California Real Estate Licenses

Like many other licensed professionals, real estate agents are subject to the rules and regulations of the state licensing board, and may be facing disciplinary action if convicted of a crime.

For example, anyone working for a corporate real estate brokerage, including officers, directors, and anyone owning more than 10% of the firm, has a duty to report any changes in “background information” to their corporate representative, who must then report it to the Department of Real Estate.

“Background information” is defined in Section 2746 of Title 10 of the California Code of Regulations. to include denial of a professional license, unlicensed practice of realty, and conviction of a crime substantially related to qualifications, functions or duties of a licensee. In determining whether a conviction falls under the duty to report and what if any disciplinary action should be taken, Section 2910 of the Code defines “substantially related” to include the following:

1. The fraudulent taking, obtaining, appropriating or retaining of funds or property belonging to another person.
2. Counterfeiting, forging or altering on of an instrument or the uttering of a false statement.
3. Willfully attempting to derive a personal financial benefit through the nonpayment or underpayment of taxes, assessments or levies duly imposed upon the licensee or applicant by federal, state or local government.
4. The employment of bribery, fraud, deceit, falsehood or misrepresentation to achieve an end.
5. Sexually related conduct affecting a person who is an observer or non-consenting participant in the conduct or convictions which require registration pursuant to the provisions of Section 290 of the Penal Code.
6. Willfully violating or failing to comply with a provision of Division 4 of the Business and Professions Code of the State of California.
7. Willfully violating or failing to comply with a statutory requirement that a license, permit or other entitlement be obtained from a duly constituted public authority before engaging in a business or course of conduct.
8. Doing of any unlawful act with the intent of conferring a financial or economic benefit upon the perpetrator or with the intent or threat of doing substantial injury to the person or property of another.
9. Contempt of court or willful failure to comply with a court order.
10. Conduct which demonstrates a pattern of repeated and willful disregard of law.
11. Two or more convictions involving the consumption or use of alcohol or drugs when at least one of the convictions involve driving and the use or consumption of alcohol or drugs.

The Code goes on to say that even convictions for attempted or solicited crimes can be used against a licensee as the basis for discipline or license revocation. Once your license has been restricted, suspended, or revoked due to criminal conviction, you must wait at least two years to even reapply for your license; if your history demonstrates a pattern of criminal behavior or if the conviction is deemed particularly related to the profession, you may have to wait even longer than that. In addition, the criteria for “rehabilitation” following a conviction include everything from payment of fines and restitution, to changes in attitude and social circles, stability of family life, and community or church involvement.

The State of California and the California Department of Real Estate has a strong interest in maintaining high standards for licensed professionals, and a criminal conviction or even allegation can have devastating consequences without proper preparation and representation. As soon as you have been arrested or charged in a criminal case, it is of the utmost importance that you contact qualified legal counsel to take the immediate steps required to protect your most valuable assets. At Spiga & Associates, we recognize the value of your license to practice real estate, and we are here to help build you a fortress of defense to guard both your freedom and your right to make a living.