Find here a summary of important legislative updates affecting California real estate professionals.
Assembly Bill 1650—Disclosure Requirements on Solicitations
New legislation has been signed Read more...
Find here a summary of important legislative updates affecting California real estate professionals.
Assembly Bill 1650—Disclosure Requirements on Solicitations
New legislation has been signed into law by the governor that affects disclosure requirements on real estate solicitation materials.
A.B. 1650 is concerned with real estate licensees disclosing when they are performing a task that requires a license if it is intended as a first point of contact with a consumer. Thus any publishing or distributing of materials that advertise a product or service that requires a license must state that a license is required for that activity. For example, if a REALTOR® wants to advertise his or her listing services, their distributed material must make it clear that listing a property requires a real estate license.
All of these “first point of contact” materials are also required to include the licensees license identification number and apply to mortgage loan originators as well, not just real estate salespersons or brokers.
The new law provides examples of materials that will require this disclosure. It specifically states that covered materials “includes business cards, stationery, advertising flyers, and other materials designed to solicit the creation of a professional relationship between the licensee and a consumer”. Note that this is not an all-inclusive list and any other material intended as a first point of contact with consumers would be subject to the same requirements. The real estate commissioner has the power to define the list further.
This law’s reach does not extend, however, to “an advertisement in print or electronic media” or to for sale signs.
SB 710 Clarifies Team Name Laws
Current California law requires the listing of the company name and responsible broker’s license number on all team advertising materials, which was not the intent of legislators when they originally wrote the law.
Enter Senate Bill 710, which, effective immediately, changes the requirement from both the “name under which the responsible broker is currently licensed by the bureau and conducts business in general or is a substantial division of the real estate firm” and the associated license identification number, to that name or that name and the license identification number.
Those wishing to refrain from listing the broker’s identification number on advertising materials may now do so. Again, this law is effective immediately.
For any further information, the text of the legislation can be found here
AB 2330 Updates Broker Associates Searchable Information and Broker Notification Requirements
The California legislature has unanimously passed and Gov. Brown has signed into law AB 2330 and goes into effect January 1st, 2018. This new law requires brokers to “immediately notify the Commissioner in writing” when a new real estate salesperson hangs their license under the broker or is terminated by the broker. “Willful or knowing” violation of this provision is punishable as a misdemeanor.
Brokers must also report to CalBRE if a licensee is an “associate licensee” and if so, which broker the licensee is contractually associated with. CalBRE will be required to publish this information as well.
AB 197, SB 32: Greenhouse Gas Legislation
A seemingly unusual law for inclusion in a real estate-centered legislative update, but this law actually has the potential to be quite important.
This law requires the State Air Resources Board to “approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990” to be achieved by 2020. By 2030 greenhouse gas emissions are to be reduced to 40% below 1990 levels. The board is also required to “protect the state’s most impacted and disadvantaged communities” while creating these regulations.
This means that more steps will be taken to lower emissions—steps that have not yet been decided. The economic impacts are not yet known. Housing is clearly an issue that disadvantaged communities are concerned with, perhaps lending strength to the argument that policies that would directly affect the housing market will not be included. Yet, there is not yet any such guarantee. Real estate professionals should watch this law and its impacts as they assess their markets. Adhi encourages our students and readers to pay attention to politics and the state of the economy as our industry is dependent upon consumer confidence and a healthy economy.
AB 73: Clarifications Upon Disclosures of Death, HIV
This law, which took effect on September 25th, 2016, updates the wording of the law to clarify required disclosures. One such clarification is the confirmation that owners and agents are not required to disclose an occupant’s death or cause of death on the property if it occurred more than three years prior “to the date the transferee offers to purchase, lease, or rent the property”. Previously the law only stated that failure to disclose under these circumstances provided no cause of action.
This law also clarifies the disclosures surrounding HIV/AIDS. Owners and agents are not required to disclose that “an occupant of the property was living with human immunodeficiency virus (HIV) or died from AIDS-related complications” at any point.
It is of crucial importance that California real estate professionals fully understand these disclosure requirements in order to fulfill their duties to their client and not violate the law.
AB 2406, AB 2299, and SB 1069: “Accessory Dwelling Units”
These laws change some requirements for the zoning and creation of “Accessory Dwelling Units” (ABUs), formerly referred to as “Second Units”.
AB 2406 permits a “local [housing] agency” to “provide by ordinance” for the creation of ABUs in single-family or multifamily residential areas. This includes “Junior” ABUs within a single-family home. Any proposed ordinance to permit these ABUs must include “among other things”, building standards for the creation of said ABUs, “required deed restrictions, and occupancy requirements”. Additional parking requirements for the unit are prohibited by this law.
