2720. Minimum Age.
A real estate broker license shall not be issued to a person who has not attained the age of 18 years.

2724. Minimum Requirements for Supervision Under Section 10131.01.
A broker may delegate the responsibility and authority to supervise and control the activities of nonlicensed persons
acting under Section 10131.01:

(a) To a real estate broker acting in the capacity of a salesperson to the responsible broker and who has entered into a
written agreement relating thereto with the responsible broker.
(b) To a real estate salesperson licensed to the broker if the salesperson has accumulated at least two years full-time
experience as a salesperson licensee during the immediately preceding five-year period and has entered into a written
agreement with the broker with respect to the delegation of responsibility.

2725. Broker Supervision.
A responsible broker shall exercise reasonable supervision over the activities of their salespersons or broker associates
acting in the capacity of a salesperson. Reasonable supervision includes, as appropriate, the establishment of policies,
rules, procedures and systems to review, oversee, inspect and manage:
(a) Transactions requiring a real estate license.
(b) Documents which may have a material effect upon the rights or obligations of a party to the transaction.

(c) Filing, storage and maintenance of such documents.
(d) The handling of trust funds.
(e) Advertising of any service for which a license is required.

(f) Familiarizing salespersons with the requirements of federal and state laws relating to the prohibition of
discrimination.

(g) Regular and consistent reports of licensed activities of salespersons or broker associates acting in the capacity of a
salesperson.

The form and extent of such policies, rules, procedures and systems shall take into consideration the number of
salespersons or broker associates acting in the capacity of a salesperson retained and the number and location of branch
offices.
A responsible broker shall establish a system for monitoring compliance with such policies, rules, procedures and
systems. A responsible broker may use the services of associate brokers and salespersons to assist in administering the
provisions of this section so long as the responsible broker does not relinquish overall responsibility for supervision of
the acts of salespersons or broker associates acting in the capacity of a salesperson retained by the responsible broker.

2725.5. Broker Responsibility Regarding Debarred Persons.
Business and Professions Code Section 10087 authorizes the Commissioner to debar licensed or unlicensed persons
from any position of employment with, or management or control of, a real estate business. Such debarred persons are
further prohibited by Section 10087 from participating in any business activity of a real estate salesperson or a real
estate broker and from engaging in any real estate-related business activity on the premises where a real estate
salesperson or real estate broker is conducting business.
A responsible broker is responsible for screening the broker’s retained staff and employees, both licensed and
unlicensed, for compliance with Section 10087. A responsible broker is responsible for screening regular business
associates engaging in any real estate-related business activity on the responsible broker's premises, for compliance
with Section 10087. Such broker responsibility includes, but is not limited to, quarterly review of the Department’s
online listing of debarred persons and of the listing of disciplinary actions published in the Department’s quarterly
bulletin. A responsible broker who becomes aware of violations of Section 10087 is responsible for reporting such
violations to the Department.

2726. Broker-Salesman Relationship Agreements.
Every real estate broker shall have a written agreement with each of his salesmen, whether licensed as a salesman or as
a broker under a broker-salesman arrangement. The agreement shall be dated and signed by the parties and shall cover
material aspects of the relationship between the parties, including supervision of licensed activities, duties and
compensation.



2728. Brokers and Salespersons Performing Licensed Activities Through a Partnership
While California law does not permit the issuance of real estate broker licenses to partnerships, real estate brokers may,
pursuant to section 10137.1 of the Business and Professions Code, form partnerships that can perform acts requiring a
real estate broker license provided that every partner through whom the partnership performs such acts is a licensed real
estate broker.

Where a real estate broker is a member of such a partnership operating as a real estate brokerage business, a salesperson
who is licensed to that broker and properly supervised and working under a broker-salesman agreement, may perform
acts for which a real estate license is required for and on behalf of the partnership.
A real estate broker who is a member of such a partnership may conduct business from a branch office of the partnership
without applying for or acquiring a branch office license in his or her own name, provided another real estate broker
member of the partnership has a current branch office license for and at the location in question.

