarily in this state for a loan unless there is disclosed within the printed text of that advertisement, or the oral text in the case of a radio or television advertisement, the Department of Real Estate number and the unique identifier assigned to that licensee by the Nationwide Multistate Licensing System and Registry under which the loan would be made or arranged. (b) “Mortgage loan originator,” “unique identifier,” and “Nationwide Multistate Licensing System and Registry” have the meanings set forth in Section 10166.01. (Amended by Stats. 2022, Ch. 511, Sec. 68. (SB 1495) Effective January 1, 2023.)
  91. 10236.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

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    The commissioner may, in discretion, honor requests for interpretive opinions. Acts or omissions done in good faith in line with a written interpretive opinion of the commissioner or the Attorney General are not subject to liability under this article, even if the opinion is later changed, rescinded, or found invalid.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10236. The commissioner in his or her discretion may honor requests from interested persons for interpretive opinions with respect to any provision of this article or with respect to any regulation for implementation of provisions of this article. No provision of this article imposing any liability applies in the case of an act done or omitted in good faith in conformity with a written interpretive opinion of the commissioner or an opinion of the Attorney General, notwithstanding that the opinion may later be amended or rescinded or be determined by judicial or other authority to be invalid for any reason. (Amended by Stats. 1998, Ch. 485, Sec. 19. Effective January 1, 1999.)
  92. 10236.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

    Verify source ↗

    A real estate licensee must not advertise gifts, premiums, or other things of value to a prospective purchaser or lender as an inducement for a loan or for buying certain promissory notes or real property sales contracts.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10236.1. No real estate licensee shall advertise to give or to offer to give to a prospective purchaser or lender any premium, gift or any other object of value as an inducement for making a loan, or purchasing a promissory note secured directly or collaterally by a lien on real property or a real property sales contract. (Amended by Stats. 1998, Ch. 126, Sec. 1. Effective January 1, 1999.)
  93. 10236.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

    Verify source ↗

    A qualifying real estate broker must notify the Department of Real Estate in writing within 30 days, or a daily penalty applies.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10236.2. (a) A real estate broker who satisfies the criteria of subdivision (a) or (b) of Section 10232 and who fails to notify the Department of Real Estate, in writing, of that fact within 30 days thereafter as required by subdivision (e) of Section 10232 shall be assessed a penalty of fifty dollars ($50) per day for each additional day written notification has not been received up to and including the 30th day after the first day of the assessment penalty. On and after the 31st day the penalty is one hundred dollars ($100) per day, not to exceed a total penalty of ten thousand dollars ($10,000), regardless of the number of days, until the department receives the written notification. (b) The commissioner may suspend or revoke the license of any real estate broker who fails to pay a penalty imposed under this section. In addition, the commissioner may bring an action in an appropriate court of this state to collect payment of the penalty. (c) All penalties paid or collected under this section shall be deposited into the Consumer Recovery Account of the Real Estate Fund. (Amended by Stats. 2021, Ch. 431, Sec. 24. (SB 800) Effective January 1, 2022.)
  94. 10236.4.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

    Verify source ↗

    Licensed real estate brokers and mortgage loan originators must include identifying information in certain advertisements and required disclosures.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10236.4. (a) In compliance with Section 10235.5, every licensed real estate broker shall also display their license number on all advertisements where there is a solicitation for borrowers or potential investors. Every mortgage loan originator, as defined in Section 10166.01, shall also display the unique identifier assigned to that individual by the Nationwide Multistate Licensing System and Registry on all advertisements where there is a solicitation for borrowers. (b) The disclosures required by Sections 10232.4 and 10240 shall include the licensee’s license number, the mortgage loan originator’s unique identifier, if applicable, and the department’s license information telephone number. (c) “Mortgage loan originator,” “unique identifier,” and “Nationwide Multistate Licensing System and Registry” have the meanings set forth in Section 10166.01. (Amended by Stats. 2022, Ch. 511, Sec. 69. (SB 1495) Effective January 1, 2023.)
  95. 10236.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

    Verify source ↗

    A real estate broker must notify the department when the broker stops servicing or arranging loans covered by Section 10232.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10236.5. A real estate broker shall notify the department when he or she is no longer servicing or arranging loans subject to the reporting requirements of Section 10232. If a broker has already made reports required by this article within the year, he or she shall continue reports for that year, but shall notify the department prior to the expiration of that year that he or she will no longer be servicing or arranging loans for which reports are required. The department’s records, including those which may be disclosed by calling the license information telephone number of the department, may then be appropriately updated. (Added by Stats. 1997, Ch. 540, Sec. 5. Effective January 1, 1998.)
  96. 10236.6.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

    Verify source ↗

    The commissioner may audit brokers covered by this article, and can review certain nontrust accounts only in limited circumstances.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10236.6. (a) The commissioner, in his or her discretion, may audit any broker who conducts transactions subject to the provisions of this article. The audit shall be conducted after reasonable notice to the broker and shall include an examination of both of the following: (1) Trust accounts under the control of the broker or in any manner affiliated with the broker. (2) Nontrust accounts under the control of the broker or in any manner affiliated with the broker to which funds from trust accounts have been deposited other than for the payment of commissions, fees, costs, or expenses due to or incurred by the broker. (b) The authority to audit these nontrust accounts shall be limited to instances where either an annual review or audit conducted by an independent certified public accountant or a departmental audit reveals unauthorized transfers of money to those accounts. (Added by Stats. 1998, Ch. 641, Sec. 11. Effective January 1, 1999.)
  97. 10236.7.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. )

    Verify source ↗

    A real estate broker must record the legal basis for certain transactions in the transaction file, keep that information, and send a copy to investors who provide funds within 10 days of receiving those funds.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 5. Transactions in Trust Deeds and Real Property Sales Contracts [10230 - 10236.7] ( Article 5 added by Stats. 1961, Ch. 886. ) ## 10236.7. (a) A real estate broker, when engaging in acts for which a license is required, who arranges a transaction pursuant to Article 6 (commencing with Section 10237) or one or more provisions of the Corporate Securities Law of 1968 (Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code), shall clearly indicate in the real estate broker’s transaction file the provision or provisions of this code or the Corporate Securities Law of 1968 pertaining to qualification or exemption from qualification under which the transaction is being conducted. The real estate broker shall retain this information for the period specified in subdivision (a) of Section 10148. (b) The real estate broker shall submit a copy of the information described in subdivision (a) to any investor from whom the real estate broker obtains funds in connection with the transaction, either directly or through an agent or affiliate, within 10 days of receipt of those funds. (Added by Stats. 2011, Ch. 717, Sec. 10. (SB 53) Effective January 1, 2012.)
  98. 10237.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 6. Claim of Exemption From Securities Qualification [10237 - 10239.3] ( Article 6 added by Stats. 2003, Ch. 901, Sec. 2. )

    Verify source ↗

    This section limits Article 6 to one specific securities-qualification exemption and requires covered real-estate note transactions to follow all provisions of the article.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 6. Claim of Exemption From Securities Qualification [10237 - 10239.3] ( Article 6 added by Stats. 2003, Ch. 901, Sec. 2. ) ## 10237. This article applies only to the exemption from securities qualification claimed under Section 25102.5 of the Corporations Code. This article does not apply to any other exemption from securities qualification, including subdivision (e) of Section 25102 of the Corporations Code, that may be claimed without complying with this article, or to any permit to qualify the offer and sale of securities under the Corporate Securities Law of 1968 (Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code). Any transaction that involves the sale of or offer to sell a series of notes secured directly by interests in one or more parcels of real property, or the sale of undivided interests in a note secured directly by one or more parcels of real property equivalent to a series transaction, shall comply with all of the provisions of this article. (Amended (as added by Stats. 2003, Ch. 901, Sec. 2) by Stats. 2011, Ch. 717, Sec. 11. (SB 53) Effective January 1, 2012.)
  99. 10238.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 6. Claim of Exemption From Securities Qualification [10237 - 10239.3] ( Article 6 added by Stats. 2003, Ch. 901, Sec. 2. )

