2904. Disclosure of Compensation for Obtaining Financing.
It shall constitute misrepresentation under Section 10176(a) of the Code for a real estate licensee who acts as the agent
for either party in a transaction for the sale, lease or exchange of real property, a business opportunity or a mobilehome
as described in Section 10131.6 of the Code, and who receives compensation, or who anticipates receiving
compensation, from a lender in connection with the securing of financing for the transaction, to fail to disclose to both
parties, prior to the closing of the transaction, the form, amount and source of compensation received or expected.

2905. Pest Control Documentation.
In a real estate transaction subject to the provisions of Section 1099 of the Civil Code, the real estate broker acting as
agent for the seller in the transaction shall effect delivery of the inspection report, certification and the notice of work
completed, if any, to the buyer in accordance with said section.

If more than one real estate broker licensee is acting as an agent of the seller in the transaction, the broker who has
obtained the offer made by the buyer shall effect delivery of the required documents to the buyer unless the seller has
given written directions to another real estate broker licensee acting as agent of the seller in the transaction to effect
delivery.

If the agent cannot obtain the required documents to deliver to the buyer and does not have written assurance from the
buyer that all of said documents have been received, the agent shall advise the buyer in writing of the buyer’s rights
under Section 1099.
The broker shall maintain a record of the action taken to effect compliance with this regulation in accordance with
Section 10148 of the Business and Professions Code.
Article 18.3. Citations

2907.1. Citation - Order of Correction and Assessment of Fine.
(a) A citation issued pursuant to Business and Professions Code Section 10080.9 will address a violation or violations
of the Real Estate Law and Subdivided Lands Law (Division 4 of the Business and Professions Code), and any
regulations adopted pursuant to those laws. The Commissioner is authorized to issue a citation containing an order of
correction and/or assessing a fine for the violation of the laws referred to above.
(b) A citation may be issued to a person or entity, including partnerships, corporations, or associations, whether licensed
or unlicensed by the Bureau.
(c) The citation shall be in writing and shall describe with particularity the nature and facts of the violation, including a
reference to the statute or regulation alleged to have been violated.
(d) Service of a citation shall be made in accordance with the provisions of Sections 8311 and 11505(c) of the
Government Code. Service of a citation issued under Business and Professions Code Section 10080.9 may be made by



certified mail at the address of record of a licensee cited, or to the last known mailing, business, or residence address of
an unlicensed person or entity cited.
(e) The time allowed to comply with an order of correction shall be specified in the citation, taking into account the
nature of the correction required. Failure to correct the violation shall be grounds for further discipline under Section
10177(d) of the Code.
(f) The cited person or entity may request an extension of the time to comply with the order if the cited person or entity
is unable to complete the correction or pay the fine within the time set forth in the citation. The request must be made
in writing, within the time set forth for correction or payment of fine, and must set forth extenuating circumstances and
good cause warranting the extension. Determination of an extension is within the discretion of the Commissioner.

2907.2. Citation - Applicability of Citation and Amount of Administrative Fine.
(a) When determining whether to apply the citation and fine process in lieu of a formal accusation, and in determining
the amount of the fine assessed, the Commissioner shall take into consideration the following:
(1) The gravity of the violation or violations;
(2) Actual injury or risk of potential harm to consumers as a result of the violation;

(3) Whether the investigation and/or citation addresses multiple violations;
(4) Nature and extent of the person's or entity's history of violations of the Real Estate Law or Subdivided Lands
Law and/or prior disciplinary action by the Bureau;

(5) The extent to which the person or entity has exhibited good faith;
(6) Degree of cooperation with the Bureau's investigation;

(7) Attempts to mitigate any loss, damage, or harm caused by the violation;
(8) Other facts relevant to the violation that present good cause for aggravation or mitigation of a penalty.
(b) Where the person cited holds a real estate license, the total fine assessment in the citation shall not exceed $2,500,
even where a citation lists more than one violation. Each of the violations listed will relate to the same Bureau
investigation.

(c) Where the person cited is an unlicensed person, a citation may issue for each unlicensed act. Before assessing an
administrative fine via citation for a violation of Section 10130, Section 10166.02, or Section 10167.2 of the Business
and Professions Code for an activity or activities requiring a license and/or license endorsement, the Commissioner
shall give due consideration to the gravity of the violation, including, but not limited to, a consideration of the factors
described in subdivision (a), above, and the following factors:
(1) Whether the unlicensed person or entity committed numerous or repeated violations;

(2) Whether the unlicensed person or entity falsely represented that he/she/it was licensed;
(3) Whether the unlicensed person or entity committed any act that would be cause for disciplinary action against a
licensee;
(4) Whether the unlicensed person or entity claimed or received compensation for the acts, and the amount of
compensation claimed or received;

(5) Whether the unlicensed person or entity was previously issued an Order to Desist and Refrain by the Bureau, or
was formerly licensed and/or disciplined as a licensee and reasons why that license is no longer in effect.

2907.3. Appeal of Citation.
(a) The cited person or entity may contest any or all of the following aspects of the citation:

(1) The occurrence of a violation of the Real Estate Law;
(2) Reasonableness of an order of correction;
(3) The period of time allowed for correction;

(4) The amount of an administrative fine assessed in the citation.



(b) Within 30 days after receipt of the citation, the person or entity cited may make a written notification to the
Commissioner that the person or entity intends to request a formal hearing on the citation. The Commissioner may
extend the 30-day period for a written appeal upon the showing of good cause.

