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.
Real Estate RegulationsDisciplinary Action
Section § 10175
This law states that a real estate license in California can be suspended or revoked if there are valid reasons according to specific rules and procedures outlined in related articles, following a formal hearing process.
real estate license license suspension license revocation
Section § 10175.2
This section allows a real estate licensee facing suspension to instead pay a fine if the Real Estate Commissioner thinks it's best for public interest. The licensee must request this option and commit to not breaking any more rules for a set time. The commissioner can allow this option after a formal accusation is made against the licensee. If the licensee doesn't pay on time, the suspension can be enforced immediately, and they won't get any refunds. The fine can be up to $250 per day of suspension, with a cap of $10,000. All fines collected go to the Consumer Recovery Account.
(a)CA Business & Professions Code § 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)CA Business & Professions Code § 10175.2(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)CA Business & Professions Code § 10175.2(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)CA Business & Professions Code § 10175.2(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)CA Business & Professions Code § 10175.2(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.
Real Estate Commissioner public interest monetary penalty
Section § 10176
This section explains when a real estate license can be suspended or revoked. The commissioner can investigate any real estate licensee and take action if the licensee is found guilty of certain misconduct. These include making significant misrepresentations, making false promises, dealing unfairly with clients, mixing personal funds with client funds, or taking undisclosed fees or profits. Other actions like handling transactions for multiple parties without their consent, delaying mortgage closings unfairly, and not adhering to legal obligations could also result in losing the license.
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)CA Business & Professions Code § 10176(a) Making any substantial misrepresentation.
(b)CA Business & Professions Code § 10176(b) Making any false promises of a character likely to influence, persuade, or induce.
(c)CA Business & Professions Code § 10176(c) A
continued and flagrant course of misrepresentation or making of false promises through licensees.
(d)CA Business & Professions Code § 10176(d) Acting for more than one party in a transaction without the knowledge or consent of all parties thereto.
(e)CA Business & Professions Code § 10176(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)CA Business & Professions Code § 10176(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)CA Business & Professions Code § 10176(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)CA Business & Professions Code § 10176(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)CA Business & Professions Code § 10176(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)CA Business & Professions Code § 10176(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)CA Business & Professions Code § 10176(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)CA Business & Professions Code § 10176(k)(1) The lender.
(2)CA Business & Professions Code § 10176(k)(2) Authorized to issue the commitment on behalf of the lender or lenders in the mortgage loan transaction.
(l)CA Business & Professions Code § 10176(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)CA Business & Professions Code § 10176(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.
real estate license misrepresentation false promises
Section § 10176.1
This law section addresses what happens when a real estate licensee in California faces enforcement or disciplinary action related to escrow services. Once such action is finalized, the Real Estate Commissioner must inform both the Insurance Commissioner and the Commissioner of Financial Protection and Innovation. This is important if the licensee wants to work for companies regulated by these bodies. The Real Estate Commissioner will also share documents and facts about the case if requested, while maintaining confidentiality. Additionally, the Department of Real Estate must maintain an online database listing disciplined licensees, and connect this to similar databases from the financial and insurance sectors. Lastly, there's no liability for the state or its employees if they wrongly release or don't release information, unless it was done knowingly and maliciously.
(a)Copy CA Business & Professions Code § 10176.1(a)
(1)Copy CA Business & Professions Code § 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)CA Business & Professions Code § 10176.1(a)(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)CA Business & Professions Code § 10176.1(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)CA Business & Professions Code § 10176.1(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.
real estate licensee enforcement escrow services disciplinary action
Section § 10176.5
This law says that the real estate commissioner can investigate a real estate agent in California if they receive a written complaint or decide to do so on their own. If the agent knowingly breaks certain real estate laws multiple times, the commissioner can suspend or revoke their license. Additionally, for violations related to specific real estate disclosure requirements, this investigation and potential license action are the sole remedies available.
(a)CA Business & Professions Code § 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)CA Business & Professions Code § 10176.5(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.
real estate license commissioner investigation verified complaint
Section § 10177
This law allows the commissioner to suspend or deny a real estate license if the licensee or corporation has engaged in wrongful acts. These acts include fraud or deceit in obtaining a license, criminal convictions related to their duties, making false statements about their credentials, and violating specific real estate regulations. It also covers negligence, improper supervision, misuse of confidential records, dishonest conduct, and engaging in discriminatory practices related to property value or neighborhood demographics. Violating certain business laws or failing to disclose ownership interests in real estate transactions can also result in license issues. Corporations must disassociate from offending individuals to retain their license if such acts are committed independently by someone linked to them. Any delay in license renewal due to pending actions tolls the license expiration until resolved.