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    Brokers must file a notice with the commissioner within 30 days after the first transaction and after any material change, and additional servicing agents must file within 30 days if payment-volume thresholds are met.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 6. Claim of Exemption From Securities Qualification [10237 - 10239.3] ( Article 6 added by Stats. 2003, Ch. 901, Sec. 2. ) ## 10238. (a) A notice in the following form and containing the following information shall be filed with the commissioner within 30 days after the first transaction and within 30 days of any material change in the information required in the notice: TO: Real Estate Commissioner Mortgage Loan Section 1651 Exposition Boulevard Sacramento, CA 95815 This notice is filed pursuant to Sections 10237 and 10238 of the Business and Professions Code. ( ) Original Notice( ) Amended Notice 1. Name of the Broker conducting transaction under Section 10237: 2. Broker license identification number: 3. List the month the fiscal year ends: 4. Broker’s telephone number: 5. Firm name (if different from “1”): 6. Street address (main location): # and StreetCityStateZIP Code _____ 7. Mailing address (if different from “6”): 8. Servicing agent: Identify by name, address, and telephone number the person or entity who will act as the servicing agent in transactions pursuant to Section 10237 (including the undersigned Broker if that is the case): 9. Total number of multilender notes arranged: 10. Total number of interests sold to investors on the multilender’s notes: ______ 11. Inspection of trust account (before answering this question, review the provisions of paragraph (3) of subdivision (k) of Section 10238). CHECK ONLY ONE OF THE FOLLOWING: ( ) The undersigned Broker is (or expects to be) required to file reports of inspection of its trust account(s) with the Real Estate Commissioner pursuant to paragraph (3) of subdivision (k) of Section 10238. Amount of Multilender Payments Collected Last Fiscal Quarter: Total Number of Investors Due Payments Last Fiscal Quarter: ( ) The undersigned Broker is NOT (or does NOT expect to be) required to file reports of inspection of its trust account(s) with the Real Estate Commissioner pursuant to paragraph (3) of subdivision (k) of Section 10238. 12. Signature. The contents of this notice are true and correct. Date Type Name of Broker Signature of Broker or of Designated Officer of Corporate Broker Type Name of Person(s) Signing This Notice NOTE: AN AMENDED NOTICE MUST BE FILED BY THE BROKER WITHIN 30 DAYS OF ANY MATERIAL CHANGE IN THE INFORMATION REQUIRED TO BE SET FORTH HEREIN. (b) A broker or person who becomes the servicing agent for notes or interests sold pursuant to this article, upon which payments due during any period of three consecutive months in the aggregate exceed one hundred twenty-five thousand dollars ($125,000) or the number of persons entitled to the payments exceeds 120, shall file the notice required by subdivision (a) with the commissioner within 30 days after becoming the servicing agent. (c) All advertising used for transactions under this article shall show the name of the broker and comply with Section 10235 of this code and Sections 260.302 and 2848 of Title 10 of the California Code of Regulations. Brokers and their agents are cautioned that a reference to a prospective investor that a transaction is conducted under this article may be deemed misleading or deceptive if this representation may reasonably be construed by the investor as an implication of merit or approval of the transaction. (d) Each parcel of real property directly securing the notes or interests shall be located in this state, the note or notes shall not by their terms be subject to subordination to any subsequently created deed of trust upon the real property, and the note or notes shall not be promotional notes secured by liens on separate parcels of real property in one subdivision or in contiguous subdivisions. For purposes of this subdivision, a promotional note means a promissory note secured by a trust deed, executed on unimproved real property or executed after construction of an improvement of the property but before the first purchase of the property as so improved, or executed as a means of financing the first purchase of the property as so improved, that is subordinate, or by its terms may become subordinate, to any other trust deed on the property. However, the term “promotional note” does not include either of the following: (1) A note that was executed in excess of three years prior to being offered for sale. (2) A note secured by a first trust deed on real property in a subdivision that evidences a bona fide loan made in connection with the financing of the usual cost of the development in a residential, commercial, or industrial building or buildings on the property under a written agreement providing for the disbursement of the loan funds as costs are incurred or in relation to the progress of the work and providing for title insurance insuring the priority of the security as against mechanic’s and materialmen’s liens or for the final disbursement of at least 10 percent of the loan funds after the expiration of the period for the filing of mechanic’s and materialmen’s liens. (e) The notes or interests shall be sold by or through a real estate broker, as principal or agent. At the time the notes or interests are originally sold or assigned, neither the broker nor an affiliate of the broker shall have an interest as owner, lessor, or developer of the property securing the loan, or any contractual right to acquire, lease, or develop the property securing the loan. This provision does not prohibit a broker from conducting the following transactions if, in either case, the disclosure statement furnished by the broker pursuant to subdivision (l) discloses the interest of the broker or affiliate in the transaction and the circumstances under which the broker or affiliate acquired the interest: (1) A transaction in which the broker or an affiliate of the broker is acquiring the property pursuant to a foreclosure under, or sale pursuant to, a deed of trust securing a note for which the broker is the servicing agent or that the broker sold to the holder or holders. (2) A transaction in which the broker or an affiliate of the broker is reselling from inventory property acquired by the broker pursuant to a foreclosure under, or sale pursuant to, a deed of trust securing a note for which the broker is the servicing agent or that the broker sold to the holder or holders. (f) (1) The notes or interests shall not be sold to more than 10 persons, each of whom meets one or both of the qualifications of income or net worth set forth below and signs a statement, which shall be retained by the broker for four years, conforming to the following: Transaction Identifier: Name of Purchaser: Date: Check either one of the following, if true: ( ) My investment in the transaction does not exceed 10% of my net worth, exclusive of home, furnishings, and automobiles. ( ) My investment in the transaction does not exceed 10% of my adjusted gross income for federal income tax purposes for my last tax year or, in the alternative, as estimated for the current year. Signature (2) The number of offerees shall not be considered for the purposes of this section. (3) Spouses and their dependents, and an individual and his or her dependents, shall be counted as one person. (4) A retirement plan, trust, business trust, corporation, or other entity that is wholly owned by an individual and the individual’s spouse or the individual’s dependents, or any combination thereof, shall not be counted separately from the individual, but the investments of these entities shall be aggregated with those of the individual for the purposes of the statement required by paragraph (1). If the investments of any entities are required to be aggregated under this subdivision, the adjusted gross income or net worth of these entities may also be aggregated with the net worth, income, or both, of the individual. (5) The “institutional investors” enumerated in subdivision (i) of Section 25102 or subdivision (c) of Section 25104 of the Corporations Code, or in a rule adopted pursuant thereto, shall not be counted. (6) A partnership, limited liability company, corporation, or other organization that was not specifically formed for the purpose of purchasing the security offered in reliance upon this exemption from securities qualification is counted as one person. (g) The notes or interests of the purchasers shall be identical in their underlying terms, including the right to direct or require foreclosure, rights to and rate of interest, and other incidents of being a lender, and the sale to each purchaser pursuant to this section shall be upon the same terms, subject to adjustment for the face or principal amount or percentage interest purchased and for interest earned or accrued. This subdivision does not preclude different selling prices for interests to the extent that these differences are reasonably related to changes in the market value of the loan occurring between the sales of these interests. The interest of each purchaser shall be recorded pursuant to subdivisions (a) to (c), inclusive, of Section 10234. (h) (1) Except as provided in paragraph (2), the aggregate principal amount of the notes or interests sold, together with the unpaid principal amount of any encumbrances upon the real property senior thereto, shall not exceed the following percentages of the current market value of each parcel of the real property, as determined in writing by the broker or appraiser pursuant to Section 10232.6, plus the amount for which the payment of principal and interest in excess of the percentage of current market value is insured for the benefit of the holders of the notes or interests by an insurer admitted to do business in this state by the Insurance Commissioner: (A) Single-family residence, owner occupied ........................ 80% (B) Single-family residence, not owner occupied ........................ 75% (C) Commercial properties and income-producing properties not described in (B) or (E) ........................ 65% (D) Single-family residentially zoned lot or parcel that has installed offsite improvements including drainage, curbs, gutters, sidewalks, paved roads, and utilities as mandated by the political subdivision having jurisdiction over the lot or parcel ........................ 65% (E) Land that produces income from crops, timber, or minerals ........................ 60% (F) Land that is not income producing but has been zoned for (and if required, approved for subdivision as) commercial or residential development ........................ 50% (G) Other real property ........................ 35% (2) The percentage amounts specified in paragraph (1) may be exceeded when and to the extent that the broker determines that the encumbrance of the property in excess of these percentages is reasonable and prudent considering all relevant factors pertaining to the real property. However, in no event shall the aggregate principal amount of the notes or interests sold, together with the unpaid principal amount of any encumbrances upon the property senior thereto, exceed 80 percent of the current fair market value of improved real property or 50 percent of the current fair market value of unimproved real property, except in the case of a single-family zoned lot or parcel as defined in paragraph (1), which shall not exceed 65 percent of the current fair market value of that lot or parcel, plus the amount insured as specified in paragraph (1). A written statement shall be prepared by the broker that sets forth the material considerations and facts that the broker relies upon for his or her determination, which shall be retained as a part of the broker’s record of the transaction. Either a copy of the statement or the information contained therein shall be included in the disclosures required pursuant to subdivision (l). (3) A copy of the appraisal or the broker’s evaluation, for each parcel of real property securing the notes or interests, shall be delivered to each purchaser. For purposes of this paragraph, “appraisal” means a written estimate of value based upon the assembling, analyzing, and reconciling of facts and value indicators for the real property in question. A broker shall not purport to make an appraisal unless he or she is qualified on the basis of special training, preparation, or experience. (4) For construction or rehabilitation loans, the term “current market value” may be deemed to be the value of the completed project if the following safeguards are met: (A) An independent neutral third-party escrow holder is used for all deposits and disbursements. (B) The loan is fully funded, with the entire loan amount to be deposited in escrow prior to the recording of the deed or deeds of trust. (C) A comprehensive, detailed draw schedule is used to ensure proper and timely disbursements to allow for completion of the project. (D) The disbursement draws from the escrow account are based on verification from an independent qualified person who certifies that the work completed to date meets the related codes and standards and that the draws were made in accordance with the construction contract and draw schedule. For purposes of this subparagraph, “independent qualified person” means a person who is not an employee, agent, or affiliate of the broker and who is a licensed architect, general contractor, structural engineer, or active local government building inspector acting in his or her official capacity. (E) An appraisal is completed by a qualified and licensed appraiser in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). (F) In addition to the transaction documentation required by subdivision (i), the documentation shall include a detailed description of actions that may be taken in the event of a failure to complete the project, whether that failure is due to default, insufficiency of funds, or other causes. (G) The entire amount of the loan does not exceed two million five hundred thousand dollars ($2,500,000). (5) If a note or an interest will be secured by more than one parcel of real property, for the purpose of determining the maximum amount of the note or interest, each security property shall be assigned a portion of the note or interest that shall not exceed the percentage of current market value determined by, and in accordance with, the provisions of paragraphs (1) and (2). (i) The documentation of the transaction shall require both of the following: (1) A default upon any note or interest is a default upon all notes or interests. (2) The holders of more than 50 percent of the recorded beneficial interests of the notes or interests may govern the actions to be taken on behalf of all holders in accordance with Section 2941.9 of the Civil Code in the event of default or foreclosure for matters that require direction or approval of the holders, including designation of the broker, servicing agent, or other person acting on their behalf, and the sale, encumbrance, or lease of real property owned by the holders resulting from foreclosure or receipt of a deed in lieu of foreclosure. The terms called for by this subdivision may be included in the deed of trust, in the assignment of interests, or in any other documentation as is necessary or appropriate to make them binding on the parties. (j) (1) The broker shall not accept any purchase or loan funds or other consideration from a prospective lender or purchaser, or directly or indirectly cause the funds or other consideration to be deposited in an escrow or trust account, except as to a specific loan or note secured by a deed of trust that the broker owns, is authorized to negotiate, or is unconditionally obligated to buy. (2) All funds received by the broker from the purchasers or lenders shall be handled in accordance with Section 10145 for disbursement to the persons thereto entitled upon recordation of the interests of the purchasers or lenders in the note and deed of trust. No provision of this article shall be construed as modifying or superseding applicable law regulating the escrow holder in any transaction or the handling of the escrow account. (3) The books and records of the broker or servicing agent, or both, shall be maintained in a manner that readily identifies transactions under this article and the receipt and disbursement of funds in connection with these transactions. (4) If required by paragraph (3) of subdivision (k), the review by the independent certified public accountant shall include a sample of transactions, as reflected in the records of the trust account required pursuant to paragraph (1) of subdivision (k), and the bank statements and supporting documents. These documents shall be reviewed for compliance with this article with respect to the handling and distribution of funds. The sample shall be selected at random by the accountant from all these transactions and shall consist of both of the following: (A) Three sales made or 5 percent of the sales made pursuant to this article during the period for which the examination is conducted, whichever is greater. (B) Ten payments processed or 2 percent of payments processed under this article during the period for which the examination is conducted, whichever is greater. (5) For the purposes of this subdivision, the transaction that constitutes a “sale” is the series of transactions by which a series of notes of a maker, or the interests in the note of a maker, are sold or issued to their various purchasers under this article, including all receipts and disbursements in that process of funds received from the purchasers or lenders. The transaction that constitutes a “payment,” for the purposes of this subdivision, is the receipt of a payment from the person obligated on the note or from some other person on behalf of the person so obligated, including the broker or servicing agent, and the distribution of that payment to the persons entitled thereto. If a payment involves an advance paid by the broker or servicing agent as the result of a dishonored check, the inspection shall identify the source of funds from which the payment was made or, in the alternative, the steps that are reasonably necessary to determine that there was not a disbursement of trust funds. The accountant shall inspect for compliance with the following specific provisions of this section: paragraphs (1), (2), and (3) of this subdivision and paragraphs (1) and (2) of subdivision (k). (6) Within 30 days of the close of the period for which the report is made, or within any additional time as the commissioner may in writing allow in a particular case, the accountant shall forward to the broker or servicing agent, as the case may be, and to the commissioner, the report of the accountant, stating that the inspection was performed in accordance with this section, listing the sales and the payments examined, specifying the nature of the deficiencies, if any, noted by the accountant with respect to each sale or payment, together with any further information as the accountant may wish to include, such as corrective steps taken with respect to any deficiency so noted, or stating that no deficiencies were observed. If the broker meets the threshold criteria of Section 10232, the report of the accountant shall be submitted as part of the quarterly reports required under Section 10232.25. (k) The notes or interests shall be sold subject to a written agreement that obligates a licensed real estate broker, or a person exempted from the licensing requirement for real estate brokers under this chapter, to act as agent for the purchasers or lenders to service the note or notes and deed of trust, including the receipt and transmission of payments and the institution of foreclosure proceedings in the event of a default. A copy of this servicing agreement shall be delivered to each purchaser. The broker shall offer to the lenders or purchasers the services of the broker or one or more affiliates of the broker, or both, as servicing agent for each transaction conducted pursuant to this article. The agreement shall require all of the following: (1) (A) That payments received on the note or notes be deposited immediately to a trust account maintained in accordance with this section and with the provisions for trust accounts of licensed real estate brokers contained in Section 10145 and Article 15 (commencing with Section 2830.1) of Chapter 6 of Title 10 of the California Code of Regulations. (B) That payments deposited pursuant to subparagraph (A) shall not be commingled with the assets of the servicing agent or used for any transaction other than the transaction for which the funds are received. (2) That payments received on the note or notes shall be transmitted to the purchasers or lenders pro rata according to their respective interests within 25 days after receipt thereof by the agent. If the source for the payment is not the maker of the note, the agent shall inform the purchasers or lenders in writing of the source for payment. A broker or servicing agent who transmits to the purchaser or lenders the broker’s or servicing agent’s own funds to cover payments due from the borrower but unpaid as a result of a dishonored check may recover the amount of the advances from the trust fund when the past due payment is received. However, this article does not authorize the broker, servicing agent, or any other person to issue, or to engage in any practice constituting, any guarantee or to engage in the practice of advancing payments on behalf of the borrower. (3) If the broker or person who is or becomes the servicing agent for notes or interests sold pursuant to this article upon which the payments due during any period of three consecutive months in the aggregate exceed one hundred twenty-five thousand dollars ($125,000) or the number of persons entitled to the payments exceeds 120, the trust account or accounts of that broker or affiliate shall be inspected by an independent certified public accountant at no less than three-month intervals during the time the volume is maintained. Within 30 days after the close of the period for which the review is made, the report of the accountant shall be forwarded as provided in paragraph (6) of subdivision (j). If the broker is required to file an annual report pursuant to subdivision (o) or pursuant to Section 10232.2, the quarterly report pursuant to this subdivision need not be filed for the last quarter of the year for which the annual report is made. For the purposes of this subdivision, an affiliate of a broker is any person controlled by, controlling, or under common control with the broker. (4) Unless the servicing agent will receive notice pursuant to Section 2924b of the Civil Code, the servicing agent shall file a written request for notice of default upon any prior encumbrances and promptly notify the purchasers or lenders of any default on the prior encumbrances or on the note or notes subject to the servicing agreement. (5) The servicing agent shall promptly forward copies of both of the following to each purchaser or lender: (A) Any notice of trustee sale filed on behalf of the purchasers or lenders. (B) Any request for reconveyance of the deed of trust received on behalf of the purchasers or lenders. (l) The broker shall disclose in writing to each purchaser or lender the material facts concerning the transaction on a disclosure form adopted or approved by the commissioner pursuant to Section 10232.5, subject to the following: (1) The disclosure form shall include a description of the terms upon which the note and deed of trust are being sold, including the terms of the undivided interests being offered therein, including the following: (A) In the case of the sale of an existing note: (i) The aggregate sale price of the note. (ii) The percent of the premium over or discount from the principal balance plus accrued but unpaid interest. (iii) The effective rate of return to the purchasers if the note is paid according to its terms. (iv) The name and address of the escrow holder for the transaction. (v) A description of, and the estimated amount of, each cost payable by the seller in connection with the sale and a description of, and the estimated amount of, each cost payable by the purchasers in connection with the sale. (B) In the case of the origination of a note: (i) The name and address of the escrow holder for the transaction. (ii) The anticipated closing date. (iii) A description of, and the estimated amount of, each cost payable by the borrower in connection with the loan and a description of, and the estimated amount of, each cost payable by the lenders in connection with the loan. (C) In the case of a transaction involving a note or interest secured by more than one parcel of real property, in addition to the requirements of subparagraphs (A) and (B): (i) The address, description, and estimated fair market value of each property securing the loan. (ii) The amount of the available equity in each property securing the loan after the loan amount to be apportioned to each property is assigned. (iii) The loan to value percentage for each property after the loan amount to be apportioned to each property is assigned pursuant to subdivision (h). (2) A copy of the written statement or information contained therein, as required by paragraph (2) of subdivision (h), shall be included in the disclosure form. (3) Any interest of the broker or affiliate in the transaction, as described in subdivision (e), shall be included with the disclosure form. (4) When the particular circumstances of a transaction make information not specified in the disclosure form material or essential to keep the information provided in the form from being misleading, and the other information is known to the broker, the other information shall also be provided by the broker. (5) If more than one parcel of real property secures the notes or interests, the disclosure form shall also fully disclose any risks to investors associated with securing the notes or interests with multiple parcels of real property. (m) The broker or servicing agent shall furnish any purchaser of a note or interest, upon request, with the names and addresses of the purchasers of the other notes or interests in the loan. (n) No agreement in connection with a transaction covered by this article shall grant to the real estate broker, the servicing agent, or any affiliate of the broker or agent the option or election to acquire the interests of the purchasers or lenders or to acquire the real property securing the interests. This subdivision shall not prohibit the broker or affiliate from acquiring the interests, with the consent of the purchasers or lenders whose interests are being purchased, or the property, with the written consent of the purchasers or lenders, if the consent is given at the time of the acquisition. (o) Each broker who conducts transactions under this article, or broker or person who becomes the servicing agent for notes or interests sold pursuant to this article, who meets the criteria of paragraph (3) of subdivision (k) shall file with the commissioner an annual report of a review of its trust account. The report shall be prepared and filed in accordance with subdivision (a) of Section 10232.2 and the rules and procedures thereunder of the commissioner. That report shall cover the broker’s transactions under this article and, if the broker also meets the threshold criteria set forth in Section 10232, the broker’s transactions subject to that section shall be included as well. (p) Each broker conducting transactions pursuant to this article, or broker or person who becomes the servicing agent for notes or interests sold pursuant to this article, who meets the criteria of paragraph (3) of subdivision (k) shall file with the commissioner a report of the transactions that is prepared in accordance with subdivision (c) of Section 10232.2. If the broker also meets the threshold criteria of Section 10232, the report shall also include the transactions subject to that section. This report shall be confidential pursuant to subdivision (f) of Section 10232.2. (Amended by Stats. 2018, Ch. 285, Sec. 50. (AB 2884) Effective January 1, 2019.)
  100. 10239.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 6. Claim of Exemption From Securities Qualification [10237 - 10239.3] ( Article 6 added by Stats. 2003, Ch. 901, Sec. 2. )

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    This section says the article does not change the Commissioner of Financial Protection and Innovation’s jurisdiction and does not override the Corporate Securities Law of 1968.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 6. Claim of Exemption From Securities Qualification [10237 - 10239.3] ( Article 6 added by Stats. 2003, Ch. 901, Sec. 2. ) ## 10239. The jurisdiction of the Commissioner of Financial Protection and Innovation under the Corporate Securities Law of 1968 shall be neither limited nor expanded by this article. Nothing in this article shall be construed to supersede or restrict the application of the Corporate Securities Law of 1968. A transaction under this article shall not be construed to be a transaction involving the issuance of securities subject to authorization by the Real Estate Commissioner under subdivision (e) of Section 25100 of the Corporations Code. (Amended by Stats. 2022, Ch. 452, Sec. 10. (SB 1498) Effective January 1, 2023.)
  101. 10239.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 6. Claim of Exemption From Securities Qualification [10237 - 10239.3] ( Article 6 added by Stats. 2003, Ch. 901, Sec. 2. )

    Verify source ↗

    This section says the article does not change existing agency relationships or reduce brokers’ fiduciary duties in covered transactions.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 6. Claim of Exemption From Securities Qualification [10237 - 10239.3] ( Article 6 added by Stats. 2003, Ch. 901, Sec. 2. ) ## 10239.1. Nothing in this article shall be construed to change the agency relationships between the parties where they exist or limit in any manner the fiduciary duty of brokers to borrowers, lenders, and purchasers of notes or interests in transactions subject to this article. (Added by Stats. 2003, Ch. 901, Sec. 2. Effective January 1, 2004.)
  102. 10239.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 6. Claim of Exemption From Securities Qualification [10237 - 10239.3] ( Article 6 added by Stats. 2003, Ch. 901, Sec. 2. )

    Verify source ↗

    This section defines key terms used in the article, including “broker,” “affiliate,” “servicing agent,” and the meanings of “sale” and “offer to sell.”

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 6. Claim of Exemption From Securities Qualification [10237 - 10239.3] ( Article 6 added by Stats. 2003, Ch. 901, Sec. 2. ) ## 10239.2. For the purposes of this article, the following definitions shall apply: (a) “Broker” means a person licensed as a broker under this part. (b) “Affiliate” means a person controlled by, controlling, or under common control with, the broker. (c) “Servicing agent” means the real estate broker or person exempted from the licensing requirements for real estate brokers under this chapter, to act as agent for the purchasers or lenders to service the notes and deeds of trust, including the handling the receipt and transmission of payments and the institution of foreclosure proceedings in the event of a default. (d) Except as provided in paragraph (5) of subdivision (j) of Section 10238, the terms “sale” and “offer to sell,” shall have the same meaning as set forth in Section 25017 of the Corporations Code and include the acts of negotiating and arranging the transaction. (Added by Stats. 2003, Ch. 901, Sec. 2. Effective January 1, 2004.)
  103. 10239.3.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 6. Claim of Exemption From Securities Qualification [10237 - 10239.3] ( Article 6 added by Stats. 2003, Ch. 901, Sec. 2. )

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    If a non-broker or certain non-parent/subsidiary affiliates make or keep the specified transaction records, this article and any related regulations or orders apply to them as if they were the broker or affiliate.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 6. Claim of Exemption From Securities Qualification [10237 - 10239.3] ( Article 6 added by Stats. 2003, Ch. 901, Sec. 2. ) ## 10239.3. (a) If any person other than a real estate broker makes or keeps any of the books, accounts, or other records maintained in connection with a transaction described in this article, the provisions of this article and of any regulation or order issued under this section shall apply to the person with respect to the performance of those services and with respect to those books, accounts, and other records to the same extent as if the person were the broker. (b) If any person other than an affiliate of a broker makes or keeps any of the books, accounts, or other records maintained in connection with a transaction described in this article, or in the case of an affiliate other than a parent or subsidiary of the broker, the provisions of this article and of any regulation or order issued under this article shall apply to the person with respect to those books, accounts, and other records to the same extent as if the person were the affiliate. (Added by Stats. 2003, Ch. 901, Sec. 2. Effective January 1, 2004.)
  104. 10240.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

    Verify source ↗

    Real estate brokers making certain real-property loans must deliver the required written statement quickly, keep copies for three years, and ensure borrowers sign and receive required disclosures.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10240. (a) Every real estate broker, upon acting within the meaning of subdivision (d) of Section 10131, who negotiates a loan to be secured directly or collaterally by a lien on real property shall, within three business days after receipt of a completed written loan application or before the borrower becomes obligated on the note, whichever is earlier, cause to be delivered to the borrower a statement in writing, containing all the information required by Section 10241. It shall be personally signed by the borrower and by the real estate broker negotiating the loan or by a real estate licensee acting for the broker in negotiating the loan. When so executed, an exact copy thereof shall be delivered to the borrower at the time of its execution. The real estate broker negotiating the loan shall retain on file for a period of three years a true and correct copy of the statement as signed by the borrower. No real estate licensee shall permit the statement to be signed by a borrower if any information required by Section 10241 is omitted. (b) For the purposes of applying the provisions of this article, a real estate broker is acting within the meaning of subdivision (d) of Section 10131 if he or she solicits borrowers, or causes borrowers to be solicited, through express or implied representations that the broker will act as an agent in arranging a loan, but in fact makes the loan to the borrower from funds belonging to the broker. (c) In a federally regulated residential mortgage loan transaction in which the principal loan amount exceeds the principal loan levels set forth in Section 10245, a real estate broker satisfies the requirements of this section if the borrower receives (1) a “good faith estimate” that satisfies the requirements of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C.A. 2601 et seq.), and that sets forth the broker’s real estate license number and a clear and conspicuous statement on the face of the document stating that the “good faith estimate” does not constitute a loan commitment, (2) all applicable disclosures required by the Truth in Lending Act (15 U.S.C.A. 1601 et seq.), and (3) if the loan contains a balloon payment provision, the disclosure described in subdivision (h) of Section 10241, the balloon disclosure required for that loan by Fannie Mae or Freddie Mac, or an alternative disclosure determined by the commissioner to satisfy the requirements of the Truth in Lending Act. Prior to becoming obligated on the loan the borrower shall acknowledge, in writing, receipt of the “good faith estimate” and all applicable disclosures required by the Truth in Lending Act. The real estate broker shall retain on file for a period of three years a true and correct copy of the signed acknowledgment and a true and correct copy of the “good faith estimate” and all applicable disclosures required by the Truth in Lending Act as acknowledged by the borrower. (Amended by Stats. 2001, Ch. 389, Sec. 3. Effective January 1, 2002.)
  105. 10240.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