(c) The Commissioner's designee shall hold the citation review conference with the person or entity cited within 60 days
from the receipt of the notification of intention to request a formal hearing.
(d) After the citation review conference, the Bureau shall serve notice, in writing to the person or entity cited, regarding
whether the citation remains unchanged, or is amended or dismissed. Such notice shall include information enabling
the person or entity cited to request a formal hearing on the citation in accordance with subdivision (d) of Section
10080.9 of the Code.
(e) If, within 30 days from the receipt of the post-conference notice, the person or entity fails to request a formal hearing
on the citation, the citation and fine shall be deemed final.
(f) The Bureau may seek, pursuant to Section 10106 of the Code, to recover its costs for investigation and enforcement
of a citation should the case proceed to formal hearing.

2907.4. Time for Payment of Administrative Fine for Citation.
(a) An administrative fine assessed pursuant to Section 10080.9 of the Business and Professions Code must be submitted
to the Bureau by the deadline for payment stated on the citation or, if the citation is appealed, no later than 30 calendar
days after (1) the date of receipt of notice following a citation review conference, if such review conference is requested,
or (2) the date of adoption of the decision following a formal hearing, if such hearing is requested. Failure to complete
payment within this time may result in further action as specified by Section 10080.9(f) of the Code, including the
denial of renewal of a real estate license and/or mortgage loan originator license endorsement, and shall be grounds for
further discipline under Section 10177(d) of the Code.

(b) In no event may a real estate license or mortgage loan originator license endorsement be issued, following
application, to a person whose fine remains outstanding or who has not complied with the terms of the citation.

Article 18.5. Substantial Relationship and Rehabilitation Criteria

2910. Criteria of Substantial Relationship.
(a) When considering whether a license should be denied, suspended or revoked on the basis of the conviction of a
crime, or on the basis of an act described in Section 480(a)(2) of the Code, the crime or act may be deemed to be
substantially related to the qualifications, functions or duties of a licensee of the Department within the meaning of
Sections 480 and 490 of the Code if it involves any of the following characteristics:

(1) The fraudulent taking, obtaining, appropriating or retaining of funds or property belonging to another person.
(2) Counterfeiting, forging or altering 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.



(b) The conviction of a crime constituting an attempt, solicitation or conspiracy to commit any of the above enumerated
acts or omissions may also be deemed to be substantially related to the qualifications, functions or duties of a licensee
of the Department.

(c) The nature and gravity of the offense, the number of years that have elapsed since the date of the offense, and the
nature and duties of a real estate licensee shall be taken into consideration when determining whether to deem an offense
to be substantially related to the qualifications, functions or duties of a licensee. The Department’s consideration of
these factors in assessing the substantial relationship of an offense does not alter, or act in place of, consideration of
these same factors in the Criteria for Rehabilitation.

2910.5. Financial Crimes Regulatory Finding and Definition.
(a) Pursuant to Business and Professions Code Section 480(a)(1)(B), the Department finds that financial crimes
currently classified as a felony and described by the following definition are directly and adversely related to the
fiduciary qualifications, functions, or duties of a licensee.
(b) A financial crime, as referenced in Business and Professions Code Section 480(a)(1)(B), is any crime where the
applicant did one or more of the following in the commission of a criminal offense:
(1) Obtained money, property, or services.

(2) Deprived their victim of money, property, or services.
(3) Engaged in acts involving mishandling of money, property, or services, including but not limited to money
laundering.

(4) Committed an act of fraud, dishonesty, a breach of trust, or money laundering, as those terms are referenced in
the United States Code Service at Title 12, Section 5104(b)(2)(B).

2911. Criteria for Rehabilitation (Denial).
(a) The following criteria have been developed and will be considered by the Bureau pursuant to Section 482 of the
Business and Professions Code for the purpose of evaluating whether or not an applicant is rehabilitated for purposes
of issuance or for reinstatement of a license:

(1) The time that has elapsed since commission of the acts(s) or offense(s):
(A) The passage of less than two years after the most recent criminal conviction or act of the applicant that is a
cause of action in the Bureau’s Statement of Issues against the applicant is inadequate to demonstrate
rehabilitation.
(B) Notwithstanding subdivision (a)(1)(A), above, the two year period may be increased based upon
consideration of the following:
(i) The nature and severity of the crime(s) and/or act(s) committed by the applicant.

(ii) The applicant’s history of criminal convictions and/or license discipline that are “substantially
related” to the qualifications, functions, or duties of a real estate licensee. However, no rehabilitation
shall be required where the sole proven basis or bases for denial of an application is an expunged
conviction as described in Business and Professions Code Section 480(c).
(2) Restitution to any person who has suffered monetary losses through “substantially related” acts or omissions of
the applicant, or escheat to the State of these monies or other properties if the victim(s) cannot be located.

(3) Expungement of criminal convictions.
(4) Expungement or discontinuance of a requirement of registration pursuant to the provisions of Section 290 of the
Penal Code.
(5) Successful completion or early discharge from probation or parole.
(6) Abstinence from the use of controlled substances and/or alcohol for not less than two years if the conduct which
is the basis to deny the Bureau action sought is attributable in part to the use of controlled substances and/or alcohol.
(7) Payment of the fine and/or other monetary penalty imposed in connection with a criminal conviction or quasi-
criminal judgment.



(8) Stability of family life and fulfillment of parental and familial responsibilities subsequent to the conviction or
conduct that is the basis for denial of the Bureau action sought.
(9) Completion of, or sustained enrollment in, formal education or vocational training courses for economic self-
improvement.
(10) Discharge of, or bona fide efforts toward discharging, adjudicated debts or monetary obligations to others.
(11) Correction of business practices resulting in injury to others or with the potential to cause such injury.
(12) Significant or conscientious involvement in community, church or privately-sponsored programs designed to
provide social benefits or to ameliorate social problems.
(13) New and different social and business relationships from those which existed at the time of the conduct that is
the basis for denial of the Bureau action sought.
(14) Change in attitude from that which existed at the time of the conduct in question as evidenced by the following:

(A) Testimony and/or other evidence of rehabilitation submitted by the applicant.
(B) Evidence from family members, friends and/or other persons familiar with applicant's previous conduct and
with his or her subsequent attitudes and/or behavioral patterns.