2728.5. Broker/Salesman Operating from Branch Office.
A real estate broker acting in the capacity of a salesperson to another broker under written agreement may perform acts
for which a license is required on behalf of the responsible broker at any place of business at which the responsible
broker is currently licensed to perform acts for which a real estate license is required.
Note: Authority cited: Sections 10080 and 11001, Business and Professions Code. Reference: Sections 10162 and
10163, Business and Professions Code.
2729. Record Retention
(a) A real estate broker may use electronic image storage media to retain and store copies of all listings, deposit receipts,
canceled checks, trust records and other documents executed by the broker or obtained by the broker in connection with
any transaction for which a real estate broker license is required, provided the following requirements are satisfied:
(1) The electronic image storage shall be nonerasable “write once, read many” (“WORM”) that does not allow
changes to the stored document or record.
(2) The stored document or record is made or preserved as part of and in the regular course of business.
(3) The original record from which the stored document or record was copied was made or prepared by the broker
or the broker's retained staff or employees at or near the time of the act, condition or event reflected in the record.
(4) The custodian of the record is able to identify the stored document or record, the mode of its preparation, and
the mode of storing it on the electronic image storage.
(5) The electronic image storage system contains a reliable indexing system that provides ready access to a desired
document or record, appropriate quality control of the storage process to ensure the quality of imaged documents
or records, and date ordered arrangement of stored documents or records to assure a consistent and logical flow of
paperwork to preclude unnecessary search time.
(6) Records copied and stored under this section shall be retained for three years pursuant to Section 10148 of the
Code.
(b) A broker will maintain at the broker's office a means of viewing copies of documents or records stored
pursuant to this section. A broker shall provide, at the broker's expense, a paper copy of any document or
record requested by the Department.2729.5. Record Retention – Uniform Electronic Transactions Act.
(a) A real estate broker who obtains documents in connection with any transaction for which a real estate broker license
is required when such documents contain an electronic signature pursuant to the Uniform Electronic Transactions Act
(Section 1633.1 et seq. of the Civil Code) or the Electronic Signatures in Global and National Commerce Act shall
retain a copy of such documents, including the electronic signatures. The broker shall retain a copy of such documents
by: 1) Causing a paper copy of the document to be made or 2) By using electronic image storage media pursuant to
Section 2729. The broker may retain copies of such documents at a location other than the broker's place of business.
(b) A broker shall maintain at the broker's office a means of viewing copies of documents or records stored pursuant to
this section. After notice, such documents or records shall be made available for examination, inspection, and copying
by the Commissioner or his or her designated representative during regular business hours. The broker shall provide, at
the broker's expense, a paper copy of any document or record requested by the Bureau.
(c) Nothing in this section shall be construed to permit a broker to avoid compliance with Section 10148 of the Code.

2729.5. Record Retention – Uniform Electronic Transactions Act.
(a) A real estate broker who obtains documents in connection with any transaction for which a real estate broker license
is required when such documents contain an electronic signature pursuant to the Uniform Electronic Transactions Act
(Section 1633.1 et seq. of the Civil Code) or the Electronic Signatures in Global and National Commerce Act shall
retain a copy of such documents, including the electronic signatures. The broker shall retain a copy of such documents
by: 1) Causing a paper copy of the document to be made or 2) By using electronic image storage media pursuant to
Section 2729. The broker may retain copies of such documents at a location other than the broker's place of business.
(b) A broker shall maintain at the broker's office a means of viewing copies of documents or records stored pursuant to
this section. After notice, such documents or records shall be made available for examination, inspection, and copying
by the Commissioner or his or her designated representative during regular business hours. The broker shall provide, at
the broker's expense, a paper copy of any document or record requested by the Bureau.

(c) Nothing in this section shall be construed to permit a broker to avoid compliance with Section 10148 of the Code.
Article 5. Licenses Under Fictitious Names