    Verify source ↗

    This article applies only to loans secured by a dwelling, except for Section 10240.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10240.1. The provisions of this article, exclusive of the provisions of Section 10240, apply only to loans secured by a dwelling. (Added by Stats. 1985, Ch. 1355, Sec. 5.)
  106. 10240.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

    Verify source ↗

    This section defines “dwelling” for this article.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10240.2. As used in this article, “ dwelling” means any of the following units which are owned by a signatory to the mortgage or deed of trust secured by the dwelling unit at the time of execution of the mortgage or deed of trust: (a) A single dwelling unit in a condominium or cooperative. (b) Any parcel containing only residential buildings if the total number of units on the parcel is four or less. (Added by Stats. 1985, Ch. 1355, Sec. 6.)
  107. 10240.3.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    The commissioner must apply specified mortgage-risk guidance to certain real estate brokers, and those brokers must adopt and follow policies and procedures aimed at those guidance objectives.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10240.3. (a) The commissioner shall apply the guidance on nontraditional mortgage product risks published on November 14, 2006, by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, and the Statement on Subprime Mortgage Lending published on July 17, 2007, by the aforementioned entities and the National Association of Consumer Credit Administrators, to real estate brokers acting within the meaning of Section 10131.1 or subdivision (d) of Section 10131. (b) The commissioner may adopt emergency and final regulations to clarify the application of this section as soon as possible. (c) A real estate broker acting within the meaning of Section 10131.1 or subdivision (d) of Section 10131 shall adopt and adhere to policies and procedures that are reasonably intended to achieve the objectives set forth in the documents described in subdivision (a). (Added by Stats. 2007, Ch. 301, Sec. 3. Effective January 1, 2008.)
  108. 10241.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    A loan disclosure statement must separately list specified loan costs, terms, liens, broker information, and related notices, and the commissioner must approve the form.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10241. The statement required by Section 10240, the form of which shall be approved by the commissioner, shall set forth separately the following items: (a) The estimated maximum costs and expenses of making the loan, which are to be paid by the borrower, including but not limited to, the following: (1) Appraisal fees. (2) Escrow fees. (3) Title charges. (4) Notary fees. (5) Recording fees. (6) Credit investigation fees. If a real estate licensee performs or is to perform any of the services for which costs and expenses are disclosed pursuant to this subdivision, the licensee shall be entitled to those costs and expenses in addition to the charges specified in subdivision (b). (b) The total of the brokerage or commissions contracted for, or to be received by, the real estate broker for services performed as an agent in negotiating, procuring, or arranging the loan or the total of loan origination fees, points, bonuses, and other charges in lieu of interest to be received by the broker if he or she elects to act as a lender rather than agent in the transaction. (c) Any liens against the real property, as disclosed by the borrower, the approximate amount thereof, and whether each lien will remain senior, or will be subordinate, to the lien that will secure the loan. (d) The estimated amounts to be paid on the order of the borrower, as disclosed by the borrower, including, but not limited to: (1) Fire insurance premiums. (2) Amounts due on prior liens, including interest or other charges arising in connection with the payment, release, reconveyance, extinction, or other removal of record of the prior liens. (3) Amounts due other creditors. (4) Assumption, transfer, forwarding, and beneficiary statement fees. (e) The estimated balance of the loan funds to be paid to the borrower after deducting the total of amounts disclosed pursuant to subdivisions (a), (b), and (d). (f) The principal amount of the loan. (g) The rate of interest. (h) The term of the loan, the number of installments, the amount of each installment, and the approximate balance due at maturity, and the following notice in 10-point bold typeface: “NOTICE TO BORROWER: IF YOU DO NOT HAVE THE FUNDS TO PAY THE BALLOON PAYMENT WHEN IT COMES DUE, YOU MAY HAVE TO OBTAIN A NEW LOAN AGAINST YOUR PROPERTY TO MAKE THE BALLOON PAYMENT. IN THAT CASE, YOU MAY AGAIN HAVE TO PAY COMMISSIONS, FEES, AND EXPENSES FOR THE ARRANGING OF THE NEW LOAN. IN ADDITION, IF YOU ARE UNABLE TO MAKE THE MONTHLY PAYMENTS OR THE BALLOON PAYMENT, YOU MAY LOSE THE PROPERTY AND ALL OF YOUR EQUITY THROUGH FORECLOSURE. KEEP THIS IN MIND IN DECIDING UPON THE AMOUNT AND TERMS OF THIS LOAN.” (i) A statement containing the name of the real estate broker negotiating the loan, his or her license number, and the address of his or her licensed place of business. (j) If the broker anticipates that the loan to the borrower may be made wholly or in part from broker-controlled funds, a statement to that effect. For purposes of this section, “broker-controlled funds” means funds owned by the broker, by a spouse, child, parent, grandparent, brother, sister, father-in-law, mother-in-law, brother-in-law, or sister-in-law of the broker, or by any entity in which the broker alone or together with any of the above relatives of the broker has an ownership interest of 10 percent or more. (k) The terms of prepayment privileges and penalties, if any. (l) A statement that the purchase of credit or credit disability insurance is not required as a condition for the making of the loan. (m) If the loan is one that is within the limits specified in Section 10245, a certification by the real estate licensee negotiating the loan that the loan is being made in compliance with the provisions of this article. (Amended by Stats. 1989, Ch. 1275, Sec. 5.5.)
  109. 10241.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    A lender’s licensee may offer and collect the cost of certain borrower insurance only under stated conditions, and may not require purchase of credit life or credit disability insurance as a loan condition.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10241.1. (a) The purchase of credit life insurance on the life of the borrower or credit disability insurance to provide indemnity for payments becoming due on the indebtedness shall not be required as a condition of making a loan under this article. (b) The licensee may provide through duly licensed agents, and collect from the borrower the costs of purchasing, credit life insurance on the life of a borrower and credit disability insurance to provide indemnity for payments becoming due on the indebtedness, with the borrower’s consent. The form and rate of the insurance shall be approved by the Insurance Commissioner, as provided in Section 779.9 of the Insurance Code. The insurance shall be in an amount not in excess of that reasonably necessary to discharge the obligation of the borrower, and for a term not exceeding the term of the loan. Only one premium for credit disability insurance may be collected by the licensee in connection with any loan contract irrespective of the number of borrowers, and only one borrower may be insured, except that where more than one borrower is a party to a loan contract and each borrower is a wage earner whose earnings are reasonably relied upon by the lender for the repayment of the loan, each borrower may be insured. (c) The licensee may collect from the borrower the costs of purchasing fire and hazard insurance on the property offered as security for a loan in order to reasonably insure against loss for a reasonable term considering the circumstances of the loan, (1) if the policy or policies of insurance are made payable to the borrower or any member of his or her family, regardless of whether a customary mortgagee clause is attached, and (2) if the insurance is sold at standard rates through duly licensed agents. (d) If premiums for any insurance provided under this section are to be paid from the proceeds of the loan, any amount so paid and any commission under subdivision (b) of Section 10242 attributable to borrowing that amount, shall not be considered in determining whether the loan is exempt from this article under Section 10245. (Amended by Stats. 1989, Ch. 1275, Sec. 6.)
  110. 10241.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    If a broker makes a Section 10240 loan using broker-controlled funds, the broker must tell the borrower by the next business day, and no later than close of escrow.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10241.2. If the broker elects to make a loan subject to Section 10240 which consists wholly or in part of broker-controlled funds as defined in subdivision (j) of Section 10241, the broker shall advise the borrower of that fact not later than the next business day after making the election, but in any event before the close of escrow of the loan transaction. (Added by Stats. 1982, Ch. 886, Sec. 6.)
  111. 10241.3.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    If a borrower is charged a fee for an appraisal in a loan transaction, a copy of the appraisal report must be given to both the borrower and the lender by or on behalf of the broker before closing.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10241.3. In any loan transaction in which a fee is charged to a borrower for an appraisal of the real property that will serve as security for the loan, a copy of the appraisal report shall be given by or on behalf of the broker to both the borrower and the lender at or before the closing of the loan transaction. (Added by Stats. 1984, Ch. 828, Sec. 1.)
  112. 10241.4.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    If a loan on a dwelling with a balloon payment includes an unstated promise to extend or refinance, that undertaking must be in writing and the borrower must receive the required notice.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10241.4. (a) Prior to a borrower becoming obligated on any loan secured by a dwelling that provides for a balloon payment and is otherwise subject to Section 10240, if any agreement includes a promise, representation, or similar undertaking to extend or seek the extension of the term of the loan or refinancing of the loan, and the undertaking is not set forth in the promissory note evidencing the loan or in a rider to that note, the undertaking shall be in writing and the notice required by this section shall be provided to the borrower. (b) The notice required by subdivision (a), shall state in at least 10-point boldface capitalized type: “AS THIS LOAN PROVIDES FOR A BALLOON PAYMENT, SEE THE MORTGAGE LOAN DISCLOSURE STATEMENT/GOOD FAITH ESTIMATE FOR IMPORTANT INFORMATION ON BALLOON PAYMENTS. ALSO, REFER TO THE LOAN DOCUMENTS AND THIS EXTENSION AGREEMENT FOR YOUR SPECIFIC RIGHTS AND OBLIGATIONS.” (c) The notice shall also contain, in at least 10-point boldface capitalized type, either of the following statements depending upon which statement best describes the nature of the undertaking: (1) The lender or noteholder has agreed to an extension, refinancing, or renegotiation of the terms of this loan, and the lender’s or noteholder’s signed agreement is attached (or the notice may describe the method used to furnish that signed document). Transmission by a broker of a lender’s or noteholder’s undertaking or the broker’s representation of that undertaking, pursuant to this section, does not of itself, create or alter any agency or similar relationship between the lender or noteholder and the borrower, or the lender or noteholder and the broker. (2) The broker, ____ (insert name of broker making or arranging the loan), has agreed to use his or her best efforts to obtain a future extension, refinancing, or renegotiation of the loan by the lender or note owner. There can be no assurance or guarantee that the lender or note owner will agree. (Added by Stats. 1994, Ch. 86, Sec. 1. Effective January 1, 1995. Operative July 1, 1995, by Sec. 2 of Ch. 86.)
  113. 10242.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    This section caps certain loan-related costs, charges, and interest for loans covered by the article.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10242. The maximum amount of expenses, charges and interest to be paid by a borrower with respect to any loan subject to this article shall be as follows: (a) The maximum amount of all costs and expenses referred to in subdivision (a) of Section 10241, exclusive of actual title charges and recording fees, shall not exceed 5 percent of the principal amount of the loan or three hundred ninety dollars ($390), whichever is greater but in no event to exceed seven hundred dollars ($700), provided that in no event shall said maximum amount exceed actual costs and expenses paid, incurred or reasonably earned. (b) The maximum amount of the charges referred to in subdivision (b) of Section 10241 shall not exceed the following amounts: (1) In the case of a loan secured directly or collaterally, in whole or in part by a first trust deed, 5 percent of the principal amount of the loan where the term of the loan is a period of less than three years and 10 percent where the term is a period of three years or more. (2) In the case of a loan secured directly or collaterally by a trust deed other than a first trust deed, 5 percent of the principal amount of the loan where the term of the loan is a period of less than two years, 10 percent where the term is a period of two years but less than three years, and 15 percent where the term is a period of three years or more. (3) With respect to a further advance on a note, the charges shall not exceed the charges for an original loan in the same amount as the further advance and made for a term equal to the remaining term of the note on which the further advance is being made, including any extension thereof. (c) No interest may be charged with respect to any period prior to the date that the proceeds of the loan are made available to the borrower or are deposited in escrow. (Amended by Stats. 1990, Ch. 834, Sec. 1.)
  114. 10242.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    Late charges on certain real-estate-secured loan installments are capped at 10% of the installment, with a $5 minimum in some cases, and no late charge may be charged more than once or on payments made within 10 days after the due date.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10242.5. (a) A charge imposed for late payment of an installment due on a loan secured by a mortgage or deed of trust on real property shall not exceed an amount equal to 10 percent of the installment due, except that a minimum charge of five dollars ($5) may be imposed when the late charge permitted by this section would otherwise be less than that minimum charge. The charge permitted by this section may be assessed only as a percentage of the increment of any installment due that is attributable to principal and interest. (b) No charge may be imposed more than once for the same late payment of an installment. No late charge may be imposed on any installment which is paid or tendered in full within 10 days after its scheduled due date, even though an earlier maturing installment or a late charge on an earlier installment may not have been paid in full. For purposes of this subdivision, a payment or tender of payment made within 10 days of a scheduled installment due date shall be deemed to have been made or tendered for payment of that installment. (c) A late-payment charge may be imposed pursuant to this subdivision for the payment of any balloon payment more than 10 days after the date due. The charge shall not exceed an amount equal to the maximum late charge that could have been assessed with respect to the largest single monthly installment previously due, other than the balloon payment, multiplied by the sum of one plus the number of months occurring since the late-payment charge began to accrue. For purposes of this subdivision, “month” means the period between a particular day of a calendar month and the same day of the next calendar month. (Amended by Stats. 1989, Ch. 1275, Sec. 7.)
  115. 10242.6.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    Borrowers on covered single-family owner-occupied real-property loans may prepay, but charges are limited and no prepayment penalty may be charged in a qualifying disaster case.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10242.6. (a) The principal and accrued interest on any loan secured by a mortgage or deed of trust on real property containing only a single-family, owner-occupied dwelling may be prepaid in whole or in part at any time but only a prepayment made within seven years of the date of execution of such mortgage or deed of trust may be subject to a prepayment charge and then solely as herein set forth. An amount not exceeding 20 percent of the unpaid balance may be prepaid in any 12-month period. A prepayment charge may be imposed on any amount prepaid in any 12-month period in excess of 20 percent of the unpaid balance which charge shall not exceed an amount equal to the payment of six months’ advance interest on the amount prepaid in excess of 20 percent of the unpaid balance. (b) Notwithstanding subdivision (a), there shall be no prepayment penalty charged to a borrower under a loan subject to this section if the dwelling securing the loan has been damaged to such an extent by a natural disaster for which a state of emergency is declared by the Governor, pursuant to Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code, that the dwelling cannot be occupied and the prepayment is causally related thereto. (c) As used in this section, “owner-occupied dwelling” means a dwelling which will be owned and occupied by a signatory to the mortgage or deed of trust secured by the dwelling within 90 days of the execution of the mortgage or deed of trust. (Amended by Stats. 1990, Ch. 663, Sec. 1.)
  116. 10243.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    A borrower who fails to disclose certain material lien or title information may have to pay specified costs and charges. An exclusive loan-negotiation agreement is capped at 45 days, and a broker generally may not record a lien or encumbrance on the borrower’s property unless a legal action has been filed, with a separate voluntary-lien exception.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10243. If the loan is not consummated due to the failure of the borrower to disclose the outstanding liens of record or the correct current vested title which is material to the loan upon the real property as provided by subdivision (c) of Section 10241, the borrower shall be liable for the costs and expenses provided in subdivision (a) of Section 10241 that have been paid or incurred and shall be liable for the payment of one-half of the charges provided in subdivision (b) of Section 10241. An exclusive agreement authorizing or retaining a licensee to negotiate a loan secured directly or collaterally by a lien on real property shall be limited to a term of not more than 45 days. If the loan is not consummated and the broker is entitled to any charges, costs, or expenses authorized by this article, he or she may not record a lien or encumbrance against the borrower’s property except subsequent to the filing of a legal action pursuant to the Code of Civil Procedure to recover said charges, costs, or expenses. However, nothing contained herein shall prohibit a broker from recording a lien pursuant to a voluntary lien agreement in conjunction with a stipulation to dismiss an actual or proposed complaint for damages entitling the broker to those charges, costs, or expenses after written notice to the borrower that the broker proposes or has initiated a complaint for damages pursuant to the Code of Civil Procedure. (Amended by Stats. 2018, Ch. 285, Sec. 51. (AB 2884) Effective January 1, 2019.)
  117. 10244.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    Loans secured directly by a lien on real property with terms under three years must use substantially equal installments, with the last payment due at maturity.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10244. Any loan made by any person and secured directly by a lien on real property, other than a note given back to the seller by the purchaser on account of the purchase price, which provides for installment payments and the term of which is less than three years, shall require substantially equal installment payments over the period of the loan with the final payment not payable until the maturity date thereof. No installment including the final installment shall be greater than twice the amount of the smallest installment. If any loan having an original maturity period of less than three (3) years is renewed or refinanced, the total amount of charges to be paid on both the original obligation and the balance of such obligation, as renewed or refinanced, shall not in the aggregate exceed the amount of charges as provided in Section 10242, and if such a loan is renewed or refinanced through the person who negotiated the original loan, the total amount of costs and expenses to be paid on both the original obligation and the renewed or refinanced obligation shall not exceed in the aggregate the amount of costs and expenses authorized in subdivision (a) of said section. The provisions of this section do not apply to a bona fide loan, secured by a first trust deed on real property, made in connection with the financing of the usual costs of the development of a residential, commercial or industrial building or buildings on the property under a written agreement providing for the disbursement of the loan funds as costs are incurred or in relation to the progress of the work and providing for title insurance insuring the priority of the security as against mechanic’s and materialmen’s liens or for the final disbursement of at least ten (10) percent of the loan funds after the expiration of the period for the filing of mechanics and materialmen’s liens. (Amended by Stats. 1963, Ch. 1978.)
  118. 10244.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    For certain loans secured by a lien on an owner-occupied dwelling, no installment may be more than twice the smallest installment if the loan term is six years or less.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10244.1. Notwithstanding the provisions of Section 10244, on a loan secured directly or collaterally by a lien on real property comprising an owner-occupied dwelling, for a term of six years or less, no installment, whether providing for payment of principal and interest or interest only, shall be greater than twice the amount of the smallest installment. This section does not apply to a note given back to the seller by the purchaser on account for the purchase price or any collateral loans secured solely by such a note. As used in this section, “owner-occupied dwelling” means a single dwelling unit in a condominium or cooperative or a residential building of less than three separate dwelling units, one of which will be owned and occupied by a signatory to the mortgage or deed of trust secured by such dwelling within 90 days of the execution of the mortgage or deed of trust. (Added by Stats. 1973, Ch. 641.)
  119. 10245.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    This section says most of the article does not apply to certain bona fide loans secured by a first trust deed or junior lien when the principal amount is high enough.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10245. The provisions of this article, exclusive of the provisions of Sections 10240, 10240.3, 10242.5, and 10242.6, do not apply to any bona fide loan secured directly or collaterally by a first trust deed, the principal of which is thirty thousand dollars ($30,000) or more, or to any bona fide loan secured directly or collaterally by any lien junior thereto, the principal of which is twenty thousand dollars ($20,000) or more. (Amended by Stats. 2007, Ch. 301, Sec. 4. Effective January 1, 2008.)
  120. 10246.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    If a borrower is charged or receives an amount above the allowed limits, the borrower may recover triple the excess amount, plus costs and a reasonable attorney’s fee. The borrower must file the recovery action within two years of receipt, and a bona fide error limits recovery to the excess amount only.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10246. If any amount: (a) In excess of the charges referred to in Section 10241 and limited by Section 10242, (b) In excess of the charges permitted by Section 10242.5, or (c) Prohibited by Section 10248.1, is received, the borrower may recover, from the person who shall have taken or received the excess or prohibited amount, three times the amount of the excess or prohibited amount and the borrower shall be entitled to costs and a reasonable attorney’s fee; provided that any action for recovery must be brought within two (2) years from the date such excess or prohibited charge was received. However, if the excess or prohibited amount is the result of a bona fide error the borrower may only recover such excess or prohibited amount. (Amended by Stats. 1973, Ch. 641.)
  121. 10247.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    This article’s rules on maximum costs, expenses, charges, interest, and its penalties apply to transactions that use a third party as a purported lender or that are used to evade the article.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10247. The provisions of this article pertaining to maximum costs and expenses, charges and interest, together with the penalties stated in this article, shall apply to any transaction involving a third party as a purported lender or any other transaction which is used as a subterfuge or means of avoiding or evading the provisions of this article. (Added by Stats. 1961, Ch. 886.)
  122. 10248.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    People who deal in certain real-property-secured promissory notes for compensation may charge only the maximum total charges allowed by Section 10242.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10248. Every person who, for compensation to be received directly or indirectly, sells, offers to sell, purchases for resale or offers to purchase for resale, or who negotiates or arranges for the purchase, sale or exchange of a promissory note secured directly or collaterally by a lien on real property, may receive only the maximum total charges provided for in Section 10242. (Added by Stats. 1961, Ch. 886.)
  123. 10248.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    A real estate licensee may not charge, receive, or negotiate borrower-paid service charges or fees unless they fall within listed statutory or lawful exceptions.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10248.1. No real estate licensee shall charge, receive, or negotiate for the payment by the borrower of any service charge or fee other than charges and fees specified in Sections 10241, 10241.1, 10242, and 10242.5, prepayment penalties as authorized by law, beneficiary-statement, payoff-demand, extinction, release, reconveyance or other removal of record fees, and trustee’s costs and fees, and any other fees if in accordance with the Civil Code and the Code of Civil Procedure. (Amended by Stats. 1989, Ch. 1275, Sec. 9.)
  124. 10248.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    A borrower cannot waive rights or remedies under this article, and a licensee may have to return certain loan-related payments or pay money to the borrower if the article or Section 10241.1 is violated.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10248.2. (a) A borrower may not waive any right or remedy under this article. This subdivision shall not be deemed to prohibit a bona fide settlement, release or compromise of any claim under this article. (b) If a loan is negotiated in violation of any section of this article, the licensee, on demand, shall return to the borrower any bonus, brokerage or commission paid or payable under subdivision (b) of Section 10242 for negotiation of such loans. In the event such demand is not satisfied within 20 days from the date of written demand, the borrower may commence an action under this subdivision and may recover actual damages or twice any bonus, brokerage, or commission paid or payable under subdivision (b) of Section 10242 for the negotiation of said loan whichever is greater, plus costs and reasonable attorney’s fees. The “date of written demand” shall mean either the date upon which the written demand is personally delivered to the licensee or the date upon which the written demand is mailed to the licensee. A licensee may not be held liable in any action brought under this section for a violation of this article if the licensee shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error. If the borrower proceeds under this section he may not proceed under Section 10246 as to the same breach. (c) If a real estate licensee subject to the provisions of this article violates any provision of Section 10241.1 he shall be liable for, and pay over to the borrower, any commission or experience rating dividend attributable to the insurance written on that loan received by the licensee as a result of the sale of such insurance to the borrower in violation of Section 10241.1 in addition to any premium loss due to short rate cancellation of any insurance subject to Section 10248.1 which was purchased by the borrower. (d) No action for damages shall be maintained under this section unless brought within two years after the maturity of the loan. (e) The provisions of this article are not exclusive. The remedies provided for herein shall be in addition to any other procedures or remedies provided under law. (Added by Stats. 1973, Ch. 641.)
  125. 10248.3.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. )