(C) Evidence from probation or parole officers and/or law enforcement officials competent to testify as to
applicant's social adjustments.

(D) Evidence from psychiatrists or other persons competent to testify with regard to neuropsychiatric or
emotional disturbances.

(E) Absence of subsequent felony convictions, misdemeanor convictions, or other conduct that provides
grounds to discipline a real estate licensee, which reflect an inability to conform to societal rules when
considered in light of the conduct in question.
(b) The SAFE Act, commencing with section 10166.01 of the Business and Professions Code, imposes specific
conditions that apply to applications for a mortgage loan originator license endorsement. Each of the above criteria
notwithstanding, no mortgage loan originator license endorsement shall be issued to an applicant for such license
endorsement where the applicant:
(1) Has been convicted of any felony during the seven year period preceding the date of his or her application for a
license endorsement. This ban is not subject to mitigation or rehabilitation unless the felony conviction has been
expunged or pardoned, or unless the real estate licensee has obtained a certificate of rehabilitation under Chapter
3.5 (commencing with Section 4852.01) of Title 6 of Part 3 of the Penal Code.
(2) Has ever been convicted of a felony where such felony involved an act of fraud, dishonesty, a breach of trust,
or money laundering. This ban is not subject to mitigation or rehabilitation unless the felony conviction has been
expunged or pardoned, or unless the real estate licensee has obtained a certificate of rehabilitation under Chapter
3.5 (commencing with Section 4852.01) of Title 6 of Part 3 of the Penal Code.

2912. Criteria for Rehabilitation (Revocation or Suspension).
The following criteria have been developed and will be considered by the Bureau pursuant to Section 482 of the Business
and Professions Code for the purpose of evaluating whether or not a licensee against whom an administrative
disciplinary proceeding for revocation or suspension of the license has been initiated on account of a crime committed
by the licensee is rehabilitated:
(a) The time that has elapsed since commission of the act(s) or offense(s):
(1) The passage of less than two years after the most recent criminal conviction or act of the licensee that is a cause
of action in the Bureau’s Accusation against the licensee is inadequate to demonstrate rehabilitation.
(2) Notwithstanding subdivision (a)(1), above, the two year period may be increased based upon consideration of
the following:
(A) The nature and severity of the crime(s) and/or act(s) committed by the licensee.
(B) The licensee’s history of criminal convictions and/or license discipline that are “substantially related” to
the qualifications, functions, or duties of a real estate licensee.



(b) Restitution to any person who has suffered monetary losses through “substantially related” acts or omissions of the
licensee, or escheat to the State of these monies or other properties if the victim(s) cannot be located.
(c) Expungement of the conviction(s) which culminated in the administrative proceeding to take disciplinary action.
(d) Expungement or discontinuance of a requirement of registration pursuant to the provisions of Section 290 of the
Penal Code.
(e) Successful completion or early discharge from probation or parole.
(f) Abstinence from the use of controlled substances and/or alcohol for not less than two years if the criminal conviction
was attributable in part to the use of a controlled substance and/or alcohol.
(g) Payment of any fine imposed in connection with the criminal conviction that is the basis for revocation or suspension
of the license.
(h) Correction of business practices responsible in some degree for the crime or crimes of which the licensee was
convicted.
(i) New and different social and business relationships from those which existed at the time of the commission of the
acts that led to the criminal conviction or convictions in question.
(j) Stability of family life and fulfillment of parental and familial responsibilities subsequent to the criminal conviction.
(k) Completion of, or sustained enrollment in, formal educational or vocational training courses for economic self-
improvement.
(l) Significant and conscientious involvement in community, church or privately-sponsored programs designed to
provide social benefits or to ameliorate social problems.
(m) Change in attitude from that which existed at the time of the commission of the criminal acts in question as
evidenced by any or all of the following:
(1) Testimony and/or other evidence of rehabilitation submitted by the licensee.
(2) Evidence from family members, friends and/or other persons familiar with the licensee's previous conduct and
with subsequent attitudes and/or behavioral patterns.
(3) Evidence from probation or parole officers and/or law enforcement officials competent to testify as to licensee’s
social adjustments.
(4) Evidence from psychiatrists, clinical psychologists, sociologists or other persons competent to testify with regard
to neuropsychiatric or emotional disturbances.
(5) Absence of subsequent felony convictions,or misdemeanor convictions, or other conduct that provides grounds
to discipline a real estate licensee, which reflect an inability to conform to societal rules when considered in light
of the conduct in question.

2915. Petitions for Removal of License Discipline Information from Department Internet Posting
(a) This section establishes the process and standards for a petition by a current licensee, as defined by section 10011
of the Code, seeking removal of license discipline information from the Department internet website (“the website”) for
license discipline with an effective date more than ten (10) years prior, pursuant to section 10083.2 of the Code.

(b) A petitioner must submit the following information before the Department considers the petition complete:
(1) A list of petitioner’s criminal convictions since the date of the most recent Department imposed license
discipline for which the petitioner seeks removal from the website, including information on the date of the
court action and identifying the court and jurisdiction of where the conviction occurred.
(A) “Conviction” includes all state, commonwealth, possession, federal, military, and foreign convictions.
“Conviction” includes a verdict of guilty by judge or jury, a plea of guilty, of nolo contendere, or of no
contest. A petitioner must disclose all convictions whether the plea or verdict was set aside, the conviction
against the petitioner was dismissed or expunged, or if the petitioner was pardoned.
(B) For the purposes of this petition process, “Conviction” does not include:



(i) Convictions for infractions.
(ii) Convictions under section 11357(b), (c), (d), or (e) of the Health and Safety Code, or under section
11360(b) of the Health and Safety Code, if more than two years have passed since the date of the conviction.

