ORIGINAL REAL ESTATE BROKER LICENSE

ORIGINAL REAL ESTATE BROKER LICENSE


The individual broker license entitles a natural person to conduct a brokerage business under his/her own name or, if so licensed, under a fictitious business name.
The applicant for an original real estate broker license must: (l) be at least 18 years old; (2) have had previous experience and education as required by law; (3) be honest and truthful; and (4) pass the qualifying examination. The Real Estate Law requires that every applicant for a real estate broker license must either have been actively engaged as a real estate salesperson for at least two years full time during the five years immediately preceding the application or prove to the satisfaction of the Commissioner that applicant has general real estate experience which would be the equivalent of two years of full-time experience as a salesperson completed within a similar time period, and must have successfully completed the following statutory three semester-unit (or quarter equivalent) college-level courses:

1. Real Estate Practice 6. And three from the following:
2. Legal Aspects of Real Estate Real Estate Principles
3. Real Estate Finance Business Law
4. Real Estate Appraisal Property Management
5. Accounting or Real Estate Economics Real Estate Office Administration
Escrows
Advanced Legal Aspects of Real Estate
Advanced Real Estate Finance
Advanced Real Estate Appraisal
Mortgage Loan Brokering and Lending
Computer Applications in Real Estate
Common Interest Developments

NOTE: If the applicant completes both Accounting and Economics, only two courses from Group 6 are required.

As an alternative to the experience requirements, the applicant may submit evidence of graduation from a four-year university or college accredited by the Western Association of Schools and Colleges or similar regional accrediting agency recognized by the United States Department of Education, and completion of the required real estate courses.
Some private vocational schools offer these required courses, both in residence (classroom) and through correspondence study. However, only those private schools formally approved by DRE may offer these courses for DRE credit.


Experience Qualification


Many candidates for a real estate broker license base their claims of qualification on two years of experience as a licensed real estate salesperson in California. However, even though DRE’s records show the applicant has been licensed for two or more years as a salesperson, that fact does not in itself qualify the applicant. Evidence that an applicant has worked full time as a salesperson for at least two years must be provided by the applicant’s employing broker(s), using an Employment Verification (RE 226). The completed verification forms must be mailed with the examination application. If applicant is unable to obtain certification of experience from the employing broker, experience may be corroborated on an Employment Certification (RE 228), by at least two other individuals who were employed in a related real estate field and were in a position to verify the applicant’s duties and employment dates, etc. An explanation should be included as to why the employing broker of record cannot verify the salesperson’s experience.
The Employment Verification and Employment Certification forms should include sufficient detail to enable DRE to perform an evaluation. DRE may conduct further inquiry in order to evaluate claimed experience.


Alternate Qualification Methods


A claim of equivalent experience, in lieu of the two years of salesperson experience required for the broker examination, may be based on any combination of salesperson experience, equivalent real estate related experience and education, which, considered as a whole, would satisfy the intent of the law.
Claims of equivalent real estate related experience may be made by submitting a completed Equivalent Experience Verification (RE 227). This form must be certified by employers or other responsible parties who have been in a position to verify the applicant’s employment status. The verification must include a clear, detailed description of the applicant’s duties/activities, as they relate to the general field of real estate. Further information concerning the types of equivalent experience which are considered acceptable for qualification purposes is contained in the most recent edition of the Instructions to License Applicants pamphlet that may be obtained at any DRE office or on-line at DRE’s web site.
If an applicant has been licensed as a real estate salesperson in another state, RE 226 must be used to verify previous salesperson experience. If an applicant has been licensed as a real estate broker in another state, two responsible parties, such as other real estate brokers, title officers or loan officers, who have been in a position to verify the applicant’s employment status, must complete RE 228. The verification must include a clear, detailed description of the applicant’s duties/activities and indicate how the verifier is aware of the applicant’s employment record.
Claims of qualification based on a college degree with specialization in subjects relating strictly to real estate must be supported by official transcripts of educational records.
In some instances, applicants may be in a position to claim qualification by combining certain experience and education. For example, the applicant may have been actively engaged as a licensed salesperson in California for one year, had additional experience as an escrow officer or a loan officer, and also had certain education relating to real estate. In such cases, a combination claim for experience can be made.
All claims of experience qualification for real estate broker license, including those based upon two years of full-time work as a licensed salesperson in California, are individually evaluated. The Commissioner decides whether the claim of qualification meets the Commissioner’s standards. If the claim is approved, the candidate is scheduled for examination. If rejected, the candidate may eventually qualify for a real estate broker license examination by working the required time as a salesperson. Often a claim of qualification is rejected but the applicant is given a certain amount of credit toward two years as a salesperson. Care in preparing the claim of

qualification and the required verification forms will facilitate the experience review process. DRE may conduct further inquiry when evaluating experience.
The applicant who fails to qualify for a license because of lack of experience and/or educational prerequisites is not entitled to a refund of the fee paid with the application. The fee, however, remains to the applicant’s credit for two years.


Examination for Original Broker License


All applicants for an original broker license must take and pass a written qualifying examination before the license can be granted.
The appropriate fee must be submitted with a Broker Examination Application (RE 400B) and the applicant’s evidence of education and experience An applicant failing the examination may apply online at DRE’s web site for reexamination and must pay the appropriate fee. There is no limit to the number of reexaminations which may be taken but an application is valid for only two years. A person who fails to pass the examination during this two-year period must file a new application. The application must include documentation which supports the qualification of the applicant.
If an applicant does not take the examination on the date scheduled, or wishes to change the scheduled date, a new examination may be scheduled online at DRE’s web site or by completing, signing, and returning the Broker Examination Schedule Notice (RE 401B) to DRE. The rescheduling request may also be made on a Broker Examination Change Application (RE 415B). All requests for a new examination date must be submitted with the appropriate rescheduling fee.
An applicant who passes the examination is notified and may apply for the original broker license.


Combined Exam/License Application


Individuals may apply and pay for their real estate broker examination and license at the same time by submitting one application and both the license and examination fee. Applicants must complete the Broker Exam/License Application (RE 436), which may be obtained from the DRE web site, and submit the required combined license and examination fee, listed on the form. Broker examination applicants must submit all education and experience requirements with their application. Once submitted, the fee may not be refunded or transferred to another application. The applicant must successfully pass the examination within two years of the date the application is filed. If those steps are not completed within the two-year time limit, the application and fee will lapse. Applicants who do not hold a salesperson license, must submit a completed State Public Benefits Statement (RE 205) and proof of legal presence, such as a copy of a birth certificate or passport, with their application.
Applicants who do not currently hold a salesperson license must also be fingerprinted using a Live Scan service provider. Applicants may get their fingerprints taken at the time they submit their exam/license application or any time thereafter; however, results from the fingerprint process must still be received before a real estate license can be issued. Fingerprint processing fees are not refundable under any circumstances, including failure to qualify by examination for a license.
Missing requirements may be submitted anytime within a two-year period following DRE receipt of a combination application and fee. Additionally, if a significant period of time elapses between the time the examination/license application is filed and the date the examinee passes the test, the Department will require a written update of pertinent information before the license can be issued.