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    This article applies only to certain loans that are made or negotiated by real estate brokers acting under the referenced sections.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 7. Real Property Loans [10240 - 10248.3] ( Article 7 added by Stats. 1961, Ch. 886. ) ## 10248.3. The provisions of this article shall apply only to those loans otherwise subject to this article which are made or negotiated by real estate brokers acting within the meaning of subdivision (d) of Section 10131 or subdivision (b) of Section 10240. (Amended by Stats. 1982, Ch. 886, Sec. 7.)
  126. 10249.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. )

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    A person who wants to sell or lease certain out-of-state subdivision interests in California must register the subdivision with the commissioner before doing so.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. ) ## 10249. (a) A person acting as a principal or agent who intends, in this state, to sell or lease or offer for sale or lease lots, parcels, or interests in a subdivision, as defined in Section 10249.1, situated outside of this state but within the United States, shall, prior to a sale, lease, or offer, register the subdivision with the commissioner. An application for registration shall be made on a form acceptable to the commissioner and include, together with a fee, a description of the offering, certification by the applicant that the subdivision is in compliance with all applicable requirements of the state or states wherein the project is located, evidence of this compliance, if applicable, and a consent to service as described in Section 10249.92. (b) The commissioner, within 10 days of receipt of an application of registration, shall provide the applicant with notice of the completion of the registration or a notice of deficiency. If the department does not provide a notice within 10 days, the registration shall be deemed complete. (Amended by Stats. 1996, Ch. 587, Sec. 8. Effective January 1, 1997.)
  127. 10249.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. )

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    This section defines “subdivision” for Section 10249.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. ) ## 10249.1. “Subdivision,” as used in Section 10249, includes all of the following: (a) Improved or unimproved land or lands divided or proposed to be divided for the purpose of sale or lease, whether immediate or future, into five or more lots or parcels. (b) Improved or unimproved land or lands in which, for the purpose of sale or lease, whether immediate or future, five or more undivided interests are created or proposed to be created. (c) “Subdivision,” as defined in Section 11004.5, excluding “subdivision” as defined in subdivision (e) of that section. (Amended by Stats. 1995, Ch. 723, Sec. 3.5. Effective January 1, 1996.)
  128. 10249.3.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. )

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    The commissioner may lower filing fees by regulation if they cover administrative costs, and must hold a yearly hearing. The department must report financial information, post 15 days’ notice, deposit fees into the Real Estate Fund, and treat fees as earned on receipt; fees are generally nonrefundable unless paid by mistake or inadvertence.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. ) ## 10249.3. (a) The commissioner may by regulation prescribe filing fees in connection with registrations with the department pursuant to the provisions of this article that are lower than the maximum fees specified in subdivision (b) if the commissioner determines that the lower fees are sufficient to offset the costs and expenses incurred in the administration of this article. The commissioner shall hold at least one hearing each calendar year to determine if lower fees than those specified in subdivision (b) should be prescribed. At this hearing, the department shall report on the financial status of the department, including the revenues, expenditures, and reserves as of the end of the previous fiscal year. The department shall post a hearing notice 15 days in advance of the hearing that includes the required information about the financial status of the department. (b) The filing fee for an application for a registration with the department pursuant to the provisions of this article shall be set at the amount prescribed below and shall not exceed the maximum specified for each subdivision or phase of the subdivision in which interests are to be offered for sale or lease: (1) An application for an original registration: One hundred dollars ($100), not to exceed one hundred thirty dollars ($130). (2) An application for a renewal registration: One hundred dollars ($100), not to exceed one hundred thirty dollars ($130). (3) An application for an amended registration: One hundred dollars ($100), not to exceed one hundred thirty dollars ($130). (c) All fees collected by the Department of Real Estate under authority of this article shall be deposited into the Real Estate Fund under Chapter 6 (commencing with Section 10450) of Part 1. All fees received by the department pursuant to the provisions of this article shall be deemed earned upon receipt. No part of any fee is refundable unless the commissioner determines that it was paid as a result of mistake or inadvertence. (Amended by Stats. 2024, Ch. 41, Sec. 14. (SB 164) Effective June 29, 2024.)
  129. 10249.8.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. )

    Verify source ↗

    A person in California may not sell, lease, or offer out-of-state subdivision interests unless specified materials include a required disclaimer.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. ) ## 10249.8. (a) Notwithstanding any provision to the contrary in Section 10249 or 11000, it is unlawful for a person, in this state, to sell or lease or offer for sale or lease lots, parcels, or interests in a subdivision, as defined in Section 10249.1, entirely located outside of this state but within the United States, unless any printed material, literature, advertising, or invitation in this state relating to that sale, lease, or offer clearly and conspicuously contains the following disclaimer in at least 10-point type: WARNING: THE CALIFORNIA DEPARTMENT OF REAL ESTATE HAS NOT INSPECTED, EXAMINED, OR QUALIFIED THIS OFFERING. (b) If an offer on property described in subdivision (a) is not initially made in writing, the disclaimer set forth in subdivision (c) shall be received by the offeree in writing prior to a visit to a location, sales presentation, or contact with a person representing the offeror, when the visit or contact was scheduled or arranged by the offeror or its representative. The deposit of the disclaimer in the United States mail, addressed to the offeree and with first-class postage prepaid, at least five days prior to the scheduled or arranged visit or contact, shall be deemed to constitute delivery for purposes of this section. (c) If a California resident is presented with an agreement or contract to lease or purchase any property described in subdivision (a), when an offer to lease or purchase that property was made to that resident in California, a copy of the disclaimer set forth in this subdivision shall be inserted in at least 10-point type at the top of the first page of that agreement or contract and shall be initialed by that California resident. WARNING: THE CALIFORNIA DEPARTMENT OF REAL ESTATE HAS NOT QUALIFIED, INSPECTED, OR EXAMINED THIS OFFERING, INCLUDING, BUT NOT LIMITED TO, THE CONDITION OF TITLE, THE STATUS OF BLANKET LIENS ON THE PROJECT (IF ANY), ARRANGEMENTS TO ASSURE PROJECT COMPLETION, ESCROW PRACTICES, CONTROL OVER PROJECT MANAGEMENT, RACIALLY DISCRIMINATORY PRACTICES (IF ANY), TERMS, CONDITIONS, AND PRICE OF THE OFFER, CONTROL OVER ANNUAL ASSESSMENTS (IF ANY), OR THE AVAILABILITY OF WATER, SERVICES, UTILITIES, OR IMPROVEMENTS. IT MAY BE ADVISABLE FOR YOU TO CONSULT AN ATTORNEY OR OTHER KNOWLEDGEABLE PROFESSIONAL WHO IS FAMILIAR WITH REAL ESTATE AND DEVELOPMENT LAW IN THE STATE WHERE THIS SUBDIVISION IS SITUATED. (Amended by Stats. 2021, Ch. 431, Sec. 26. (SB 800) Effective January 1, 2022.)
  130. 10249.9.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. )

    Verify source ↗

    A person may not sell, lease, or offer out-of-state subdivision property in California unless the required disclaimer appears in the related printed materials.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. ) ## 10249.9. (a) Notwithstanding any provision to the contrary in Section 10249 or 11000, it is unlawful for a person, in this state, to sell or lease or offer for sale or lease a lot, parcel, or interest in a subdivision, located outside the United States, unless the printed material, literature, advertising, or invitation in this state relating to that sale, lease, or offer clearly and conspicuously contains the following disclaimer in at least 10-point capital type: WARNING: THE CALIFORNIA DEPARTMENT OF REAL ESTATE HAS NOT EXAMINED THIS OFFERING, INCLUDING, BUT NOT LIMITED TO, THE CONDITION OF TITLE, THE STATUS OF BLANKET LIENS ON THE PROJECT (IF ANY), ARRANGEMENTS TO ASSURE PROJECT COMPLETION, ESCROW PRACTICES, CONTROL OVER PROJECT MANAGEMENT, RACIALLY DISCRIMINATORY PRACTICES (IF ANY), TERMS, CONDITIONS, AND PRICE OF THE OFFER, CONTROL OVER ANNUAL ASSESSMENTS (IF ANY), OR THE AVAILABILITY OF WATER, SERVICES, UTILITIES, OR IMPROVEMENTS. IT MAY BE ADVISABLE FOR YOU TO CONSULT AN ATTORNEY OR OTHER KNOWLEDGEABLE PROFESSIONAL WHO IS FAMILIAR WITH REAL ESTATE AND DEVELOPMENT LAW IN THE COUNTRY WHERE THIS SUBDIVISION IS SITUATED. (b) If an offer on property described in subdivision (a) is not initially made in writing, the foregoing disclaimer shall be received by the offeree in writing prior to a visit to a location, sales presentation, or contact with a person representing the offeror, when the visit or contact was scheduled or arranged by the offeror or its representative. The deposit of the disclaimer in the United States mail, addressed to the offeree and with first-class postage prepaid, at least five days prior to the scheduled or arranged visit or contact, shall be deemed to constitute delivery for purposes of this section. (c) If any California resident is presented with an agreement or contract to lease or purchase a property described in subdivision (a), when an offer to lease or purchase that property was made to that resident in California, a copy of the disclaimer set forth in subdivision (a) shall be inserted in at least 10-point type at the top of the first page of that agreement or contract and shall be initialed by that California resident. (Amended by Stats. 2021, Ch. 431, Sec. 27. (SB 800) Effective January 1, 2022.)
  131. 10249.91.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. )

    Verify source ↗

    A registration issued under this article lasts one year, unless the commissioner sets a longer term by regulation.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. ) ## 10249.91. The term of a registration issued pursuant to this article shall be one year, unless the commissioner by regulation prescribes a longer term. (Amended by Stats. 1995, Ch. 723, Sec. 12. Effective January 1, 1996.)
  132. 10249.92.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. )

    Verify source ↗

    A registration application under this article must include an irrevocable consent, and if personal service on the applicant cannot be made with due diligence, service may be made by delivering process to the Secretary of State.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. ) ## 10249.92. A registration application pursuant to the provisions of this article shall be accompanied by an irrevocable consent stating that if in any action commenced against the applicant in this state personal service of process upon the applicant cannot be made after the exercise of due diligence, a valid service may thereupon be made upon the applicant by delivering the process to the Secretary of State. Insofar as possible, the provisions of Section 1018 of the Code of Civil Procedure relating to service of process on the Secretary of State are applicable to this section. (Amended by Stats. 1995, Ch. 723, Sec. 13. Effective January 1, 1996.)
  133. 10249.93.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. )