(2) A list of all petitioner’s professional license discipline since the date that the Department imposed the most
recent license discipline action for which the petitioner seeks removal from the website. Disclosed license
discipline must include surrender of a license whether or not an investigation was pending, whether in California
or elsewhere. Each item on this list must include the date of discipline, the license type, and the jurisdiction in
which the discipline was ordered.
(3) A list of all criminal, civil, or license discipline actions currently pending against petitioner, including the
jurisdiction in which the action is pending.

(4) A signed attestation by the petitioner that petitioner certifies (or declares) under penalty of perjury under the
laws of the State of California that the information provided as part of the petition is true and correct.
(c) A petitioner must submit all the following items before the Department considers the petition complete:

(1) A petitioner must submit the fee amount of $1,275.00 with each petition. This petition fee is deemed earned
by the Department upon receipt and not refundable. A petitioner may petition concurrently, when eligible, for
reinstatement of a license, or for removal of restrictions from a license, without additional charge. A petitioner
may request removal of more than one eligible discipline action from the website with a single petition, without
additional charge.

(2) A petitioner, or a broker-officer of a corporate petitioner, who resides in California must submit a completed
copy of a Live Scan Service Request, Form RE 237 (Rev. 7/18), hereby incorporated by reference, completed
not earlier than 30 days before the date of submission of the petition to the Department.

(d) Section 10083.2 of the Code requires the petitioner to provide evidence of rehabilitation to the Commissioner
indicating the posting of discipline is no longer needed to prevent a credible risk to members of the public. A petitioner
may provide with the petition copies of any documentary evidence that supports petitioner’s claims regarding
rehabilitation, including, but not limited to, documentation evidencing expungement of criminal convictions and
documentation of completed restitution, if applicable.

(e) The criteria for rehabilitation set forth in section 2911 of these Regulations will apply where a petitioner seeks
removal of discipline information from the Department’s website stemming from a Statement of Issues or where
petitioner’s license discipline stems from an original application for a license. The criteria for rehabilitation set forth in
section 2912 of these Regulations will apply where a petitioner seeks removal of discipline information from the
Department’s website stemming from an Accusation, surrender of a license, or other discipline actions ordered by the
Commissioner except for a Statement of Issues.

(f) In evaluating a petition, the Commissioner shall take into consideration other violations that present a credible risk
to the members of the public since the posting of discipline requested for removal. The Commissioner shall consider,
when assessing the credible risk to members of the public utilizing licensed activity by the petitioner, any evidence
gathered from an investigation that reflects on petitioner’s propensity to honestly and fairly engage in activities requiring
a real estate license. For purposes of
(1) Petitioner is currently registered pursuant to the provisions of section 290 of the Penal Code.

(2) Petitioner is currently on probation or parole.
(3) Petitioner’s license is currently subject to restrictions, and a concurrent petition to remove those restrictions
is not granted.

(4) There is any professional license discipline on petitioner’s Department record that is based on an offense
that resulted in harm to a client or other consumer in a real estate transaction.



(5) Petitioner does not make himself or herself reasonably available for interview by the Department
investigator in the course of the petition investigation.
(6) Petitioner has not reimbursed the Department for payments made from the Consumer Recovery Account
associated with a claim filed wherein the petitioner was the judgment debtor.

(g) If the Commissioner grants the petition after investigation, the Commissioner will order removal of the eligible
discipline item or items from the licensee’s entry in the Public License Information feature on the website.
(h) If the Commissioner denies the petition for removal of discipline from the Public License Information website
feature, the petitioner may not submit a new petition for a minimum of one year from the effective date of the denial.

Article 18.6. Monetary Penalty in Lieu of Suspension

2921. Procedures.
(a) Licensees may petition in writing for a monetary penalty at any time after filing of an accusation and before the
effective date of a decision.

(b) No specific form of petition is required. It may contain argument to support a grant of the petition or any other
relevant material the petitioner desires to present to the Commissioner.
(c) Upon receipt of a timely petition, the Commissioner shall grant a stay of the effective date of the decision, if any,
for a period of up to 30 days for the purpose of determining whether the public interest and welfare will be adequately
served if the petition is granted.
(d) Any order granting a petition for a monetary penalty in lieu of a license suspension order shall be published in the
“Real Estate Bulletin.”

2922. Payment.
Payment of a monetary penalty shall be by means of a certified or cashier's check made payable to the Bureau of Real
Estate.
Article 18.7. Standard Proposed Decision Language

2930. Standard Proposed Decision Language.
The following language, terms and conditions will be used, as appropriate, in Proposed Decisions and Decisions of the
commissioner in administrative adjudications conducted pursuant to Sections 11500, et seq. of the Government Code:
1. Revocation:

All licenses and licensing rights of Respondent ____________ under the Real Estate Law are revoked.
2. Revocation With Right to Restricted License - Broker:
All licenses and licensing rights of Respondent ___________ under the Real Estate Law are revoked; provided,
however, a restricted real estate broker license shall be issued to Respondent pursuant to Section 10156.5 of the Business
and Professions Code if Respondent makes application therefor and pays to the Bureau of Real Estate the appropriate
fee for the restricted license within 90 days from the effective date of this Decision. The restricted license issued to
Respondent shall be subject to all of the provisions of Section 10156.7 of the Business and Professions Code and to the
following limitations, conditions and restrictions imposed under authority of Section 10156.6 of that Code:

1. The restricted license issued to Respondent may be suspended prior to hearing by Order of the Real Estate
Commissioner in the event of Respondent's conviction or plea of nolo contendere to a crime which is substantially
related to Respondent's fitness or capacity as a real estate licensee.
2. The restricted license issued to Respondent may be suspended prior to hearing by Order of the Real Estate
Commissioner on evidence satisfactory to the Commissioner that Respondent has violated provisions of the
California Real Estate Law, the Subdivided Lands Law, Regulations of the Real Estate Commissioner or conditions
attaching to the restricted license.
3. Respondent shall not be eligible to apply for the issuance of an unrestricted real estate license nor for the removal
of any of the conditions, limitations or restrictions of a restricted license until two years have elapsed from the
effective date of this Decision.



