Key Takeaways
- The California Department of Real Estate (DRE) regulates real estate licensees under the Real Estate Law (Business and Professions Code)
- The Real Estate Commissioner is appointed by the Governor and oversees all DRE operations and licensing
- DRE has authority to investigate complaints, conduct audits, and take disciplinary action against licensees
- California requires 135 hours of pre-license education: Real Estate Principles, Real Estate Practice, and one elective
- The salesperson exam has 150 questions with 3 hours time limit and 70% passing score; total cost is $450 ($100 exam + $350 license)
California Department of Real Estate (DRE)
The California Department of Real Estate (DRE) is the state agency responsible for regulating real estate licensees and enforcing the Real Estate Law contained in the California Business and Professions Code.
DRE Structure and Authority
The DRE is headed by the Real Estate Commissioner, who is appointed by the Governor. The Commissioner has broad authority to:
- Issue, suspend, and revoke real estate licenses
- Adopt regulations to enforce the Real Estate Law
- Investigate complaints against licensees
- Conduct audits of broker trust accounts
- Take disciplinary action for violations
Key DRE Functions
| Function | Description |
|---|---|
| Licensing | Process applications, administer exams, issue licenses |
| Education | Approve schools and courses, set education requirements |
| Enforcement | Investigate complaints, audit trust accounts |
| Discipline | Suspend, revoke, or restrict licenses |
| Recovery Fund | Administer claims from victims of licensee fraud |
The Real Estate Law
California's Real Estate Law is found in Division 4 of the Business and Professions Code (Sections 10000-10580). Key provisions include:
- License requirements - Who must be licensed and exemptions
- Prohibited conduct - Actions that violate the law
- Trust fund handling - Rules for managing client funds
- Disclosure requirements - What agents must disclose
The Commissioner's Regulations (California Code of Regulations, Title 10, Chapter 6) provide additional rules and procedures.
Exam Tip: The Real Estate Commissioner can revoke a license but cannot impose a fine. Fines require court action.
DRE Offices
The DRE operates offices throughout California:
- Sacramento - Main headquarters
- Oakland - Northern California
- Los Angeles - Southern California
- San Diego - Southern California
- Fresno - Central California
Exams are administered at PSI testing centers statewide through the eLicensing system.
Who appoints the California Real Estate Commissioner?
Where is the California Real Estate Law found?