Amended in Assembly May 8, 2014

Amended in Assembly April 23, 2014

Amended in Assembly April 7, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2540


Introduced by Assembly Member Dababneh

February 21, 2014


An act to amend Sections 10150, 10151, and 10162 of the Business and Professions Code, relating to real estate.

LEGISLATIVE COUNSEL’S DIGEST

AB 2540, as amended, Dababneh. Real estate licenses.

(1) Under the Real Estate Law, the California Bureau of Real Estate, which is headed by the Real Estate Commissioner, issues licenses to and regulates real estate brokers and real estate salespersons. Existing law authorizes the commissioner to prescribe the format and content of the written applications for the real estate broker examination, broker license, and salesperson examination.

This bill would authorize the commissioner to additionally prescribe the format and content of the application for the real estate salesperson license, and would require that each of those applications for an examination or license, or both, require the applicant to providebegin delete a valid email address and telephone numberend deletebegin insert valid contact informationend insert at which the bureau may contact the applicant.

(2) Existing law requires every licensed real estate broker to have and maintain a definite place of business in the state that serves as his or her office for the transaction of business, displays his or her license, and where he or she holds personal consultations with a client. Any person, including officers, directors, agents, or employees of corporations, who willfully violate or knowingly participate in the violation of these provisions is guilty of a misdemeanor punishable by a fine not exceeding $10,000, or by imprisonment in the county jail not exceeding 6 months, or by both that fine and imprisonment.

This bill would require every real estate broker and salesperson licensee to provide the commissioner with his or her current office or mailing address, current telephone number, and current email address that he or she uses to perform any activity that requires a real estate license, and at which the bureau may contact the licensee, and to update that information no later than 30 days after making a change. Because a violation of these requirements would be a crime, the bill would impose a state-mandated local program.

(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 10150 of the Business and Professions
2Code
is amended to read:

3

10150.  

(a) Application for the real estate broker license
4examination shall be made in writing to the commissioner. The
5commissioner may prescribe the format and content of the broker
6examination application. The application for the broker
7examination shallbegin delete require an applicant to provide a valid email
8address and telephone numberend delete
begin insert include valid contact informationend insert
9 at which the bureau may contact the applicant and shall be
10accompanied by the real estate broker license examination fee.

11(b) Persons who have been notified by the commissioner that
12they passed the real estate broker license examination may apply
13for a real estate broker license. A person applying for the broker
14examination may also apply for a real estate broker license.
15However, a license shall not be issued until the applicant passes
16the real estate broker license examination. If there is any change
17to the information contained in a real estate broker license
P3    1application after the application has been submitted and before the
2license has been issued, the commissioner may require the applicant
3to submit a supplement to the application listing the changed
4information.

5(c) Application for the real estate broker license shall be made
6in writing to the commissioner. The commissioner may prescribe
7the format and content of the broker license application. The
8application for the real estate broker license shall begin delete require an
9applicant to provide a valid email address and telephone numberend delete

10begin insert include valid contact informationend insert at which the bureau may contact
11the applicant and shall be accompanied by the appropriate fee.

12(d) Application for an endorsement to act as a mortgage loan
13originator, as defined in Section 10166.01, shall be made either
14electronically or in writing as directed by the commissioner. The
15 commissioner may prescribe the format and content of the
16mortgage loan originator endorsement application, which shall
17meet the minimum requirements for licensing of a mortgage loan
18originator, pursuant to the Secure and Fair Enforcement for
19Mortgage Licensing Act of 2008 (Public Law 110-289).

20

SEC. 2.  

Section 10151 of the Business and Professions Code
21 is amended to read:

22

10151.  

(a) Application for the real estate salesperson license
23examination shall be made in writing to the commissioner. The
24commissioner may prescribe the format and content of the
25salesperson examination application. The application for the
26salesperson examination shallbegin delete require an applicant to provide a
27valid email address and telephone numberend delete
begin insert include valid contact
28informationend insert
at which the bureau may contact the applicant and
29shall be accompanied by the real estate salesperson license
30examination fee.

31(b) Persons who have been notified by the commissioner that
32they passed the real estate salesperson license examination may
33apply for a real estate salesperson license. A person applying for
34the salesperson examination may also apply for a real estate
35salesperson license. However, a license shall not be issued until
36the applicant passes the real estate salesperson license examination.
37If there is any change to the information contained in a real estate
38salesperson license application after the application has been
39submitted and before the license has been issued, the commissioner
P4    1may require the applicant to submit a supplement to the application
2listing the changed information.

3(c) (1) The commissioner may prescribe the format and content
4of the real estate salesperson license application. The application
5for the real estate salesperson license shallbegin delete require the applicant
6to provide a valid email address and telephone numberend delete
begin insert include
7valid contact informationend insert
at which the bureau may contact the
8applicant.

9(2) An application for the real estate salesperson license
10examination or for both the examination and license that is received
11by the commissioner on or after October 1, 2007, shall include
12evidence or certification, satisfactory to the commissioner, of
13successful completion at an accredited institution of a
14three-semester unit course, or the quarter equivalent thereof, or
15successful completion of an equivalent course of study as defined
16in Section 10153.5begin delete,end delete in real estate principles as well as the successful
17completion at an accredited institution of a course in real estate
18practice and one additional course set forth in Section 10153.2,
19other than real estate principles, real estate practice, advanced legal
20aspects of real estate, advanced real estate finance, or advanced
21real estate appraisal. The applicant shall provide this evidence or
22certification to the commissioner prior to taking the real estate
23salesperson license examination.

24(d) The commissioner shall waive the requirements of this
25section for the following applicants:

26(1) An applicant who is a member of the State Bar of California.

27(2) An applicant who has qualified to take the examination for
28an original real estate broker license by satisfying the requirements
29of Section 10153.2.

30(e) Application for endorsement to act as a mortgage loan
31originator, as defined in Section 10166.01, shall be made either
32electronically or in writing as directed by the commissioner. The
33commissioner may prescribe the format and the content of the
34mortgage loan originator endorsement application, which shall
35meet the minimum requirements for licensing of a mortgage loan
36originator, pursuant to the Secure and Fair Enforcement for
37Mortgage Licensing Act of 2008 (Public Law 110-289).

38

SEC. 3.  

Section 10162 of the Business and Professions Code
39 is amended to read:

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10162.  

(a) Every licensed real estate broker shall have and
2maintain a definite place of business in the State of California that
3serves as his or her office for the transaction of business. This
4office shall be the place where his or her license is displayed and
5where personal consultations with clients are held.

6(b) A real estate license does not authorize the licensee to do
7business except from the location stipulated in the real estate
8license as issued or as altered pursuant to Section 10161.8.

9(c) (1) Every real estate broker and salesperson licensee shall
10provide to the commissioner his or her current office or mailing
11address, a current telephone number, and a current email address
12that he or she maintains or uses to perform any activity that requires
13a real estate license, at which the bureau may contact the licensee.

14(2) Every real estate broker and salesperson licensee shall inform
15the commissioner of any change to his or her office or mailing
16address, telephone number, or email address no later than 30 days
17after making the change.

18

SEC. 4.  

No reimbursement is required by this act pursuant to
19Section 6 of Article XIII B of the California Constitution because
20the only costs that may be incurred by a local agency or school
21district will be incurred because this act creates a new crime or
22infraction, eliminates a crime or infraction, or changes the penalty
23for a crime or infraction, within the meaning of Section 17556 of
24the Government Code, or changes the definition of a crime within
25the meaning of Section 6 of Article XIII B of the California
26Constitution.



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