    Verify source ↗

    The commissioner may order a person to stop a violation, and the person must immediately stop the ordered activity. The person may also request a hearing.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 3. Real Estate Regulations [10130 - 10249.93] ( Chapter 3 added by Stats. 1943, Ch. 127. ) ## ARTICLE 8. Out-of-State Land Promotions [10249 - 10249.93] ( Article 8 added by Stats, 1963, Ch. 1819. ) ## 10249.93. (a) If the commissioner finds, based on available evidence, that a person is violating any provision of this article or a regulation of the commissioner adopted to implement a provision of this article, the commissioner may order the person to cease and desist from committing the violation or to cease and desist from the further sale or lease of an interest in the subdivision until the violation is corrected. (b) A person to whom an order is directed shall, upon receipt of the order, immediately cease the activity described in the order. (c) The person to whom the order is directed may request a hearing in accordance with subdivision (c) of Section 11019. (Added by Stats. 1996, Ch. 587, Sec. 9. Effective January 1, 1997.)
  134. 103.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. )

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    Certain board, commission, and committee members may receive specified payments, including a $100 per diem for each day of official duty, with reimbursement for necessary travel and other expenses. Public officers and employees cannot receive this per diem on days they are also paid for their regular public employment.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. ) ## 103. Each member of a board, commission, or committee created in the various chapters of Division 2 (commencing with Section 500) and Division 3 (commencing with Section 5000), and in Chapter 2 (commencing with Section 18600) and Chapter 3 (commencing with Section 19000) of Division 8, shall receive the moneys specified in this section when authorized by the respective provisions. Each such member shall receive a per diem of one hundred dollars ($100) for each day actually spent in the discharge of official duties, and shall be reimbursed for traveling and other expenses necessarily incurred in the performance of official duties. The payments in each instance shall be made only from the fund from which the expenses of the agency are paid and shall be subject to the availability of money. Notwithstanding any other provision of law, no public officer or employee shall receive per diem salary compensation for serving on those boards, commissions, or committees on any day when the officer or employee also received compensation for the officer or employee’s regular public employment. (Amended by Stats. 2019, Ch. 351, Sec. 11. (AB 496) Effective January 1, 2020.)
  135. 104.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. )

    Verify source ↗

    Certain health-related boards or regulatory entities may adopt regulations requiring licensees to display licenses or registrations where they treat patients and to tell patients which agency to contact with questions or complaints.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. ) ## 104. All boards or other regulatory entities within the department’s jurisdiction that the department determines to be health-related may adopt regulations to require licensees to display their licenses or registrations in the locality in which they are treating patients, and to inform patients as to the identity of the regulatory agency they may contact if they have any questions or complaints regarding the licensee. In complying with this requirement, those boards may take into consideration the particular settings in which licensees practice, or other circumstances which may make the displaying or providing of information to the consumer extremely difficult for the licensee in their particular type of practice. (Added by Stats. 1998, Ch. 991, Sec. 1. Effective January 1, 1999.)
  136. 10450.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 1. Real Estate Fund [10450 - 10454] ( Article 1 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    The commissioner must pay the covered fees into the State Treasury for the Real Estate Fund at least monthly, with a detailed statement.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 1. Real Estate Fund [10450 - 10454] ( Article 1 added by Stats. 1943, Ch. 127. ) ## 10450. All fees charged and collected under this part and under Chapter 1 of Part 2, except as provided in this chapter, shall be paid by the commissioner at least once a month, accompanied by a detailed statement thereof, into the Treasury of the State to the credit of the Real Estate Fund, which fund is continued in existence. (Amended by Stats. 1956, Ch. 4.)
  137. 10450.6.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 1. Real Estate Fund [10450 - 10454] ( Article 1 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    The section creates two accounts in the Real Estate Fund and sets how license fees are credited to them.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 1. Real Estate Fund [10450 - 10454] ( Article 1 added by Stats. 1943, Ch. 127. ) ## 10450.6. There shall be separate accounts in the Real Estate Fund for purposes of real estate education and research and for purposes of recovery which shall be known respectively as the Education and Research Account and the Consumer Recovery Account. The commissioner may, by regulation, require that up to 8 percent, or any lesser amount that he or she deems appropriate, of the amount of any license fee collected under this part be credited to the Education and Research Account. Twelve percent of the amount of any license fee collected shall be credited to the Consumer Recovery Account, provided, however, that if as of June 30 of any fiscal year the balance of funds in the Consumer Recovery Account is at least three million five hundred thousand dollars ($3,500,000), all funds in excess of this amount which have been credited to the Consumer Recovery Account shall instead be credited to the Real Estate Fund. As long as the balance of funds in the Consumer Recovery Account exceeds three million five hundred thousand dollars ($3,500,000), all license fees collected, except for the percentage of license fees credited to the Education and Research Account, shall be credited to the Real Estate Fund. Funds in the Education and Research Account shall be used by the commissioner in accordance with Section 10451.5. The Consumer Recovery Account is continuously appropriated for carrying out Chapter 6.5 (commencing with Section 10470). As used in this part or any other provision of law, “Recovery Account” shall be deemed to refer to the Consumer Recovery Account. (Amended by Stats. 2011, Ch. 712, Sec. 15. (SB 706) Effective January 1, 2012.)
  138. 10451.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 1. Real Estate Fund [10450 - 10454] ( Article 1 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    Money credited to the Real Estate Fund may be used by the commissioner for the listed statutory purposes, including salaries.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 1. Real Estate Fund [10450 - 10454] ( Article 1 added by Stats. 1943, Ch. 127. ) ## 10451. All money paid into the State Treasury and credited to the Real Estate Fund is hereby appropriated to be used by the commissioner in carrying out the provisions of this part and Chapter 1 of Part 2, including the payment of the salaries of the commissioner and his deputies, clerks and assistants. The money credited to the fund shall remain therein. (Added by Stats. 1943, Ch. 127.)
  139. 10451.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 1. Real Estate Fund [10450 - 10454] ( Article 1 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    The Real Estate Commissioner may move money between the Education and Research Account and the Real Estate Fund when the stated balance conditions are met.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 1. Real Estate Fund [10450 - 10454] ( Article 1 added by Stats. 1943, Ch. 127. ) ## 10451.5. (a) All money paid into the State Treasury and credited to the Education and Research Account in the Real Estate Fund pursuant to Section 10450.6 is available for appropriation by the Legislature to be used by the commissioner in carrying out the provisions of this part and Chapter 1 (commencing with Section 11000) of Part 2, in the advancement of education and research in real estate at the University of California, state colleges and community colleges, or in contracting for a particular research project in the field of real estate for the state with any university in the State of California accredited by the Western Association of Schools and Colleges, or with any corporation or association qualified to perform such research. (b) If the balance in the Education and Research Account is more than four hundred thousand dollars ($400,000), the Real Estate Commissioner may authorize the transfer of all or part of such surplus amount to the Real Estate Fund and may authorize the return to the Education and Research Account of all or part of any amount previously transferred to the Real Estate Fund. (c) Notwithstanding the provisions of subdivision (b), if at any time the amount of funds credited to the Real Estate Fund, including any amounts credited to the separate accounts for Education and Research and Recovery, is less than 25 percent of the department’s authorized expenditures for the following fiscal year, the commissioner may transfer any or all of the funds credited to the Education and Research Account to the Real Estate Fund. The commissioner may authorize the return to the Education and Research Account of all or part of any amount previously transferred to the Real Estate Fund. (Amended by Stats. 1993, Ch. 416, Sec. 14. Effective January 1, 1994.)
  140. 10452.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 1. Real Estate Fund [10450 - 10454] ( Article 1 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    The Controller must draw warrants on the respective funds for amounts spent under the commissioner’s direction, and the Treasurer must pay them.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 1. Real Estate Fund [10450 - 10454] ( Article 1 added by Stats. 1943, Ch. 127. ) ## 10452. The Controller shall draw his warrant on the respective funds from time to time in favor of the commissioner for the amounts expended under his direction, and the Treasurer shall pay the same. (Amended by Stats. 1956, Ch. 4.)
  141. 10453.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 1. Real Estate Fund [10450 - 10454] ( Article 1 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    The commissioner’s expenditures, including salary, must be paid only from the Real Estate Fund unless this chapter provides otherwise.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 1. Real Estate Fund [10450 - 10454] ( Article 1 added by Stats. 1943, Ch. 127. ) ## 10453. All of the expenditures of the commissioner, including his salary, shall be paid only from the Real Estate Fund except as otherwise provided in this chapter. (Amended by Stats. 1956, Ch. 4.)
  142. 10454.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 1. Real Estate Fund [10450 - 10454] ( Article 1 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    The commissioner may withdraw money from the Real Estate Fund as a revolving fund with the Department of Finance’s consent, and must account for the withdrawn sum when the Department of Finance demands it.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 1. Real Estate Fund [10450 - 10454] ( Article 1 added by Stats. 1943, Ch. 127. ) ## 10454. The commissioner may, with the consent of the Department of Finance, withdraw from the Real Estate Fund moneys to be used as a revolving fund where cash advances are necessary. The commissioner shall account for the sum withdrawn from the revolving fund at any time upon demand of the Department of Finance. (Amended by Stats. 1949, Ch. 1011.)
  143. 10460.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2. Exemption from Fees [10460 - 10464] ( Article 2 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    This section defines “military licensee,” “persons in the military service of the United States,” and “military service.”

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2. Exemption from Fees [10460 - 10464] ( Article 2 added by Stats. 1943, Ch. 127. ) ## 10460. As used in this article: (a) “Military licensee” refers to a person who, while holding a license or license endorsement under the Real Estate Law, or any of the statutes codified therein, entered the military service of the United States and notifies the commissioner of that fact within six months of such entry. (b) “Persons in the military service of the United States” includes the following persons and no others: all members of the United States Army, the United States Navy, the United States Air Force, the Marine Corps, the Merchant Marine in time of war, the Coast Guard, the National Guard, and all officers of the Public Health Service detailed by proper authority for duty either with the Army or the Navy. (c) “Military service” signifies federal service after October 1, 1940, on active duty with any branch of service heretofore referred to or mentioned as well as training or education under the supervision of the United States preliminary to induction into the military service. The terms “active service” or “active duty” include the period during which a person in military service is absent from duty on account of sickness, wounds, leave, or other lawful cause. (Amended by Stats. 2012, Ch. 380, Sec. 7. (SB 875) Effective January 1, 2013.)
  144. 10461.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2. Exemption from Fees [10460 - 10464] ( Article 2 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    A military licensee does not have to renew the covered licenses until the earlier of resuming business or one year after military service ends.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2. Exemption from Fees [10460 - 10464] ( Article 2 added by Stats. 1943, Ch. 127. ) ## 10461. A military licensee shall not be required to renew his or her license or license endorsement under this part, or his or her license under Chapter 19 of Division 3, until the beginning of the license or license endorsement period which first commences (a) after his or her again engaging in business, or (b) after one year following termination of military service, whichever is the earlier. (Amended by Stats. 2012, Ch. 380, Sec. 8. (SB 875) Effective January 1, 2013.)
  145. 10462.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2. Exemption from Fees [10460 - 10464] ( Article 2 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    A military licensee loses the article’s privileges if they get a dishonorable discharge or stay in the military more than seven years after notice to the commissioner.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2. Exemption from Fees [10460 - 10464] ( Article 2 added by Stats. 1943, Ch. 127. ) ## 10462. A military licensee shall not be entitled to the privileges of this article if he receives a dishonorable discharge from the military service of the United States or if he voluntarily remains in the military service for more than seven years from the date of notification to the commissioner as provided by subdivision (a) of Section 10460. (Amended by Stats. 1972, Ch. 354.)
  146. 10463.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2. Exemption from Fees [10460 - 10464] ( Article 2 added by Stats. 1943, Ch. 127. )

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    Some military licensees may apply for reinstatement after failing to notify the commissioner of military service entry, and the commissioner must reinstate them if the stated conditions are met.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2. Exemption from Fees [10460 - 10464] ( Article 2 added by Stats. 1943, Ch. 127. ) ## 10463. A person who would qualify as a military licensee except for the failure to notify the commissioner of his or her entry into the military service of the United States may apply to the commissioner for reinstatement of his or her license or license endorsement upon resuming business or within one year following termination of military service, whichever is earlier. The commissioner shall reinstate the applicant if he or she finds that the applicant would be entitled to the privileges of this article except for his or her failure to give the commissioner notice of his or her entry into the military service of the United States and that the applicant has complied with Article 2.5 (commencing with Section 10170). In the event the applicant failed to notify the commissioner of his or her entry into the military service as provided, he or she shall be required to submit proof of his or her previous licensure or license endorsement within seven years of the date of entry into the military service to permit reinstatement of his or her license or license endorsement. (Amended by Stats. 2012, Ch. 380, Sec. 9. (SB 875) Effective January 1, 2013.)
  147. 10464.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2. Exemption from Fees [10460 - 10464] ( Article 2 added by Stats. 1943, Ch. 127. )