4. Respondent shall, within nine months from the effective date of this Decision, present evidence satisfactory to
the Real Estate Commissioner that Respondent has, since the most recent issuance of an original or renewal real
estate license, taken and successfully completed the continuing education requirements of Article 2.5 of Chapter 3
of the Real Estate Law for renewal of a real estate license. If Respondent fails to satisfy this condition, the
Commissioner may order the suspension of the restricted license until the Respondent presents such evidence. The
Commissioner shall afford Respondent the opportunity for a hearing pursuant to the Administrative Procedure Act
to present such evidence.
3. Revocation With Right to Restricted License -Salesperson:
All licenses and licensing rights of Respondent ____________ under the Real Estate Law are revoked; provided,
however, a restricted real estate salesperson license shall be issued to Respondent pursuant to Section 10156.5 of the
Business and Professions Code if Respondent makes application therefor and pays to the Bureau of Real Estate the
appropriate fee for the restricted license within 90 days from the effective date of this Decision. The restricted license
issued to Respondent shall be subject to all of the provisions of Section 10156.7 of the Business and Professions Code
and to the following limitations, conditions and restrictions imposed under authority of Section 10156.6 of that Code:
1. The restricted license issued to Respondent may be suspended prior to hearing by Order of the Real Estate
Commissioner in the event of Respondent's conviction or plea of nolo contendere to a crime which is substantially
related to Respondent's fitness or capacity as a real estate licensee.
2. The restricted license issued to Respondent may be suspended prior to hearing by Order of the Real Estate
Commissioner on evidence satisfactory to the Commissioner that Respondent has violated provisions of the
California Real Estate Law, the Subdivided Lands Law, Regulations of the Real Estate Commissioner or conditions
attaching to the restricted license.
3. Respondent shall not be eligible to apply for the issuance of an unrestricted real estate license nor for the removal
of any of the conditions, limitations or restrictions of a restricted license until two years have elapsed from the
effective date of this Decision.
4. Respondent shall submit with any application for license under an employing broker, or any application for
transfer to a new employing broker, a statement signed by the prospective employing real estate broker on a form
approved by the Bureau of Real Estate which shall certify:
(a) That the employing broker has read the Decision of the Commissioner which granted the right to a restricted
license; and
(b) That the employing broker will exercise close supervision over the performance by the restricted licensee
relating to activities for which a real estate license is required.

5. Respondent shall, within nine months from the effective date of this Decision, present evidence satisfactory to the
Real Estate Commissioner that Respondent has, since the most recent issuance of an original or renewal real estate
license, taken and successfully completed the continuing education requirements of Article 2.5 of Chapter 3 of the Real
Estate Law for renewal of a real estate license. If Respondent fails to satisfy this condition, the Commissioner may order
the suspension of the restricted license until the Respondent presents such evidence. The Commissioner shall afford
Respondent the opportunity for a hearing pursuant to the Administrative Procedure Act to present such evidence.
4. Suspension Added to Revocation With Right to a Restricted License:
Any restricted real estate license issued to Respondent pursuant to this Decision shall be suspended for ____ days from
the date of issuance of said restricted license.
5. Professional Responsibility Condition:

Respondent shall, within six months from the effective date of this Decision, take and pass the Professional
Responsibility Examination administered by the Bureau including the payment of the appropriate examination fee. If
Respondent fails to satisfy this condition, the Commissioner may order suspension of Respondent's license until
Respondent passes the examination.

6. Conditional License Condition -Salesperson Only -(Accusation):
Respondent's original real estate salesperson license was issued subject to the provisions of Section 10153.4 of the
Business and Professions Code, and the restricted real estate salesperson license issued to Respondent shall be similarly



limited, to wit: Respondent shall, within eighteen (18) months of the issuance of Respondent's original real estate
salesperson license under the provisions of Section 10153.4 of the Business and Professions Code, submit evidence
satisfactory to the Commissioner of successful completion, at an accredited institution, of a course in real estate practices
and one of the courses listed in Section 10153.2, other than real estate principles, advanced legal aspects of real estate,
advanced real estate finance or advanced real estate appraisal. If Respondent fails to present satisfactory evidence of
successful completion of said courses, the restricted license shall be automatically suspended effective eighteen (18)
months after issuance of Respondent's original real estate salesperson license. Said suspension shall not be lifted until
Respondent has submitted the required evidence of course completion and the Commissioner has given written notice
to the Respondent of lifting of the suspension.
7. Restitution Condition:
Respondent shall, prior to the issuance of the restricted license and as a condition of the issuance of said restricted
license, submit proof satisfactory to the Commissioner of payment of restitution in the amount of ___________ to
______________.

8. Reporting Condition (Broker Only):
Respondent shall report in writing to the Bureau of Real Estate as the Real Estate Commissioner shall direct by his
Decision herein or by separate written order issued while the restricted license is in effect such information concerning
Respondent's activities for which a real estate license is required as the Commissioner shall deem to be appropriate to
protect the public interest.
Such reports may include, but shall not be limited to, periodic independent accountings of trust funds in the custody and
control of Respondent and periodic summaries of salient information concerning each real estate transaction in which
the Respondent engaged during the period covered by the report.

