CORPORATE REAL ESTATE LICENSE

CORPORATE REAL ESTATE LICENSE


In some cases, brokers will elect to do business as a corporation. A corporation may be licensed as a real estate broker, provided at least one officer of the corporation is a duly qualified real estate broker willing to act as the corporation’s responsible designated broker-officer. The corporation must submit, the appropriate corporation license application and fee, and a Certificate of Status issued by the Secretary of State within 30 days prior to the date the application is filed.



Broker-Officers


Each broker who is to act for and on behalf of a corporation as a broker-officer must submit a completed Corporation License Application and the appropriate license fee. A license as an individual broker and a license as a broker officer are separate entities and the status is not transferable from one to the other. It is possible for an individual broker to be issued a broker-officer license for more than one corporation. Also, a corporation may be issued any number of broker-officer licenses, in addition to the designated or primary broker-officer for the corporation. However, a Corporation License Application and license fee must be submitted for each corporation broker-officer license requested. The status as a broker-officer of one corporation is not transferable to being a broker-officer of another corporation.
An individual who is qualified to apply for a broker license may be issued a broker-officer license for a corporation without obtaining an individual broker license. That person would only be allowed to conduct licensed activities on behalf of the corporation.
Broker-officer applicants who currently hold an officer license for a corporation but have never obtained an individual broker license will be required to furnish evidence of completion of the current continuing education requirements to renew their officer license, apply for a new corporation broker-officer license, or apply for an individual license.
Corporation Background Statement
The designated officer of an original corporation license applicant must submit a completed Corporation Background Statement (RE 212) for himself or herself and for each director, the chief executive officer, the president, first level vice presidents, secretary, chief financial officer, subordinate officers with responsibility for forming policy of the corporation and for each natural person owning or controlling more than 10% of the corporation’s shares, if that person has been subject to one of the conditions listed in subdivision (a) of Regulation 2746. (See Regulation 2746.) Also, a RE 212 may be required whenever there is a change in corporation officers. If none of the new officers have been a subject of any of the items enumerated in the Regulation, a RE 212 is not needed.


Certificate of Qualification - Foreign Corporation


In the case of a foreign corporation, a Certificate of Qualification or a Certificate of Good Standing (Foreign Corporation) is required, executed within thirty days prior to the date the corporation submits its application.


Fictitious Business Name (dba)


To use any name other than its own, the corporation must submit a copy of a Fictitious Business Name Statement as filed with the county clerk’s office in the county where the corporation’s principal place of business is located. (Section 10159.5 of the Code)


Salesperson Licensed to Corporation


Salespersons may be placed in the employ of a corporation through the eLicensing system at DRE’s web site. Alternatively, the corporation must submit a completed Salesperson Change Application (RE 214) for each currently licensed salesperson to be placed in the employ of the corporation.


Replacing the Designated Broker-Officer


The designated broker-officer of a corporation may be replaced by another qualified broker for the balance of the license period by submitting: (a) a completed Corporation License Application (RE 201) and Corporation Background Statement (RE 212); and (b) a copy of the personally signed resignation of the officer leaving the firm, or a copy of the Resolution of the Board of Directors with the corporate seal, or a signed statement giving the date of death of the currently licensed designated broker-officer. To keep the corporation continuously licensed, the RE 201, RE 212 (if needed) and the resignation documentation must be received in the same package.


Adding a New Officer as the Designated Officer


A new designated officer may be licensed upon receipt of a completed Corporation License Application (RE 201), Corporation Background Statement (RE 212-if needed), the appropriate license fee and statement that the currently designated broker-officer will remain with the firm as an “additional” officer. Broker-officer applicants without individual broker status will be required to furnish evidence of completion of appropriate continuing education requirements, attained within the previous four-year period. DRE will issue branch licenses to match the term of the new “designated” officer without any additional fee.



Change of Designated Officer when Both Currently Hold a Broker-Officer License with Corporation


To effect this change, the corporation must submit a completed Corporation Change Application (RE 204a) and Corporation Background Statement (RE 212 if needed). No new license certificate will be issued to either officer. However, if the license terms differ, new branch office licenses will be issued.


Change of Main Office or Mailing Address


Submit a completed Corporation Change Application (RE 202A) signed by a licensed officer.


Change of Corporation Name


Submit a completed Corporation Change Application (RE 20Aa) signed by a licensed officer and a copy of the Amended Articles of Incorporation reflecting the name change and bearing the endorsed or filed stamp of the California Secretary of State. If the corporation is currently licensed with a fictitious business name, a copy of the refiled Fictitious Business Name Statement showing the new corporation name as registrant must be submitted.