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)CA Business & Professions Code § 10177(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)Copy CA Business & Professions Code § 10177(b)
(1)Copy CA Business & Professions Code § 10177(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)CA Business & Professions Code § 10177(b)(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)CA Business & Professions Code § 10177(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)CA Business & Professions Code § 10177(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)CA Business & Professions Code § 10177(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)CA Business & Professions Code § 10177(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)CA Business & Professions Code § 10177(g) Demonstrated negligence or incompetence in performing an act for which the officer, director, or person is required to hold a license.
(h)CA Business & Professions Code § 10177(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)CA Business & Professions Code § 10177(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)CA Business & Professions Code § 10177(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)CA Business & Professions Code § 10177(k) Violated any of the terms, conditions, restrictions, and limitations contained in an order granting a restricted license.
(l)Copy CA Business & Professions Code § 10177(l)
(1)Copy CA Business & Professions Code § 10177(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)CA Business & Professions Code § 10177(l)(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)CA Business & Professions Code § 10177(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)CA Business & Professions Code § 10177(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)CA Business & Professions Code § 10177(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)CA Business & Professions Code § 10177(p) Violated Article 6 (commencing with Section 10237).
(q)CA Business & Professions Code § 10177(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.
real estate license suspension fraud in obtaining license criminal conviction
Section § 10177.1
This law says that if a person gets a license through fraud or lying, the commissioner can suspend that license without a hearing. But this power is only for 90 days after the license is given out. If you are suspended, you'll get a notice and have 30 days to request a hearing. If a hearing isn’t held or a decision isn’t made in the given timeline, the suspension will be canceled. The hearings follow specific rules from the Government Code.
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.
license suspension fraudulent license misrepresentation
Section § 10177.2
This law allows the real estate commissioner to investigate any licensee, either on their own initiative or based on a written complaint. They can suspend or revoke a real estate license if the licensee commits certain violations. These violations include using false names or giving misleading information in mobilehome registration applications, failing to properly transfer ownership documents for a mobilehome, being involved in the sale or purchase of a stolen mobilehome, and bouncing a check when paying fees to the government.
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)CA Business & Professions Code § 10177.2(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)CA Business & Professions Code § 10177.2(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)CA Business & Professions Code § 10177.2(c) Has knowingly participated in the purchase, sale, or other acquisition or disposal of a stolen mobilehome.
(d)CA Business & Professions Code § 10177.2(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.
real estate commissioner license suspension license revocation
Section § 10177.3
This law states that anyone with a professional real estate license must not lie or deliberately give false information about the value of a property. It also says that if a licensee gives an opinion on a property's value that will be used for a mortgage loan, they cannot have any conflicted personal interest in that property according to certain federal regulations.
(a)CA Business & Professions Code § 10177.3(a) No licensee shall knowingly or intentionally misrepresent the value of real property.
(b)CA Business & Professions Code § 10177.3(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.
licensee misrepresent value real property
Section § 10177.4
This law allows the real estate commissioner to suspend or revoke the license of a real estate agent who takes commissions or fees for referring clients to certain services, like escrow or pest control, except when the payment is for actual work done or services provided. If a licensee reports someone else for breaking this rule, they won't be punished unless they were involved. The law also clarifies that legitimate business expenses, like payments for real work or materials, are not considered 'other consideration.' Agents still need to make any required disclosures about their activities.
(a)CA Business & Professions Code § 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)CA Business & Professions Code § 10177.4(b) The term “other consideration” as used in this section does not include any of the following:
(1)CA Business & Professions Code § 10177.4(b)(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)CA Business & Professions Code § 10177.4(b)(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)CA Business & Professions Code § 10177.4(b)(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)CA Business & Professions Code § 10177.4(b)(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)CA Business & Professions Code § 10177.4(c) Nothing in this section shall relieve any licensee of the obligation of disclosure otherwise required by this part.
real estate licensee commission fee
Section § 10177.5
If a real estate agent in California is found guilty in a civil court for committing fraud, lying, or being deceitful related to a licensed transaction, their license can be suspended or revoked. This decision is made by a commissioner after a proper hearing.