9. Suspension (Broker and Salesperson):
All licenses and licensing rights of Respondent _____________ under the Real Estate Law are suspended for a period
of ___________ (____) days from the effective date of this Decision.
10. Suspension With All or a Portion Stayed (Broker and Salesperson):
All licenses and licensing rights of Respondent _____________ under the Real Estate Law are suspended for a period
of _____________(____) days from the effective date of this Decision; provided, however, that ___________(____)
days of said suspension shall be stayed for one (1) year upon the following terms and conditions:

1. Respondent shall obey all laws, rules and regulations governing the rights, duties and responsibilities of a real
estate licensee in the State of California; and

2. That no final subsequent determination be made, after hearing or upon stipulation, that cause for disciplinary
action occurred within one (1) year of the effective date of this Decision. Should such a determination be made, the
Commissioner may, in his discretion, vacate and set aside the stay order and reimpose all or a portion of the stayed
suspension. Should no such determination be made, the stay imposed herein shall become permanent.

11. Suspension With Monetary Penalty in Lieu of Suspension Pursuant to Business and Professions Code Section
10175.2 (Broker and Salesperson):

All licenses and licensing rights of Respondent _____________ under the Real Estate Law are suspended for a period
of _____________(____) days from the effective date of this Decision; provided, however, that if Respondent petitions,
said suspension (or a portion thereof) shall be stayed upon condition that:
1. Respondent pays a monetary penalty pursuant to Section 10175.2 of the Business and Professions Code at the
rate of $_________ for each day of the suspension for a total monetary penalty of $____________.
2. Said payment shall be in the form of a cashier's check or certified check made payable to the Recovery Account
of the Real Estate Fund. Said check must be received by the Bureau prior to the effective date of the Decision in
this matter.

3. No further cause for disciplinary action against the real estate license of Respondent occurs within one year from
the effective date of the Decision in this matter.



4. If Respondent fails to pay the monetary penalty in accordance with the terms and conditions of the Decision, the
Commissioner may, without a hearing, order the immediate execution of all or any part of the stayed suspension in
which event the Respondent shall not be entitled to any repayment nor credit, prorated or otherwise, for money paid
to the Bureau under the terms of this Decision.
5. If Respondent pays the monetary penalty and if no further cause for disciplinary action against the real estate
license of Respondent occurs within one year from the effective date of the Decision, the stay hereby granted shall
become permanent.

12. Denial of Broker License Application With Right to a Restricted Broker License. (Note: The continuing
education condition should not be used in application cases):
Respondent's application for a real estate broker license is denied; provided, however, a restricted real estate broker
license shall be issued to Respondent pursuant to Section 10156.5 of the Business and Professions Code. The restricted
license issued to the Respondent shall be subject to all of the provisions of Section 10156.7 of the Business and
Professions Code and to the following limitations, conditions and restrictions imposed under authority of Section
10156.6 of said Code:
1. The license shall not confer any property right in the privileges to be exercised, and the Real Estate Commissioner
may by appropriate order suspend the right to exercise any privileges granted under this restricted license in the
event of:

(a) The conviction of Respondent (including a plea of nolo contendere) of a crime which is substantially
related to Respondent's fitness or capacity as a real estate licensee; or
(b) The receipt of evidence that Respondent has violated provisions of the California Real Estate Law, the
Subdivided Lands Law, Regulations of the Real Estate Commissioner or conditions attaching to this
restricted license.
2. Respondent shall not be eligible to apply for the issuance of an unrestricted real estate license nor the removal of
any of the conditions, limitations or restrictions attaching to the restricted license until two years have elapsed from
the date of issuance of the restricted license to Respondent.

13. Denial of Salesperson License Application With Right to a Restricted Salesperson License (Unconditional).
(Note: The continuing education condition should not be used in application cases):
Respondent's application for a real estate salesperson license is denied; provided, however, a restricted real estate
salesperson license shall be issued to Respondent pursuant to Section 10156.5 of the Business and Professions Code.
The restricted license issued to the Respondent shall be subject to all of the provisions of Section 10156.7 of the Business
and Professions Code and to the following limitations, conditions and restrictions imposed under authority of Section
10156.6 of said Code:
1. The license shall not confer any property right in the privileges to be exercised, and the Real Estate Commissioner
may by appropriate order suspend the right to exercise any privileges granted under this restricted license in the
event of:

(a) The conviction of Respondent (including a plea of nolo contendere) of a crime which is substantially
related to Respondent's fitness or capacity as a real estate licensee; or

(b) The receipt of evidence that Respondent has violated provisions of the California Real Estate Law, the
Subdivided Lands Law, Regulations of the Real Estate Commissioner or conditions attaching to this
restricted license.
2. Respondent shall not be eligible to apply for the issuance of an unrestricted real estate license nor the removal of
any of the conditions, limitations or restrictions attaching to the restricted license until two years have elapsed from
the date of issuance of the restricted license to Respondent.
3. With the application for license, or with the application for transfer to a new employing broker, Respondent shall
submit a statement signed by the prospective employing real estate broker on a form RE 552 (Rev. 4/88) approved
by the Bureau of Real Estate which shall certify as follows:
(a) That the employing broker has read the Decision which is the basis for the issuance of the restricted
license; and



(b) That the employing broker will carefully review all transaction documents prepared by the restricted
licensee and otherwise exercise close supervision over the licensee's performance of acts for which a license
is required.