    Verify source ↗

    Section 114 of the code does not apply to this part.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6. Revenue [10450 - 10464] ( Chapter 6 added by Stats. 1943, Ch. 127. ) ## ARTICLE 2. Exemption from Fees [10460 - 10464] ( Article 2 added by Stats. 1943, Ch. 127. ) ## 10464. Section 114 of this code does not apply to this part. (Added by Stats. 1953, Ch. 225.)
  148. 10470.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    If the Consumer Recovery Account falls below $200,000 on June 30, certain licensees must pay extra fees when obtaining or renewing licenses for a limited period.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10470. If, on June 30 of any year, the balance remaining in the Consumer Recovery Account in the Real Estate Fund is less than two hundred thousand dollars ($200,000), every licensed broker, when obtaining or renewing any broker license within four years thereafter, shall pay, in addition to the license fee, a fee of seven dollars ($7); every licensed salesperson, when obtaining or renewing such license within four years thereafter, shall pay, in addition to the license fee, a fee of four dollars ($4); and every person holding a prepaid rental listing service license, when obtaining or renewing that license within two years thereafter, shall pay, in addition to the application fee, a fee of one dollar ($1). The fees from the broker, salesperson, and prepaid rental listing service licensees shall be paid into the State Treasury and credited to the Consumer Recovery Account. (Amended by Stats. 2013, Ch. 436, Sec. 6. (SB 269) Effective January 1, 2014.)
  149. 10470.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    The Real Estate Commissioner may move money between the Real Estate Fund and the Consumer Recovery Account under specified conditions.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10470.1. (a) In addition to the amount paid into the Consumer Recovery Account as set forth in Section 10450.6, the Real Estate Commissioner may authorize the transfer from the Real Estate Fund to the Consumer Recovery Account of any amounts as are deemed necessary. (b) If the balance remaining in the Consumer Recovery Account contains more than four hundred thousand dollars ($400,000), the commissioner may authorize the transfer of all or part of the surplus amount into the Real Estate Fund. (c) The commissioner may authorize the return to the Consumer Recovery Account of all or any amount previously transferred to the Real Estate Fund under this section. (Amended by Stats. 2011, Ch. 712, Sec. 17. (SB 706) Effective January 1, 2012.)
  150. 10471.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    An aggrieved person may apply to the Department of Real Estate for payment from the Consumer Recovery Account after a qualifying judgment becomes final, but the application must be filed within one year and must include specified information and statements.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10471. (a) When an aggrieved person obtains (1) a final judgment in a court of competent jurisdiction, including, but not limited to, a criminal restitution order issued pursuant to subdivision (f) of Section 1202.4 of the Penal Code or Section 3663 of Title 18 of the United States Code, or (2) an arbitration award that includes findings of fact and conclusions of law rendered in accordance with the rules established by the American Arbitration Association or another recognized arbitration body, and in accordance with Sections 1281 to 1294.2, inclusive, of the Code of Civil Procedure when applicable, and when the arbitration award has been confirmed and reduced to judgment pursuant to Section 1287.4 of the Code of Civil Procedure, against a defendant based upon the defendant’s fraud, misrepresentation, or deceit, made with intent to defraud, or conversion of trust funds, arising directly out of any transaction in which the defendant, while licensed under this part, performed acts for which a real estate license or a prepaid rental listing service license was required, the aggrieved person may, upon the judgment becoming final, file an application with the Department of Real Estate for payment from the Consumer Recovery Account, within the limitations specified in Section 10474, of the amount unpaid on the judgment that represents an actual and direct loss to the claimant in the transaction. As used in this chapter, “court of competent jurisdiction” includes the federal courts, but does not include the courts of another state. (b) The application shall be delivered in person, by certified mail, or electronically in a manner prescribed by the department, to an office of the department not later than one year after the judgment has become final. (c) The application shall be made on a form prescribed by the department, verified by the claimant, and shall include the following: (1) The name and address of the claimant. (2) If the claimant is represented by an attorney, the name, business address, and telephone number of the attorney. (3) The identification of the judgment, the amount of the claim and an explanation of its computation. (4) A detailed narrative statement of the facts in explanation of the allegations of the complaint upon which the underlying judgment is based. (5) (A) Except as provided in subparagraph (B), a statement by the claimant, signed under penalty of perjury, that the complaint upon which the underlying judgment is based was prosecuted conscientiously and in good faith. As used in this section, “conscientiously and in good faith” means that no party potentially liable to the claimant in the underlying transaction was intentionally and without good cause omitted from the complaint, that no party named in the complaint who otherwise reasonably appeared capable of responding in damages was dismissed from the complaint intentionally and without good cause, and that the claimant employed no other procedural means contrary to the diligent prosecution of the complaint in order to seek to qualify for the Consumer Recovery Account. (B) For the purpose of an application based on a criminal restitution order, all of the following statements by the claimant: (i) The claimant has not intentionally and without good cause failed to pursue any person potentially liable to the claimant in the underlying transaction other than a defendant who is the subject of a criminal restitution order. (ii) The claimant has not intentionally and without good cause failed to pursue in a civil action for damages all persons potentially liable to the claimant in the underlying transaction who otherwise reasonably appeared capable of responding in damages other than a defendant who is the subject of a criminal restitution order. (iii) The claimant employed no other procedural means contrary to the diligent prosecution of the complaint in order to seek to qualify for the Consumer Recovery Account. (6) The name and address of the judgment debtor or, if not known, the names and addresses of persons who may know the judgment debtor’s present whereabouts. (7) The following representations and information from the claimant: (A) That the claimant is not a spouse of the judgment debtor nor a personal representative of the spouse. (B) That the claimant has complied with all of the requirements of this chapter. (C) That the judgment underlying the claim meets the requirements of subdivision (a). (D) A description of searches and inquiries conducted by or on behalf of the claimant with respect to the judgment debtor’s assets liable to be sold or applied to satisfaction of the judgment, an itemized valuation of the assets discovered, and the results of actions by the claimant to have the assets applied to satisfaction of the judgment. (E) That the claimant has diligently pursued collection efforts against all judgment debtors and all other persons liable to the claimant in the transaction that is the basis for the underlying judgment. (F) That the underlying judgment and debt have not been discharged in bankruptcy, or, in the case of a bankruptcy proceeding that is open at or after the time of the filing of the application, that the judgment and debt have been declared to be nondischargeable. (G) That the application was submitted to the department, as prescribed in subdivision (b), no later than one year after the underlying judgment became final. (d) If the claimant is basing the application upon a judgment against a salesperson, and the claimant has not obtained a judgment against that salesperson’s employing broker, if any, or has not diligently pursued the assets of that broker, the application shall be denied for failure to diligently pursue the assets of all other persons liable to the claimant in the transaction unless the claimant can demonstrate, by clear and convincing evidence, either that the salesperson was not employed by a broker at the time of the transaction, or that the salesperson’s employing broker would not have been liable to the claimant because the salesperson was acting outside the scope of their employment by the broker in the transaction. (e) The application form shall include detailed instructions with respect to documentary evidence, pleadings, court rulings, the products of discovery in the underlying litigation, and a notice to the applicant of their obligation to protect the underlying judgment from discharge in bankruptcy, to be appended to the application. (f) An application for payment from the Consumer Recovery Account that is based on a criminal restitution order shall comply with all of the requirements of this chapter. For the purpose of an application based on a criminal restitution order, the following terms have the following meanings: (1) “Judgment” means the criminal restitution order. (2) “Complaint” means the facts of the underlying transaction upon which the criminal restitution order is based. (3) “Judgment debtor” means any defendant who is the subject of the criminal restitution order. (Amended by Stats. 2023, Ch. 510, Sec. 90. (SB 887) Effective January 1, 2024.)
  151. 10471.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    This section requires a claimant to serve the judgment debtor with notice and the application, and it sets response deadlines and service methods.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10471.1. (a) The claimant shall serve a copy of the notice prescribed in subdivision (e) together with a copy of the application upon the judgment debtor by personal service, by certified mail, or by publication, as set forth in subdivision (b). (b) If the judgment debtor holds an unexpired and unrevoked license issued by the department, service of the notice and a copy of the application may be made by certified mail addressed to the judgment debtor at the latest business or residence address on file with the department. If the judgment debtor does not hold an unexpired and unrevoked license issued by the department and personal service cannot be effected through the exercise of reasonable diligence, the claimant shall serve the judgment debtor by one publication of the notice in each of two successive weeks in a newspaper of general circulation published in the county in which the judgment debtor was last known to reside. (c) If the application is served upon the judgment debtor by certified mail, service is complete five days after mailing if the place of address is within the State of California, 10 days after mailing if the place of address is outside the State of California but within the United States, and 20 days after mailing if the place of address is outside the United States. Personal service is complete on the date of service. Service by publication is complete upon completion of the second week of publication. (d) If a judgment debtor wishes to contest payment of an application by the commissioner, the debtor shall mail or deliver a written response to the application addressed to the department at its headquarters office within 30 days after service of the notice and application, and shall mail or deliver a copy of the response to the claimant. If a judgment debtor fails to mail or deliver a timely response, the debtor shall have waived their right to present objections to payment. (e) The notice served upon the judgment debtor shall include the following statement: “NOTICE: Based upon a judgment entered against you in favor of (name of claimant), application for payment from the Consumer Recovery Account of the Real Estate Fund is being made to the Department of Real Estate. “If payment is made from the Consumer Recovery Account on an application where the final judgment was established by clear and convincing evidence or the Real Estate Commissioner determined that the claimant provided clear and convincing evidence of the judgment debtor’s fraud, misrepresentation, deceit, or conversion of trust funds, all licenses and license rights that you have under the Real Estate Law will be automatically suspended on the date of payment and cannot be reinstated until the Consumer Recovery Account has been reimbursed for the amount paid plus interest at the prevailing rate. “If you wish to contest payment by the Real Estate Commissioner, you must file a written response to the application addressed to the Department of Real Estate at ___________ within 30 days after mailing, delivery, or publication of this notice and mail or deliver a copy of that response to the claimant. If you fail to do so, you will have waived your right to present your objections to payment.” (f) If a judgment debtor fails to mail or deliver a written response to the application with the department within 30 days after personal service, mailing, or final publication of the notice, the judgment debtor shall not thereafter be entitled to notice of any action taken or proposed to be taken by the commissioner with respect to the application. (Amended by Stats. 2025, Ch. 786, Sec. 25. (SB 774) Effective January 1, 2026.)
  152. 10471.2.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    If an application does not substantially comply, the commissioner must send the claimant an itemized list of deficiencies within 15 days. If there is a dispute about whether the application is substantially complete, the claimant may immediately file the claim with the court.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10471.2. (a) If the commissioner determines that the application as submitted by the claimant fails to comply substantially with the requirements of Section 10471 or with the requirements of a regulation adopted by the commissioner under authority of Section 10080, the commissioner shall, within 15 days after receipt of the application, mail an itemized list of deficiencies to the claimant. (b) The time within which the commissioner is required to act under Section 10471.3 shall be measured from the date of receipt by the department of an application that is substantially complete. In the event of an irreconcilable dispute between the claimant and the commissioner on the question of whether the application is substantially complete, the claimant may immediately file the claim with the court pursuant to Section 10472. (Added by Stats. 1985, Ch. 690, Sec. 3. Operative January 1, 1987, by Sec. 5 of Ch. 690.)
  153. 10471.3.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    The commissioner must issue a final written decision on an application within 90 days after a completed application is received, unless the claimant agrees in writing to extend the time.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10471.3. (a) The commissioner shall render a final written decision on the application within 90 days after a completed application has been received unless the claimant agrees in writing to extend the time within which the commissioner may render a decision. (b) The commissioner may deny or grant the application or may enter into a compromise with the claimant to pay less in settlement than the full amount of the claim. If the claimant refuses to accept a settlement of the claim offered by the commissioner, the written decision of the commissioner shall be to deny the claim or it shall be deemed denied if a written decision is not rendered within the time specified in subdivision (a). Evidence of settlement offers and discussions between the commissioner and the claimant shall not be competent evidence in judicial proceedings undertaken by the claimant pursuant to Section 10472. (Amended by Stats. 2011, Ch. 712, Sec. 20. (SB 706) Effective January 1, 2012.)
  154. 10471.4.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    The department must use appropriate investigation and discovery methods when considering and investigating an application, and the commissioner may grant payment if the final judgment meets Section 10471 and is proved by the required standard of evidence.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10471.4. (a) In its consideration and investigation of an application, the department shall have recourse to all appropriate means of investigation and discovery available to it under Article 2 (commencing with Section 11180) of Chapter 2 of Part 1 of Division 3 of Title 2 of the Government Code. (b) The commissioner may grant payment on an application if the final judgment satisfies the requirements of Section 10471 and was established by proof by preponderance of the evidence, or a higher standard of proof. (Amended by Stats. 2025, Ch. 786, Sec. 26. (SB 774) Effective January 1, 2026.)
  155. 10471.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    The commissioner must notify the claimant and certain judgment debtors about the decision on an application. If the application is denied, the claimant must file in superior court within 6 months if they want to continue. If a payment and license suspension are ordered, the judgment debtor must repay the Consumer Recovery Account before reinstatement.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10471.5. (a) The commissioner shall give notice of a decision rendered with respect to the application to the claimant and to a judgment debtor who has filed a timely response to the application in accordance with Section 10471.1. (b) If the application is denied, the notice to the claimant and judgment debtor shall include the following: “Claimant’s application has been denied. If the claimant wishes to pursue the application in court, the claimant must file the application as follows in a superior court of this state not later than six months after receipt of this notice, pursuant to Section 10472 of the Business and Professions Code. If the underlying judgment is a California state court judgment, the application shall be filed in the court in which the underlying judgment was entered. If the underlying judgment is a federal court judgment, the application shall be filed in the superior court of any county within California that would have been a proper venue if the underlying lawsuit had been filed in a California state court, or in the Superior Court of the County of Sacramento.” (c) If the decision of the commissioner is to make a payment to the claimant out of the Consumer Recovery Account, the following notice shall be given to the judgment debtor along with a copy of the decision of the commissioner: “The decision of the Real Estate Commissioner on the application of ____ is to pay $____ from the Consumer Recovery Account. A copy of that decision is enclosed.” (d) If the decision of the commissioner is to make a payment to the claimant out of the Consumer Recovery Account and to suspend the license of the judgment debtor, the following notice shall be given to the judgment debtor along with a copy of the decision of the commissioner: “The decision of the Real Estate Commissioner on the application of ____is to pay $____ from the Consumer Recovery Account. A copy of that decision is enclosed. “Pursuant to Section 10475 of the Business and Professions Code, all of your licenses and license rights under the Real Estate Law will be suspended effective on the date of the payment, and you will not be eligible for reinstatement of any license issued under authority of the Real Estate Law until you have reimbursed the Consumer Recovery Account for this payment plus interest at the prevailing legal rate. “If you desire a judicial review of the suspension of your licenses and license rights, you may petition the superior court for a writ of mandamus. If the underlying judgment is a California state court judgment, the petition shall be filed in the court in which the judgment was entered. If the underlying judgment is a federal court judgment, the petition shall be filed in the superior court of any county within California that would have been a proper venue if the underlying lawsuit had been filed in a California state court, or in the Superior Court of the County of Sacramento. To be timely, the petition must be filed with the court within 30 days of receipt of this notice.” (Amended by Stats. 2025, Ch. 786, Sec. 27. (SB 774) Effective January 1, 2026.)
  156. 10471.6.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    If the commissioner preliminarily finds that valid claims are likely to exceed the liability limits, the commissioner must start a proration proceeding instead of continuing administrative proceedings.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10471.6. If, at any time prior to the rendering of a decision on an application, the commissioner makes a preliminary determination that the aggregate valid applications of all aggrieved persons against that licensee are likely to exceed the limits of liability in Section 10474, the commissioner shall, in lieu of further administrative proceedings, initiate a proration proceeding pursuant to Section 10474.5 in a superior court of any county in this state that would be a proper court for the filing of a denied application or writ of mandamus pursuant to Section 10471.5. (Amended by Stats. 2001, Ch. 389, Sec. 7. Effective January 1, 2002.)
  157. 10472.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    A claimant whose recovery-account application was denied may file a verified application in superior court within six months, then serve the commissioner and judgment debtor and file proof of service.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10472. (a) A claimant against whom the commissioner has rendered a decision denying an application pursuant to Section 10471 may, within six months after the mailing of the notice of the denial, file a verified application in superior court for an Order Directing Payment Out of the Consumer Recovery Account based upon the grounds set forth in the application to the commissioner. If the underlying judgment is a California state court judgment, the application shall be filed in the court in which the underlying judgment was entered. If the underlying judgment is a federal court judgment, the application shall be filed in the superior court of any county within California that would have been a proper venue if the underlying lawsuit had been filed in a California state court, or in the Superior Court of the County of Sacramento. (b) A copy of the verified application shall be served upon the commissioner and upon the judgment debtor. A certificate or affidavit of service shall be filed by the claimant with the court. Service on the commissioner may be made by certified mail addressed to the headquarters office of the bureau. Service upon a judgment debtor may be made in accordance with Section 10471.1. The notice served upon the judgment debtor shall read as follows: “NOTICE: An application has been filed with the court for a payment from the Consumer Recovery Account that was previously denied by the Real Estate Commissioner. “If the Department of Real Estate makes a payment from the Consumer Recovery Account pursuant to a court order, all of your licenses and license rights under the Real Estate Law may be suspended until the Consumer Recovery Account has been reimbursed for the amount paid plus interest at the prevailing rate. “If you wish to defend in court against this application, you must file a written response with the court within 30 days after having been served with a copy of the application. If you do not file a written response, you will have waived your right to defend against the application.” (Amended by Stats. 2025, Ch. 786, Sec. 28. (SB 774) Effective January 1, 2026.)
  158. 10472.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    The commissioner and the judgment debtor each have 30 days after service to file a written response; the court must then set a hearing, may continue it for good cause, and the claimant must prove compliance with Section 10471.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10472.1. (a) The commissioner and the judgment debtor shall each have 30 days after being served with the application in which to file a written response. The court shall thereafter set the matter for hearing upon the petition of the claimant. The court shall grant a request of the commissioner for a continuance of as much as 30 days and may, upon a showing of good cause by any party, continue the hearing as the court deems appropriate. (b) The claimant shall have the burden of proving compliance with the requirements of Section 10471 by competent evidence at an evidentiary hearing. The claimant shall be entitled to a de novo review of the merits of the application as contained in the administrative record. (c) If the judgment debtor fails to file a written response to the application, the application may be compromised or settled by the commissioner at any time during the court proceedings and the court shall, upon joint petition of the claimant and the commissioner, issue an order directing payment out of the Consumer Recovery Account. (Amended by Stats. 2011, Ch. 712, Sec. 23. (SB 706) Effective January 1, 2012.)
  159. 10473.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    The court may pay money from the Consumer Recovery Account only if the claimant has a valid Section 10471 cause of action and complied with Section 10472. The commissioner may defend, seek dismissal, and compromise claims, but must give at least 10 days’ written notice before a dismissal motion.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10473. Whenever the court proceeds upon an application under Section 10472, it shall order payment out of the Consumer Recovery Account only upon a determination that the aggrieved party has a valid cause of action within the purview of Section 10471, and has complied with Section 10472. The commissioner may defend any such action on behalf of the Consumer Recovery Account and shall have recourse to all appropriate means of defense and review, including examination of witnesses and the right to relitigate any issues material and relevant in the proceeding against the Consumer Recovery Account which were determined in the underlying action on which the judgment in favor of the applicant was based. If the judgment in favor of the applicant was by default, stipulation, consent, or pursuant to Section 594 of the Code of Civil Procedure, or whenever the action against the licensee was defended by a trustee in bankruptcy, the applicant shall have the burden of proving that the cause of action against the licensee was for fraud, misrepresentation, deceit, or conversion of trust funds. Otherwise, the judgment shall create a rebuttable presumption of the fraud, misrepresentation, deceit, or conversion of trust funds by the licensee, which presumption shall affect the burden of producing evidence. The commissioner may move the court at any time to dismiss the application when it appears there are no triable issues and the petition is without merit. The motion may be supported by affidavit of any person or persons having knowledge of the facts, and may be made on the basis that the petition, and the judgment referred to therein, does not form the basis for a meritorious recovery claim within the purview of Section 10471; provided, however, the commissioner shall give written notice at least 10 days before the motion. The commissioner may, subject to court approval, compromise a claim based upon the application of an aggrieved party. The commissioner shall not be bound by any compromise or stipulation of the judgment debtor. (Amended by Stats. 2011, Ch. 712, Sec. 24. (SB 706) Effective January 1, 2012.)
  160. 10473.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    A judgment debtor may defend an action against the Consumer Recovery Account and is entitled to use appropriate defense and review tools, including examining witnesses.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10473.1. The judgment debtor may defend an action against the Consumer Recovery Account on their own behalf and shall have recourse to all appropriate means of defense and review, including examination of witnesses. All matters, including, but not limited to, the issues of fraud, misrepresentation, deceit, or conversion of trust funds, finally adjudicated in the underlying action are conclusive as to the judgment debtor and the applicant in the proceeding against the Consumer Recovery Account, if the final judgment was established by proof by clear and convincing evidence or the commissioner determined that the applicant provided clear and convincing evidence of the judgment debtor’s fraud, misrepresentation, deceit, or conversion of trust funds. (Amended by Stats. 2025, Ch. 786, Sec. 29. (SB 774) Effective January 1, 2026.)
  161. 10474.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    This section caps how much the Consumer Recovery Account can be liable for, with different dollar limits depending on the date and the type of claim. It also allows a claimant in certain multi-licensee transactions to seek recovery from the Account, subject to other limits.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10474. Notwithstanding any other provision of this chapter and regardless of the number of persons aggrieved or parcels of real estate involved in a transaction or the number of judgments against a licensee, the liability of the Consumer Recovery Account shall not exceed the following amounts: (a) Except as provided in subdivision (b), causes of action which occurred on or after January 1, 1980, twenty thousand dollars ($20,000) for any one transaction and one hundred thousand dollars ($100,000) for any one licensee. (b) For applications for payment from the Consumer Recovery Account filed on or after January 1, 2009, fifty thousand dollars ($50,000) for any one transaction and two hundred fifty thousand dollars ($250,000) for any one licensee. (c) When multiple licensed real estate personnel are involved in a transaction and the individual conduct of two or more of the licensees results in a judgment meeting the requirements of subdivision (a) of Section 10471, the claimant may seek recovery from the Consumer Recovery Account based on the judgment against any of the licensed real estate personnel, subject to the limitations of this section and subparagraph (E) of paragraph (7) of subdivision (c) of Section 10471. (Amended by Stats. 2011, Ch. 712, Sec. 26. (SB 706) Effective January 1, 2012.)
  162. 10474.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    If the Consumer Recovery Account is not enough to pay valid claims in full, the court must distribute the money fairly among claimants, and it may order all claimants and prospective claimants against one licensee to be joined in one action.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10474.5. If the amount of liability of the Consumer Recovery Account as provided for in Section 10474 is insufficient to pay in full the valid claims of all aggrieved persons by whom claims have been filed against any one licensee, the amount shall be distributed among them in the ratio that their respective claims bear to the aggregate of the valid claims, or in any other manner as the court deems equitable. Distribution of any moneys shall be among the persons entitled to share therein, without regard to the order of priority in which their respective judgments may have been obtained or their claims have been filed. Upon petition of the commissioner, the court may require all claimants and prospective claimants against one licensee to be joined in one action, to the end that the respective rights of all claimants to the Consumer Recovery Account may be equitably adjudicated and settled. (Amended by Stats. 2011, Ch. 712, Sec. 27. (SB 706) Effective January 1, 2012.)
  163. 10475.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    A broker, salesperson, or prepaid rental listing service licensee’s license is automatically suspended if the commissioner pays from the Consumer Recovery Account under the stated evidence conditions, and the license cannot be reinstated until the amount paid is repaid in full with interest.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10475. Should the commissioner pay from the Consumer Recovery Account any amount in settlement of a claim or toward satisfaction of a judgment against a licensed broker or salesperson or a person holding a prepaid rental listing service license, the license of the broker or salesperson or prepaid rental listing service licensee shall be automatically suspended upon the date of payment from the Consumer Recovery Account if the final judgment was established by proof by clear and convincing evidence or the commissioner determined that the claimant provided clear and convincing evidence of the fraud, misrepresentation, deceit, or conversion of trust funds. No broker or salesperson or prepaid rental listing service licensee shall be granted reinstatement until they have repaid in full, plus interest at the prevailing legal rate applicable to a judgment rendered in any court of this state, the amount paid from the Consumer Recovery Account on their account. A discharge in bankruptcy shall not relieve a person from the penalties and disabilities provided in this chapter. (Amended by Stats. 2025, Ch. 786, Sec. 30. (SB 774) Effective January 1, 2026.)
  164. 10476.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    If the Consumer Recovery Account lacks enough money to pay a duly authorized claim, the commissioner must pay the unpaid claim later when funds are sufficient, in the order originally filed, plus 4% annual interest.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10476. If, at any time, the money deposited in the Consumer Recovery Account is insufficient to satisfy any duly authorized claim or portion thereof, the commissioner shall, when sufficient money has been deposited in the Consumer Recovery Account, satisfy the unpaid claims or portions thereof, in the order that the claims or portions thereof were originally filed, plus accumulated interest at the rate of 4 percent a year. (Amended by Stats. 2011, Ch. 712, Sec. 29. (SB 706) Effective January 1, 2012.)
  165. 10477.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