AB 2299 and SB 1069 work together to change the term “Second Unit” to “Accessory Dwelling Unit” as well as establish guidelines for ADU permit review processes and restrictions with the declared hope of increasing housing supply in the state. Cities and counties are permitted to identify and/or evaluate potential sites for the creation of ABUs. Cities and counties will be able to substitute ABUs for up to 25% of “the community’s obligation to identify sites for any income category” (meaning that communities that invest in housing may include ABUs as part of said investment, with further requirements.)
The laws also mandate that local agencies approve or disapprove applications “ministerially without discretionary review” unless they have adopted their own ordinance in accordance with this law—incentivizing local agency cooperation. Local agencies can adopt certain restrictions to accommodate other zoning laws.
For specific requirements and details of these laws, visit them here: AB 2406, AB 2299, SB 1069
We welcome feedback and commentary from our readers on these important new laws. Do you foresee important market impacts? Will any of these laws affect your business in any way? Let us know in the comments. And as always, for any questions or clarifications feel free to reach out to cody@adhischools.com
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In what should be exciting news to any Veterans looking to pursue a career in real estate, effective July 1st the initial licensure processing for all honorably discharged Veterans will be expedited.
S.B. Read more...
In what should be exciting news to any Veterans looking to pursue a career in real estate, effective July 1st the initial licensure processing for all honorably discharged Veterans will be expedited.
S.B. 1226 added Section 115.4 to the Business and Professions Code (BPC) and requires that all boards within the jurisdiction of the Department of Consumer Affairs “expedite, and may assist, the initial licensure process” for any applicant that can prove honorable discharge from the U.S. Armed Forces. This includes the licensure process under the California Bureau of Real Estate. The Salesperson Exam/ License Application also provides the details for this expedited process. There is no word yet on how expedited the process will be, but considering the process can currently take several weeks this should be a valuable perk for Veterans.
We at Adhi Schools would like to thank all Veterans for their service and remind our readers that Veterans receive a 25% discount from our live packages if they choose Adhi for their real estate education. We are proud to say that we have many Veteran students who have completed our programs and we always provide the highest quality real estate education to those who have served our country.
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Jeff Davi is the current Real Estate Commissioner for the California Bureau of Real Estate. He is a licensed real estate broker and a graduate of St. Mary's College in Moraga.
The Real Estate Commissioner Read more...
Jeff Davi is the current Real Estate Commissioner for the California Bureau of Real Estate. He is a licensed real estate broker and a graduate of St. Mary's College in Moraga.
The Real Estate Commissioner is the head of the Bureau of Real Estate.
The DRE adds "Commissioner Davi previously served as a Director for the California Association of Realtors and President of the Monterey County Association of Realtors. He also served as president of the Economic Development Corporation of Monterey County, was co-founder of the Affordable Housing Steering Council of Monterey County and was on the founding board of directors of the Monterey County Visitor and Convention Bureau."
He was appointed on October 6, 2004.
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In order to get a real estate license, you have to take classes. We all know that. In order to get a brokers license, you could use a college degree to waive the two-year experience requirement. We Read more...
In order to get a real estate license, you have to take classes. We all know that. In order to get a brokers license, you could use a college degree to waive the two-year experience requirement. We also know that. What about if you have taken classes at a University overseas? The Department of Real Estate requires:"Courses must be completed at an institution of higher learning accredited by the Western Association of Schools and Colleges or by a comparable regional accrediting agency recognized by the United States Department of Education, or by a private real estate school which has had its courses approved by the California Real Estate Commissioner."If you have taken a course or have a degree from overseas the courses "completed through foreign institutions of higher learning must be evaluated by a foreign credentials evaluation service approved by the Department of Real Estate."Check out the form to use to submit the foreign transcripts here.Let me know if you have any questions!
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My sister was born with cerebral palsy, I am intimately familiar with those affected by physical disabilities. The Department of Real Estate has a form that you can use, if needed, to request special Read more...
My sister was born with cerebral palsy, I am intimately familiar with those affected by physical disabilities. The Department of Real Estate has a form that you can use, if needed, to request special accommodations during your state exam.Here is an excerpt from the form""In compliance with the Americans with Disabilities Act (ADA), Public Law 101-336, the Department of Real Estate (DRE) provides “reasonable accommodations” for examination applicants with disabilities. It is the applicant’s responsibility to notify DRE of alternative arrangements needed. DRE will provide special accommodations once your accommodation needs are documented. The information requested below and any documentation regarding your disability will be considered strictly confidential and will not be shared with any outside source without your express written permission."In 2006, I brought this to the attention of the California Department of Real Estate at an open forum and DRE executive Barbara Bigby assured me that the DRE is committed to providing examinees with accommodations in compliance with the Americans With Disabilities Act.ADHI Schools is committed to providing a world-class learning experience. Please let me know if we can help in any way!