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.
real estate license fraud misrepresentation
Section § 10177.6
If you're working as an agent arranging financing for a property deal, or if you're financing and also acting as an agent, you need to let everyone involved know about your dual roles in writing within 24 hours. This helps keep everything transparent. The definition of 'agent' is the same as in another part of the law, specifically the Civil Code.
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.
real estate financing written disclosure dual roles
Section § 10178
If a real estate salesperson is fired by their broker for breaking rules that can lead to discipline, the broker must quickly report the facts to the state commissioner. If the broker doesn't report it, their own real estate license might be suspended or revoked after a hearing.
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.
real estate salesperson responsible broker violation
Section § 10179
If a real estate salesperson or an employee of a real estate broker does something wrong, the broker's license won't be revoked or suspended unless it's proven in a hearing that the broker knew about the misconduct.
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.
real estate salesperson licensed broker responsible broker
Section § 10180
This law allows the commissioner to take action against the real estate license of a corporation by denying, suspending, or revoking the license of specific officers or agents without needing to revoke the entire corporation's license.
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.
commissioner authority real estate license corporation officers
Section § 10182
If your professional license in California has been revoked or suspended, you might need to pass a test to get it back. This decision is up to the commissioner in charge.
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.
license reinstatement revoked license suspended license
Section § 10185
This law states that if someone, whether an individual or part of a corporation, intentionally or knowingly breaks any rule in this division, they can be found guilty of a misdemeanor. This could result in a fine of up to $10,000, a county jail sentence of up to six months, or both.
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.
misdemeanor fine imprisonment
Section § 10186
This law section outlines the conditions under which a restricted license or mortgage loan originator license can be issued. If you've been given the chance to apply for a restricted license after an administrative issue, the commissioner can make you pay for monitoring costs. They might also make you pay back people who were harmed by your actions. If you don’t pay these costs, your restricted license won't be renewed or upgraded. If your license was revoked, you might have to pay to get it reinstated. Any costs collected go into the Real Estate Fund for use, subject to legislative approval.
(a)CA Business & Professions Code § 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)CA Business & Professions Code § 10186(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)CA Business & Professions Code § 10186(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)CA Business & Professions Code § 10186(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)CA Business & Professions Code § 10186(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)CA Business & Professions Code § 10186(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.
restricted license mortgage loan originator license commissioner
Section § 10186.1
If someone with a professional license from the department gets convicted of a felony and ends up in jail, their license is paused automatically. The department checks the conviction to see how long to suspend the license and lets the license holder know. If the felony relates to their professional duties, the license stays suspended until any appeals are done. For certain serious crimes like drug offenses or violent crimes, it's assumed automatically related to their job, so no hearing is needed. However, the commissioner can decide to end the suspension if it's fair. The licensee can also ask for a penalty hearing sooner, but if their conviction is overturned on appeal, any punishment stops. The usual rules for taking away licenses don't apply here, since this law has its own process.
(a)CA Business & Professions Code § 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)CA Business & Professions Code § 10186.1(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)CA Business & Professions Code § 10186.1(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)Copy CA Business & Professions Code § 10186.1(d)
(1)Copy CA Business & Professions Code § 10186.1(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)CA Business & Professions Code § 10186.1(d)(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)CA Business & Professions Code § 10186.1(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)CA Business & Professions Code § 10186.1(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.
license suspension felony conviction automatic suspension
Section § 10186.2
If you hold a professional license and face criminal charges or convictions, or if another licensing authority takes disciplinary action against you, you must report it to the department. You have 30 days to do so after the charge, conviction, or action occurs. Not reporting this information can lead to discipline against you.
(a)Copy CA Business & Professions Code § 10186.2(a)
(1)Copy CA Business & Professions Code § 10186.2(a)(1) A licensee shall report any of the following to the department:
(A)CA Business & Professions Code § 10186.2(a)(1)(A) The bringing of a criminal complaint, information, or indictment charging a felony against the licensee.
(B)CA Business & Professions Code § 10186.2(a)(1)(B) The conviction of the licensee, including any verdict of guilty, or plea of guilty or no contest, of any felony or misdemeanor.
(C)CA Business & Professions Code § 10186.2(a)(1)(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)CA Business & Professions Code § 10186.2(a)(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)CA Business & Professions Code § 10186.2(b) Failure to make a report required by this section shall constitute a cause for discipline.
licensee reporting obligations criminal charges notification felony indictment
Section § 10186.9
Starting from January 1, 2015, the department is required to be reviewed by the policy committees in the Legislature, regardless of any other laws.
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.
policy committees Legislature review department oversight