    Verify source ↗

    Money received by the commissioner under this chapter must be deposited in the State Treasury and credited to the Consumer Recovery Account.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10477. Any sums received by the commissioner pursuant to any provisions of this chapter shall be deposited in the State Treasury and credited to the Consumer Recovery Account. (Amended by Stats. 2011, Ch. 712, Sec. 30. (SB 706) Effective January 1, 2012.)
  166. 10478.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    A person or their agent must not file false or materially misleading required documents with the commissioner under this chapter.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10478. It shall be unlawful for any person or the agent of any person to file with the commissioner any notice, statement, or other document required under the provisions of this chapter which is false or untrue or contains any willful, material misstatement of fact. Such conduct shall constitute a public offense punishable by imprisonment in the county jail for a period of not more than one year or a fine of not more than one thousand dollars ($1,000), or both. (Repealed and added by Stats. 1985, Ch. 690, Sec. 3. Operative January 1, 1987, by Sec. 5 of Ch. 690.)
  167. 10479.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    If the commissioner pays a judgment creditor from the Consumer Recovery Account, the commissioner gets the creditor’s judgment rights, the creditor must assign those rights, and any recovered money and interest must go back into the account.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10479. When, the commissioner has paid from the Consumer Recovery Account any sum to the judgment creditor, the commissioner shall be subrogated to all of the rights of the judgment creditor and the judgment creditor shall assign all of his or her right, title, and interest in the judgment to the commissioner and any amount and interest so recovered by the commissioner on the judgment shall be deposited to the Consumer Recovery Account. (Amended by Stats. 2011, Ch. 712, Sec. 31. (SB 706) Effective January 1, 2012.)
  168. 10480.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    If an aggrieved person fails to comply with all provisions of this chapter, they waive any rights under it.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10480. The failure of an aggrieved person to comply with all of the provisions of this chapter shall constitute a waiver of any rights hereunder. (Repealed and added by Stats. 1985, Ch. 690, Sec. 3. Operative January 1, 1987, by Sec. 5 of Ch. 690.)
  169. 10481.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. )

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    The commissioner’s disciplinary authority over licensees is not limited by this chapter, and full repayment to the Consumer Recovery Account does not erase or change other disciplinary proceedings.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 6.5. Real Estate Recovery Program [10470 - 10481] ( Chapter 6.5 added by Stats. 1985, Ch. 690, Sec. 3. ) ## 10481. Nothing in this chapter limits the authority of the commissioner to take disciplinary action against any licensee for a violation of the Real Estate Law, or of Chapter 1 (commencing with Section 11000) of Part 2, or of the rules and regulations of the commissioner; nor shall the repayment in full of all obligations to the Consumer Recovery Account by any licensee nullify or modify the effect of any other disciplinary proceeding brought pursuant to the Real Estate Law. (Amended by Stats. 2011, Ch. 712, Sec. 32. (SB 706) Effective January 1, 2012.)
  170. 105.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. )

    Verify source ↗

    Members of boards in the department must take an oath of office under the Constitution and Government Code.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. ) ## 105. Members of boards in the department shall take an oath of office as provided in the Constitution and the Government Code. (Added by Stats. 1949, Ch. 829.)
  171. 105.5.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. )

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    Members of certain department boards and similar agencies must stay in office until a successor is appointed and qualified, or for at most one year after their term expires, whichever happens first.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. ) ## 105.5. Notwithstanding any other provision of this code, each member of a board, commission, examining committee, or other similarly constituted agency within the department shall hold office until the appointment and qualification of that member’s successor or until one year shall have elapsed since the expiration of the term for which the member was appointed, whichever first occurs. (Amended by Stats. 2019, Ch. 351, Sec. 12. (AB 496) Effective January 1, 2020.)
  172. 1050.

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. )

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    A chiropractic corporation is a registered corporation with a current certificate from the State Board of Chiropractic Examiners, and it may practice chiropractic subject to applicable statutes, rules, and regulations.

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. ) ## 1050. A chiropractic corporation is a corporation which is registered with the State Board of Chiropractic Examiners with reference to corporations rendering professional services as chiropractors and has a currently effective certificate of registration from the board pursuant to the Professional Corporation Act, as contained in Part 4 (commencing with Section 13400) of Division 3 of Title 1 of the Corporations Code, and this article. Subject to all applicable statutes, rules and regulations, such chiropractic corporation is entitled to practice chiropractic. With respect to a chiropractic corporation, the governmental agency referred to in the Professional Corporation Act is the State Board of Chiropractic Examiners with reference to corporations rendering professional services as chiropractors. As used in this article, the “board” refers to the State Board of Chiropractic Examiners. (Added by Stats. 1970, Ch. 1110.)
  173. 10500.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. )

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    A person generally may not, for pay or expected pay, perform listed mineral, oil, or gas brokerage activities unless licensed as a mineral, oil, and gas broker or a real estate broker.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. ) ## 10500. Except as otherwise provided in Section 10131.4 and this chapter, it is unlawful for any person to engage in any of the following acts for another or others for compensation or in expectation of compensation, unless the person is licensed as a mineral, oil, and gas broker or a real estate broker: (a) To sell or offer for sale, buy or offer to buy, solicit prospective sellers or purchasers, solicit or obtain listings, or negotiate the purchase, sale, or exchange of mineral, oil, or gas property. (b) To solicit borrowers or lenders for or negotiate loans on mineral, oil, or gas property, or collect payments for lenders in connection with these loans. (c) To lease or offer to lease or negotiate the sale, purchase, or exchange of leases on mineral, oil, or gas property. (d) To rent or place for rent, mineral, oil, or gas property or to collect rent or royalties from mineral, oil, or gas property or improvements thereon. (e) Other than as an officer or employee of the state or federal government, to assist or offer to assist another or others in filing an application for the purchase or lease of, or to locate or enter upon mineral, oil, or gas property owned by the state or federal government. (Amended by Stats. 1993, Ch. 416, Sec. 15. Effective January 1, 1994.)
  174. 10500.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. )

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    A person may not carry on certain mineral, oil, and gas brokerage activities as a principal unless licensed as a mineral, oil, and gas broker or a real estate broker, subject to stated exceptions.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. ) ## 10500.5. Except as otherwise provided in Section 10131.45 and in this chapter, it is unlawful for any person to engage in the following businesses as a principal unless the person is licensed as a mineral, oil, and gas broker or a real estate broker: (a) Except as provided in subdivision (d) of Section 10502, buying or leasing, or taking an option on mineral, oil, or gas property for the purpose of sale, exchange, lease, sublease, or assignment of a lease of the property or any part of the property. (b) Offering mining claims or any interest therein for sale or assignment. (Amended by Stats. 1993, Ch. 416, Sec. 16. Effective January 1, 1994.)
  175. 10501.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. )

    Verify source ↗

    The Real Estate Commissioner may file complaints for violations of Sections 10500 or 10500.5, and the county district attorney must prosecute those violations. Convicted natural persons and corporations face fines, and natural persons may also face up to six months in county jail.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. ) ## 10501. (a) The Real Estate Commissioner may file a complaint for any violation of Section 10500 or 10500.5 before any court of competent jurisdiction, and the commissioner and the commissioner’s counsel, deputies or assistants may assist in presenting the law or facts at the trial. (b) It is the duty of the district attorney of the county in which a violation of Section 10500 or 10500.5 occurs to prosecute the violation. (c) A natural person convicted of a violation of Section 10500 or 10500.5 shall be punished by a fine of not to exceed five hundred dollars ($500) or by imprisonment in the county jail for a term not to exceed six months, or by both such fine and imprisonment, in the discretion of the court. A corporation convicted of a violation of Section 10500 or 10500.5 shall be punished by a fine of not to exceed five thousand dollars ($5,000). (Repealed and added by Stats. 1983, Ch. 268, Sec. 4.)
  176. 10502.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. )

    Verify source ↗

    A mineral, oil and gas broker license is not required for certain listed activities involving mineral, oil, or gas property.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. ) ## 10502. A mineral, oil and gas broker license shall not be required to engage in any of the following activities with respect to a mineral, oil or gas property: (a) To act as a depository under an oil lease, gas lease or oil and gas lease other than for purpose of sale. (b) To engage in any transaction subject to an order of a court of competent jurisdiction. (c) To engage in the business of drilling for or producing oil or gas or mining for or producing minerals. (d) To negotiate leases or agreements between an owner of mineral, oil or gas lands, leases or mineral rights on the one hand, and a person organized for or engaging in oil or gas or mineral or metal production on the other, or to enter into leases or agreements with an owner of mineral, oil, or gas lands, leases, or mineral rights on behalf of a disclosed or undisclosed person organized for or engaging in oil or gas or mineral or metal production. (e) To deal with mineral rights or land, other than oil or gas rights or land, as the owner of the rights or land. (Added by Stats. 1983, Ch. 268, Sec. 6.)
  177. 10503.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. )

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    This section defines “mineral, oil or gas property” as land used for, intended to be used for, or represented as being used for mining minerals or extracting oil or gas.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. ) ## 10503. Mineral, oil or gas property refers to land used for, intended to be used for, or concerning which representations are made with respect to, the mining of minerals or the extraction of oil or gas therefrom. (Added by Stats. 1943, Ch. 749.)
  178. 10508.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. )

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    A mineral, oil, or gas broker in this state cannot sue to collect compensation for covered acts unless the broker alleges and proves they were duly licensed when the claim arose.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. ) ## 10508. No person engaged in the business or acting in the capacity of a mineral, oil and gas broker within this state shall bring or maintain any action in the courts of this state for the collection of compensation for the performance of any of the acts mentioned in this article without alleging and proving that he was a duly licensed mineral, oil and gas broker at the time the alleged cause of action arose. (Amended by Stats. 1967, Ch. 747.)
  179. 10509.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. )

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    Mineral, oil, and gas brokers and real estate brokers may not pay unlicensed people for work that requires a mineral, oil, and gas broker license. A person who pays compensation for that work commits a misdemeanor unless the recipient is known to be, or has shown proof of being, licensed at the time the compensation was earned.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. ) ## 10509. (a) It is unlawful for a mineral, oil, and gas broker or a real estate broker to compensate, directly or indirectly, any person who is not a mineral, oil, and gas broker or a licensed real estate salesperson retained by the real estate broker for performing any acts for which a mineral, oil, and gas broker license is required. (b) It is a misdemeanor, punishable by a fine of not exceeding one hundred dollars ($100) for each offense, for any person, whether obligor, escrow holder, or otherwise, to pay or deliver compensation to a person for performing any acts for which a mineral, oil, and gas broker license is required unless that person is known by the payer to be or has presented evidence to the payer that he or she was a licensed mineral, oil, and gas broker at the time the compensation was earned. (Amended by Stats. 2018, Ch. 285, Sec. 52. (AB 2884) Effective January 1, 2019.)
  180. 1051.

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. )

    Verify source ↗

    An applicant for chiropractic corporation registration must give the board the requested documents and information about its plan of operations. The board may provide application forms and must issue a registration certificate if the stated conditions are met and the fee is paid.