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These are as of September 2008 from the Department of Real Estate website
September 2008
This month
Last month
12 months ago
24 months ago
Licensee Population:
Brokers
152,832
152,854
149,189
139,822
Salespersons
384,753
386,510
394,005
374,462
Total Licensees
537,585
539,364
543,194
514,284
Real Estate Licenses Issued:
Original Broker
Original Broker
571
728
749
514,284
Original Salesperson
1,160
1,240
2,940
Examinations:
Broker Administered
999
914
842
Salesperson Administered
1,590
1,855
14,918
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According to the Department of Real Estate, the salespersons examination consists of the following topics with the following distribution of questions in percentage terms:Property Ownership and Land Use Read more...
According to the Department of Real Estate, the salespersons examination consists of the following topics with the following distribution of questions in percentage terms:Property Ownership and Land Use Controls and Regulations (approximately 18% of exam)Laws of Agency (approximately 12% of exam)Valuation and Market Analysis (approximately 12% of exam)Financing (approximately 13% of exam)Transfer of Property (approximately 9% of exam)Practice of Real Estate and Mandated Disclosures (approximately 24% of exam)Contracts (approximately 12% of exam)Notice that the "practice" section of the exam consists of about one-quarter of the test! (About 40 questions!)Study hard!
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Livescan fingerprinting is an electronic method of capturing and distributing fingerprints. The Department of Real Estate requires that all applicants for a salesperson or broker license have a Livescan Read more...
Livescan fingerprinting is an electronic method of capturing and distributing fingerprints. The Department of Real Estate requires that all applicants for a salesperson or broker license have a Livescan done and pass a background check by the Department of Justice and the FBI. In a previous blog, I talked about criminal history and a real estate license. Just a quick reminder that you have to have a Livescan done to get a license. The form that you would use to get this can be found hereAlso, a list of Livescan service providers can be found hereIt is my experience that a lot of the centers on that list have moved or are no longer in business, so I would call ahead and talk to someone before you go. Some of the centers require an appointment, so be sure to check them out before you drive out. As always, I am here to help. Contact me with any questions!Good luck!
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Well, the short answer to this is - it depends. First of all, I am not the Department of Real Estate and have no idea whether or not the DRE will approve or deny YOUR specific circumstance. However, Read more...
Well, the short answer to this is - it depends. First of all, I am not the Department of Real Estate and have no idea whether or not the DRE will approve or deny YOUR specific circumstance. However, there are a few hard and fast rules that reign true:1. DISCLOSE, DISCLOSE, DISCLOSE! The DRE will find out out of you have omitted some portion of your background. This may be construed as attempting to obtain a license by fraud and could result in your license application being denied.2. If the DRE does grant you a license, they may require your supervising broker to sign something stating that they are aware of your past. 3. From the DRE Guide to Obtaining and Maintaining a license"In the event you have one or more offenses to report, please take extra care to disclose all actions and convictions regardless of how long ago they occurred, or whether or not a conviction has been expunged under Penal Code Section 1203.4, or a similar statute. The failure to disclose charges/convictions will result in substantial delays in the processing of your application and may also result in denial of the license application."So even things that were expunged from your record must be disclosed to the DRE.Bottom line: When in doubt, disclose!
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If you are a licensed attorney in California you are exempt from the college-level course requirements in order to obtain a real estate salesperson or California brokers license.
In other words, you Read more...
If you are a licensed attorney in California you are exempt from the college-level course requirements in order to obtain a real estate salesperson or California brokers license.
In other words, you can pop right into the sales license exam without needing to complete Real Estate Principles, Real Estate Practice, or the elective classes that are normally required. Evidence of admission to practice Law in California must be furnished, such as a photocopy of both sides of a California State Bar membership card.
However, the requirements for an attorney to qualify to take the broker exam are different. If you are a licensed attorney in California, you must have two years full-time licensed sales experience within the last five years or have at least two years real estate related experience within the last five years related to your law practice. Before applying for the broker exam, licensed attorneys will need to submit a RE 227 Equivalent Experience Verification document form outlying this experience along with their brokerexam or broker exam/license combination application.
ADHI Schools has had many licensed attorneys in California take our program and obtain either a sales or broker license.
By the way, nothing waives the requirements for either real estate exam itself. All real estate license applicants regardless of experience or education must pass the state exam for either license.
One last tip - you can't have both the sales and broker license at the same time in California - it's one or the other.
Got questions? Call ADHI Schools, LLC at 888 768 5285 or visit adhischools.com for more information!
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