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. ) ## 1051. An applicant for registration as a chiropractic corporation shall supply to the board all necessary and pertinent documents and information requested by the board concerning the applicant’s plan of operations. The board may provide forms of application. If the board finds that the corporation is duly organized and existing pursuant to the General Corporation Law, that each officer as provided in Section 1055, director, shareholder and each employee who will render professional services is a licensed person as defined in the Professional Corporation Act, and that from the application it appears that the affairs of the corporation will be conducted in compliance with law and the rules and regulations of the board, the board shall upon payment of the registration fee in such amount as it may determine issue a certificate of registration. (Added by Stats. 1970, Ch. 1110.)
  181. 10512.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. )

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    This section makes it a misdemeanor to knowingly help publish or distribute false mineral, oil, or gas property claims, or to willfully ignore the commissioner’s orders, and it provides jail, fine, and possible license discipline penalties.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. ) ## 10512. Every officer, agent or employee of any company, and every other person who knowingly authorizes, directs or aids in the publication, advertisement, distribution or circularization of any false statement or representation concerning any mineral, oil or gas property, or, if the mineral, oil or gas property is owned by the state or federal government, which such person offers to assist another or others to file an application for the purchase or lease of, or to locate or enter upon, and every person who, with knowledge that any advertisement, pamphlet, prospectus or letter concerning any mineral, oil or gas property or any written statement that is false or fraudulent, issues, circulates, publishes or distributes the same, or causes the same to be issued, circulated, published or distributed, or who in any other respect willfully violates or fails, omits, or neglects to obey, observe or comply with any order, permit, decision, demand or requirement of the commissioner under the provisions of this part relating to mineral, oil and gas brokerage, is guilty of a misdemeanor, and shall be punished by imprisonment in the county jail for a term not to exceed six months, or by a fine of not to exceed one thousand dollars ($1,000), and, if a mineral, oil and gas licensee, he shall be held to trial by the commissioner for a suspension or revocation of his mineral, oil and gas license, as provided in the provisions of this part relating to hearings. It shall be the duty of the district attorney of each county in this state to prosecute all violations of the provisions of this section in respective counties in which the violations occur. (Amended by Stats. 1983, Ch. 1092, Sec. 43. Effective September 27, 1983. Operative January 1, 1984, by Sec. 427 of Ch. 1092.)
  182. 10513.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. )

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    Mineral, oil and gas brokers must follow specified real estate broker provisions when acting within the scope and authority of this chapter.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 1. Scope of Regulation [10500 - 10513] ( Article 1 added by Stats. 1943, Ch. 749. ) ## 10513. In performing acts within the scope and under the authority of this chapter, mineral, oil and gas brokers are subject to the provisions applicable to real estate brokers contained in Sections 10131.5, 10140.5, 10142, 10143.5, 10144, 10145, and 10148. (Repealed and added by Stats. 1983, Ch. 268, Sec. 15.)
  183. 10515.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 2. Licenses [10515 - 10519.1] ( Article 2 added by Stats. 1943, Ch. 749. )

    Verify source ↗

    Mineral, oil, and gas brokers are subject to certain real-estate-broker provisions when acting within this chapter, but they are not subject to continuing-education requirements for license renewal.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 2. Licenses [10515 - 10519.1] ( Article 2 added by Stats. 1943, Ch. 749. ) ## 10515. (a) Mineral, oil, and gas brokers in performing acts within the scope and under the authority of this chapter are subject to the provisions applicable to real estate brokers contained in Sections 10153.6, 10156.2, 10157, 10159, 10159.2, 10159.5, 10161.5, 10161.75, 10162, 10163, and 10165. (b) Mineral, oil, and gas brokers shall not be subject to any of the provisions of Article 2 (commencing with Section 10150) or Article 2.5 (commencing with Section 10170) of Chapter 3 which impose continuing education requirements as a prerequisite to the renewal of a license. (Amended by Stats. 1993, Ch. 416, Sec. 19. Effective January 1, 1994.)
  184. 10519.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 2. Licenses [10515 - 10519.1] ( Article 2 added by Stats. 1943, Ch. 749. )

    Verify source ↗

    The commissioner may issue a restricted mineral, oil, and gas broker license to a person whose license was revoked for disciplinary reasons, and may attach terms and conditions to that restricted license.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 2. Licenses [10515 - 10519.1] ( Article 2 added by Stats. 1943, Ch. 749. ) ## 10519. (a) The commissioner may issue a restricted mineral, oil, and gas broker license to a person whose mineral, oil, and gas broker license has been revoked as the result of disciplinary action taken by the commissioner. (b) A restricted mineral, oil, and gas broker license issued by the commissioner may be restricted by term and by the conditions to be observed by the licensee in the performance of acts for which a mineral, oil and gas broker license is required including the posting of a surety bond by the restricted licensee in such form and condition as the commissioner may require. (Amended by Stats. 1993, Ch. 416, Sec. 21. Effective January 1, 1994.)
  185. 10519.1.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 2. Licenses [10515 - 10519.1] ( Article 2 added by Stats. 1943, Ch. 749. )

    Verify source ↗

    A restricted license may be suspended by the commissioner while a disciplinary hearing on charges is pending, and the section says there is no property right or right to renewal in that license.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 2. Licenses [10515 - 10519.1] ( Article 2 added by Stats. 1943, Ch. 749. ) ## 10519.1. There is no property right and no right to the renewal of a restricted license issued pursuant to Section 10519. The commissioner may suspend a restricted license pending the holding of a hearing on charges alleging a basis for disciplinary action against the restricted licensee. (Added by Stats. 1983, Ch. 268, Sec. 29.)
  186. 1053.

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. )

    Verify source ↗

    Each chiropractic corporation must file a report with the board, and an officer of the corporation must sign and verify it. The board sets the filing fee.

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. ) ## 1053. Each chiropractic corporation shall file with the board a report containing such information relating to professional corporations as may be required by board regulations as well as information required by law. The fee for filing such a report shall be fixed by the board. All reports shall be signed and verified by an officer of the corporation. (Added by Stats. 1970, Ch. 1110.)
  187. 1054.

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. )

    Verify source ↗

    A chiropractic corporation’s name, and any name it uses when providing professional services, must include a shareholder’s name or last name, plus “chiropractic” and “corporation” (or an equivalent corporate abbreviation).

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. ) ## 1054. Notwithstanding any other provision of law, the name of a chiropractic corporation and any name or names under which it may be rendering professional services, shall contain the name or the last name of one or more of the present, prospective, or former shareholders, and shall include the word “chiropractic” and the word “corporation” or wording or abbreviations denoting corporate existence. (Amended by Stats. 2004, Ch. 695, Sec. 3. Effective January 1, 2005.)
  188. 1055.

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. )

    Verify source ↗

    Most directors and officers of a chiropractic corporation must be licensed persons, except an assistant secretary and an assistant treasurer, and subject to Section 13403 of the Corporations Code.

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. ) ## 1055. Except as provided in Section 13403 of the Corporations Code, relating to the Professional Corporation Act, each director and each officer of a chiropractic corporation, except an assistant secretary and an assistant treasurer, shall be a licensed person as defined in the Professional Corporation Act. (Added by Stats. 1970, Ch. 1110.)
  189. 1056.

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. )

    Verify source ↗

    A chiropractic corporation’s income from professional services may not be used for the benefit of a shareholder who is a disqualified person, or for that shareholder’s shares.

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. ) ## 1056. The income of a chiropractic corporation attributable to professional services rendered while a shareholder is a disqualified person (as defined in the Professional Corporation Act) shall not in any manner accrue to the benefit of such shareholder or his shares in the chiropractic corporation. (Added by Stats. 1970, Ch. 1110.)
  190. 10560.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 4. Disciplinary Action [10560 - 10564] ( Article 4 added by Stats. 1943, Ch. 749. )

    Verify source ↗

    A mineral, oil and gas license may be revoked or suspended on the grounds listed in this article and other articles of the chapter, following the hearing provisions in this part.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 4. Disciplinary Action [10560 - 10564] ( Article 4 added by Stats. 1943, Ch. 749. ) ## 10560. Upon grounds provided in this article and the other articles of this chapter, the license of any mineral, oil and gas licensee may be revoked or suspended in accordance with the provisions of this part relating to hearings. (Added by Stats. 1943, Ch. 749.)
  191. 10561.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 4. Disciplinary Action [10560 - 10564] ( Article 4 added by Stats. 1943, Ch. 749. )

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    The commissioner must investigate a mineral, oil, and gas licensee’s conduct when a written verified complaint is filed, and may also investigate on the commissioner’s own motion. The commissioner may suspend or revoke the license if the licensee commits any of the listed misconduct.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 4. Disciplinary Action [10560 - 10564] ( Article 4 added by Stats. 1943, Ch. 749. ) ## 10561. The commissioner may, upon his or her own motion, and shall, upon the verified complaint in writing of any person, investigate the actions of any person engaged in the business or acting in the capacity of a mineral, oil, and gas licensee, within this state, and he or she may temporarily suspend or permanently revoke a mineral, oil, and gas license at any time if the licensee, while a mineral, oil, and gas licensee, in performing or attempting to perform any of the acts within the scope of this chapter, has been guilty of any of the following: (a) Making any substantial misrepresentation. (b) Making any false promises of a character likely to influence, persuade, or induce. (c) Acting for more than one party in a transaction without the knowledge or consent of all parties thereto. (d) Commingling with his or her own money or property the money or property of others that is received and held by him or her. (e) Claiming or demanding a fee, compensation, or commission under any exclusive agreement authorizing or employing a licensee to sell, buy, or exchange mineral, oil, or gas property for compensation, or commission where that agreement does not contain a definite, specified date of final and complete termination. (f) Claiming or taking by a licensee of any secret or undisclosed amount of compensation, commission, or profit, or the failure of a licensee to reveal to the employer of such licensee the full amount of the licensee’s compensation, commission, or profit under any agreement authorizing or employing the licensee to do any acts for which a license is required under this chapter for compensation or commission prior to or coincident with the signing of an agreement evidencing the meeting of the minds of the contracting parties, regardless of the form of such agreement, whether evidenced by documents in an escrow or by any other or different procedure. (g) The use by a licensee of any provision allowing the licensee an option to purchase in an agreement authorizing or employing the licensee to sell, buy, or exchange mineral, oil, or gas property for compensation or commission, except when the licensee prior to or coincident with election to exercise the option to purchase reveals in writing to the employer the full amount of the licensee’s profit and obtains the written consent of the employer approving the amount of that profit. (h) Any other conduct, whether of the same or a different character than specified in this section, which constitutes fraud or dishonest dealing. (Amended by Stats. 2018, Ch. 285, Sec. 53. (AB 2884) Effective January 1, 2019.)
  192. 10562.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 4. Disciplinary Action [10560 - 10564] ( Article 4 added by Stats. 1943, Ch. 749. )

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    The commissioner may suspend or revoke a mineral, oil, and gas licensee’s license for listed misconduct or violations.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 4. Disciplinary Action [10560 - 10564] ( Article 4 added by Stats. 1943, Ch. 749. ) ## 10562. The commissioner may suspend or revoke the license of a mineral, oil, and gas licensee who has done any of the following: (a) Entered a plea of guilty or nolo contendere to, or been found guilty of, or been convicted of, a felony, or a crime substantially related to the qualifications, functions, or duties of a mineral, oil, and gas licensee, and the time for appeal has elapsed or the judgment of conviction has been affirmed on appeal, irrespective of an order granting probation following that conviction, suspending the imposition of sentence, or of a subsequent order under the provision of Section 1203.4 of the Penal Code allowing the licensee to withdraw his or her plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty, or dismissing the accusation or information. (b) Knowingly authorized, directed, connived at or aided in the publication, advertisement, distribution, or circulation of a material false statement or representation concerning his or her business or a mineral, oil, or gas property offered for sale. (c) Willfully disregarded or violated any of the provisions of the Real Estate Law (commencing with Section 10000) or of Chapter 1 (commencing with Section 11000) of Part 2 or of the rules and regulations of the commissioner for the administration and enforcement of the Real Estate Law and Chapter 1 (commencing with Section 11000) of Part 2. (d) Acted or conducted himself or herself in a manner which would have warranted the denial of his or her application for a mineral, oil, and gas license. (e) Willfully used the term “realtor” or a trade name or insigne of membership in a real estate organization of which the licensee is not a member. (f) Demonstrated negligence or incompetence in performing an act for which he or she is required to hold a license. (g) Has used his or her employment by a governmental agency in a capacity giving access to records, other than public records, in a manner that violates the confidential nature of the records. (h) Any other conduct, whether of the same or a different character than specified in this section, which constitutes fraud or dishonest dealing. (Amended by Stats. 2007, Ch. 140, Sec. 2. Effective January 1, 2008.)
  193. 10562.5.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 4. Disciplinary Action [10560 - 10564] ( Article 4 added by Stats. 1943, Ch. 749. )

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    If a civil court enters a final judgment against a mineral, oil and gas licensee for fraud, misrepresentation, or deceit in a licensed transaction, the commissioner may suspend or revoke the license after a hearing.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 4. Disciplinary Action [10560 - 10564] ( Article 4 added by Stats. 1943, Ch. 749. ) ## 10562.5. When a final judgment is obtained in a civil action against any mineral, oil and gas licensee upon grounds of fraud, misrepresentation, or deceit with reference to any transaction for which a license is required under this division, the commissioner may, after hearing in accordance with the provisions of this part relating to hearings, suspend or revoke the license of such mineral, oil and gas licensee. (Amended by Stats. 1953, Ch. 760.)
  194. 10564.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 4. Disciplinary Action [10560 - 10564] ( Article 4 added by Stats. 1943, Ch. 749. )

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    The commissioner may suspend or revoke a corporation’s mineral, oil, and gas license as it applies to an officer or agent acting under that license, without revoking the corporation’s own license.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 4. Disciplinary Action [10560 - 10564] ( Article 4 added by Stats. 1943, Ch. 749. ) ## 10564. The commissioner may suspend or revoke the mineral, oil, and gas license of a corporation as to any officer or agent acting under its mineral, oil, and gas license, without revoking the mineral, oil, and gas license of the corporation. (Amended by Stats. 1993, Ch. 416, Sec. 23. Effective January 1, 1994.)
  195. 1057.

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. )

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    A chiropractic corporation must not engage in conduct that would be unprofessional conduct under applicable statutes, rules, or regulations, and the board may discipline it and make rules to enforce this article.

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. ) ## 1057. A chiropractic corporation shall not do or fail to do any act the doing of which or the failure to do which would constitute unprofessional conduct under any statute, rule or regulation now or hereafter in effect. In the conduct of its practice, it shall observe and be bound by such statutes, rules and regulations to the same extent as a person holding a license under the Chiropractic Act. The board shall have the same powers of suspension, revocation and discipline against a chiropractic corporation as are now or hereafter authorized by the initiative measure mentioned in Section 1000 or by any other similar statute against individual licensees, provided, however, that proceedings against a chiropractic corporation shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the board shall have all the powers granted therein. The board may formulate and enforce rules and regulations to carry out the purposes and objectives of this article, including rules and regulations requiring (a) that the articles of incorporation or bylaws of a chiropractic corporation shall include a provision whereby the capital stock of such corporation owned by a disqualified person (as defined in the Professional Corporation Act), or a deceased person, shall be sold to the corporation or to the remaining shareholders of such corporation within such time as such rules and regulations may provide, and (b) that a chiropractic corporation as a condition of obtaining a certificate pursuant to the Professional Corporation Act and this article shall provide adequate security by insurance or otherwise for claims against it by its patients arising out of the rendering of professional services. (Added by Stats. 1970, Ch. 1110.)
  196. 1058.

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. )

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    The board must use money received under this article to carry out the article’s purposes.

    ## Business and Professions Code - BPC ## DIVISION 2. HEALING ARTS [500 - 4999.202] ( Division 2 enacted by Stats. 1937, Ch. 399. ) ## CHAPTER 2. Chiropractors [1000 - 1058] ( Chapter 2 enacted by Stats. 1937, Ch. 399. ) ## ARTICLE 2. Chiropractic Corporations [1050 - 1058] ( Article 2 added by Stats. 1970, Ch. 1110. ) ## 1058. Moneys received by the board pursuant to this article shall be used to carry out the purposes of this article. (Added by Stats. 1970, Ch. 1110.)
  197. 10580.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 5. Fees [10580- 10580.] ( Article 5 added by Stats. 1943, Ch. 749. )

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    Mineral, oil, and gas brokers are subject to the real-estate-broker provisions listed in this section.

    ## Business and Professions Code - BPC ## DIVISION 4. REAL ESTATE [10000 - 11506] ( Division 4 added by Stats. 1943, Ch. 127. ) ## PART 1. LICENSING OF PERSONS [10000 - 10580] ( Part 1 added by Stats. 1943, Ch. 127. ) ## CHAPTER 7. Mineral, Oil and Gas Brokerage [10500 - 10580] ( Chapter 7 added by Stats. 1943, Ch. 749. ) ## ARTICLE 5. Fees [10580- 10580.] ( Article 5 added by Stats. 1943, Ch. 749. ) ## 10580. Mineral, oil, and gas brokers are subject to the provisions applicable to real estate brokers contained in Sections 10200, 10207, 10209.5, 10210, 10211, and 10222. (Amended by Stats. 1993, Ch. 416, Sec. 25. Effective January 1, 1994.)
  198. 106.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. )

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    The appointing authority may remove appointed board members from office at any time for neglect of duties, incompetence, or unprofessional or dishonorable conduct.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. ) ## 106. The appointing authority has power to remove from office at any time any member of any board appointed by the appointing authority for continued neglect of duties required by law, or for incompetence, or unprofessional or dishonorable conduct. Nothing in this section shall be construed as a limitation or restriction on the power of the appointing authority conferred on the appointing authority by any other provision of law to remove any member of any board. (Amended by Stats. 2019, Ch. 351, Sec. 13. (AB 496) Effective January 1, 2020.)
  199. 106.5.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. )

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    The Governor may remove a board or licensing-entity member who knows next-exam questions and discloses them to an applicant.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. ) ## 106.5. Notwithstanding any other provision of law, the Governor may remove from office a member of a board or other licensing entity in the department if it is shown that such member has knowledge of the specific questions to be asked on the licensing entity’s next examination and directly or indirectly discloses any such question or questions in advance of or during the examination to any applicant for that examination. The proceedings for removal shall be conducted in accordance with the provisions of Chapter 5 of Part 1 of Division 3 of Title 2 of the Government Code, and the Governor shall have all the powers granted therein. (Added by Stats. 1977, Ch. 482.)
  200. 107.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. )

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    Each board may appoint a civil-service-exempt person, designate that person as executive officer unless the licensing act says registrar, and set the salary with Department of Human Resources approval.

    ## Business and Professions Code - BPC ## DIVISION 1. DEPARTMENT OF CONSUMER AFFAIRS [100 - 472.5] ( Heading of Division 1 amended by Stats. 1973, Ch. 77. ) ## CHAPTER 1. The Department [100 - 144.7] ( Chapter 1 enacted by Stats. 1937, Ch. 399. ) ## 107. Pursuant to subdivision (e) of Section 4 of Article VII of the California Constitution, each board may appoint a person exempt from civil service, who shall be designated as an executive officer unless the licensing act of the particular board designates the person as a registrar, and may fix that person’s salary, with the approval of the Department of Human Resources pursuant to Section 19825 of the Government Code. (Amended by Stats. 2020, Ch. 370, Sec. 1. (SB 1371) Effective January 1, 2021.)

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