14. Denial of Application for Conditional Salesperson Application or Revocation of Conditional Salesperson
License. (Note: A license is “conditional” when the respondent has not completed the two additional courses
required by Section 10153.4):
Denial: Restricted License:
1. Respondent's restricted real estate salesperson license is issued subject to the requirements of Section 10153.4 of
the Business and Professions Code, to wit: Respondent shall, within eighteen (18) months of the issuance of the
restricted license, submit evidence satisfactory to the Commissioner of successful completion, at an accredited
institution, of a course in real estate practices and one of the courses listed in Section 10153.2, other than real estate
principles, advanced legal aspects of real estate, advanced real estate finance or advanced real estate appraisal. If
Respondent fails to timely present to the Bureau satisfactory evidence of successful completion of the two required
courses, the restricted license shall be automatically suspended effective eighteen (18) months after the date of its
issuance. Said suspension shall not be lifted unless, prior to the expiration of the restricted license, Respondent has
submitted the required evidence of course completion and the Commissioner has given written notice to Respondent
of lifting of the suspension.
2. Pursuant to Section 10154, if Respondent has not satisfied the requirements for an unqualified license under
Section 10153.4, Respondent shall not be entitled to renew the restricted license, and shall not be entitled to the
issuance of another license which is subject to Section 10153.4 until four years after the date of the issuance of the
preceding restricted license.
Revocation: Restricted License. (Applicable if less than eighteen (18) months have passed since the issuance of the
conditional license being revoked):

1. Respondent's restricted real estate salesperson license is issued subject to the requirements of Section 10153.4 of
the Business and Professions Code, to wit: Respondent shall, within eighteen (18) months of the issuance of the
license revoked herein, submit evidence satisfactory to the Commissioner of successful completion, at an accredited
institution, of a course in real estate practices and one of the courses listed in Section 10153.2, other than real estate
principles, advanced legal aspects of real estate, advanced real estate finance or advanced real estate appraisal. If
Respondent fails to present to the Bureau satisfactory evidence of successful completion of the two required courses,
the restricted license shall be automatically suspended effective eighteen (18) months after the date of issuance of
the license revoked herein. Said suspension shall not be lifted unless prior to the expiration of the restricted license
Respondent has submitted the required evidence of course completion and the Commissioner has given written
notice to Respondent of lifting of the suspension.
2. Pursuant to Section 10154, if Respondent has not satisfied the requirements for an unqualified license under
Section 10153.4, Respondent shall not be entitled to renew the restricted license, and shall not be entitled to the
issuance of another license which is subject to Section 10153.4 until four years after the date of the issuance of the
preceding restricted license.
Revocation: Restricted License. (More than 18 months have passed since the issuance of the conditional license
being revoked):
1. Prior to the delivery or mailing of Respondent's restricted license, Respondent shall submit evidence satisfactory
to the Commissioner of successful completion, at an accredited institution, of a course in real estate practices and
one of the courses listed in Section 10153.2, other than real estate principles, advanced legal aspects of real estate,
advanced real estate finance or advanced real estate appraisal. If Respondent fails to present to the Bureau
satisfactory evidence of successful completion of the two required courses, the restricted license shall be
automatically suspended. Said suspension shall not be lifted unless, prior to the expiration of the restricted license,
Respondent has submitted the required evidence of course completion and the Commissioner has given written
notice to Respondent of lifting of the suspension.
2. If Respondent has not satisfied the requirements for an unqualified license within four years from the date of
issuance of the restricted license revoked herein, Respondent shall not be entitled to renew the restricted license,
and shall not be entitled to the issuance of another license which is subject to Section 10153.4 until four years after
the date of the issuance of the preceding restricted license.



15. Trust Fund Violations: Standard Terms and Conditions for a Restricted License:
Pursuant to Section 10148 of the Business and Professions Code, Respondent shall pay the Commissioner's reasonable
cost for: a) the audit which led to this disciplinary action and, b) a subsequent audit to determine if Respondent has
corrected the trust fund violation(s) found in paragraphs __________ of the Determination of Issues. In calculating the
amount of the Commissioner's reasonable cost, the Commissioner may use the estimated average hourly salary for all
persons performing audits of real estate brokers, and shall include an allocation for travel time to and from the auditor's
place of work. Respondent shall pay such cost within 60 days of receiving an invoice from the Commissioner detailing
the activities preformed during the audit and the amount of time spent performing those activities. The Commissioner
may suspend the restricted license issued to respondent pending a hearing held in accordance with Section 11500, et
seq., of the Government Code, if payment is not timely made as provided for herein, or as provided for in a subsequent
agreement between the Respondent and the Commissioner. The suspension shall remain in effect until payment is made
in full or until Respondent enters into an agreement satisfactory to the Commissioner to provide for payment, or until a
decision providing otherwise is adopted following a hearing held pursuant to this condition.
16. Trust Fund Violations: Standard Terms and Conditions for a Suspended License:
All licenses and licensing rights of Respondent are suspended for two years from the effective date of this Decision;
provided, however, that the suspension shall be stayed upon the following terms and conditions:
1. Respondent's license and license rights shall be actually suspended for a period of ____ days. Respondent may,
pursuant to Section 10175.2, petition the Commissioner to pay a monetary penalty and thereby further stay
imposition of the term of the actual suspension. (Note: The last sentence is optional.)
2. Respondent shall obey all laws, rules and regulations governing the rights, duties and responsibilities of a real
estate licensee in the State of California.

3. The Commissioner may, if a final subsequent determination is made, after hearing or upon stipulation, that cause
for disciplinary action occurred during the term of the suspension provided for in condition “1”, vacate and set aside
the stay order including any further stay imposed pursuant to Section 10175.2. Should no order vacating the stay be
made pursuant to this condition or condition “4” below, the stay imposed herein shall become permanent.

4. Pursuant to Section 10148 of the Business and Professions Code, Respondent shall pay the Commissioner's
reasonable cost for: a) the audit which led to this disciplinary action and, b) a subsequent audit to determine if
Respondent has corrected the trust fund violation(s) found in paragraphs ________________ of the Determination
of Issues. In calculating the amount of the Commissioner's reasonable cost, the Commissioner may use the estimated
average hourly salary for all persons performing audits of real estate brokers, and shall include an allocation for
travel costs, including mileage, time to and from the auditor's place of work and per diem. Respondent shall pay
such cost within 60 days of receiving an invoice from the Commissioner detailing the activities performed during
the audit and the amount of time spent performing those activities. The Commissioner may, in his discretion, vacate
and set aside the stay order, if payment is not timely made as provided for herein, or as provided for in a subsequent
agreement between the Respondent and the Commissioner. The vacation and the set aside of the stay shall remain
in effect until payment is made in full, or until Respondent enters into an agreement satisfactory to the
Commissioner to provide for payment. Should no order vacating the stay be issued, either in accordance with this
condition or condition “3”, the stay imposed herein shall become permanent.
17. Trust Fund Violation Course Requirement.
Restricted License:

Respondent shall, prior to and as a condition of the issuance of the restricted license, submit proof satisfactory to the
Commissioner of having taken and successfully completed the continuing education course on trust fund accounting
and handling specified in subdivision (a) of Section 10170.5 of the Business and Professions Code. Proof of satisfaction
of this requirement includes evidence that respondent has successfully completed the trust fund account and handling
continuing education course within 120 days prior to the effective date of the Decision in this matter.
Suspended License:

All licenses and licensing rights of Respondent _________________ are indefinitely suspended unless or until
Respondent provides proof satisfactory to the Commissioner, of having taken and successfully completed the continuing
education course on trust fund accounting and handling specified in paragraph (3) of subdivision (a) of Section 10170.5
of the Business and Professions Code. Proof of satisfaction of this requirement includes evidence that respondent has



successfully completed the trust fund account and handling continuing education course within 120 days prior to the
effective date of the Decision in this matter.
18. Unlicensed Activity (Brokers and Salespersons) License Suspension with Right to Petition to Pay Monetary
Penalty.
(a) In addition to any other penalty imposed, when a Respondent is found to have been compensated for performing
acts requiring a real estate license without having a license or when his or her real estate license was suspended, revoked
or expired, the penalty shall include a suspension of the license with the right to pay a monetary penalty to stay all or a
portion of the suspension. The length of the suspension shall be based on the aggregate amount of compensation paid
during the period of non-licensure measured by one (1) day of suspension for each one hundred dollars ($100) of
compensation received up to a maximum of $10,000.00.)
(b) All licenses and licensing rights of Respondent __________ under the Real Estate Law are suspended for a period
of __________ (____) days from the effective date of this Decision; provided, however, that if Respondent petitions,
said suspension (or a portion thereof) shall be stayed upon condition that:

1. Respondent pays a monetary penalty pursuant to Section 10175.2 of the Business and Professions Code at the
rate of $100.00 for each day of the suspension for a total monetary penalty of $___________.

2. Said payment shall be in the form of a cashier's check or certified check made payable to the Recovery Account
of the Real Estate Fund. Said check must be received by the Bureau prior to the effective date of the Decision in
this matter.
3. No further cause for disciplinary action against the real estate license of Respondent occurs within one year from
the effective date of the Decision in this matter.

4. If Respondent fails to pay the monetary penalty in accordance with the terms and conditions of the Decision, the
Commissioner may, without a hearing, order the immediate execution of all or any part of the stayed suspension in
which event the Respondent shall not be entitled to any repayment nor credit, prorated or otherwise, for money paid
to the Bureau under the terms of this Decision.
5. If Respondent pays the monetary penalty and if no further cause for disciplinary action against the real estate
license of Respondent occurs within one year from the effective date of the Decision, the stay hereby granted shall
become permanent.
19. Reporting Condition Criminal Conviction Cases (Brokers and Salespersons) - Restricted License.

In addition to any other penalty imposed, when a Respondent is found to have violated Sections 475(a)(2), 480(a)(1),
490 or 10177(b) of the Code, the following condition shall be included among the terms and conditions attached to a
restricted license:
Respondent shall notify the Commissioner in writing within 72 hours of any arrest by sending a certified letter to the
Commissioner at the Bureau of Real Estate, Post Office Box 137000, Sacramento, CA 95813-7000. The letter shall set
forth the date of Respondent's arrest, the crime for which Respondent was arrested and the name and address of the
arresting law enforcement agency. Respondent's failure to timely file written notice shall constitute an independent
violation of the terms of the restricted license and shall be grounds for the suspension or revocation of that license.
20. Order of Debarment
Pursuant to Section 10087 of the Business and Professions Code, Respondent ______ is hereby barred and prohibited
for a period of thirty-six (36) months from the effective date of this order from performing any of the following activities
in the State of California:

(a) Participating in any capacity to further the business activity of a real estate salesperson or real estate broker, or
engaging in any business activity involving real estate that is subject to regulation under Division 4 (Sections 10000
through 11288) of the Business & Professions Code;
(b) Participating in any activity for which a real estate salesperson or a real estate broker license is required;

(c) Engaging in any real estate-related business activity on the premises where a real estate salesperson or real estate
broker is conducting business which requires a real estate license;



(d) Participating in any real estate-related business activity of a finance lender, residential mortgage lender, bank, credit
union, escrow company, title company, or underwritten title company; and
(e) Holding any position of employment, management, control, or ownership, as a real estate broker, a real estate
salesperson, or an unlicensed person, in any business involving any of the activities mentioned in subparagraphs (a)
through (d) above.
Article 18.8. Voluntary Surrender of License

2940. Petition for Voluntary Surrender of License.
(a) A licensee may petition the commissioner under Section 10100.2 of the Code to accept the voluntary surrender of
his or her real estate license or license rights. The petition shall be in writing and shall contain the following:
(1) A reference to the investigation or accusation giving rise to the petition.

(2) An identification of the real estate licenses or license rights held by the petitioner.
(3) An acknowledgment that the petitioner has read and agrees to the following as a condition of the commissioner's
acceptance of the petition:
The filing of a petition shall be deemed to be an understanding and agreement by the licensee that upon
acceptance by the commissioner all affidavits obtained in the investigation prior to the acceptance and all
allegations contained in an accusation filed pursuant to Section 11503 of the Government Code may be
considered by the Bureau to be true and correct for the purpose of deciding whether or not to grant reinstatement
of the license.

(b) Acceptance of a petition to surrender a license shall be pursuant to an Order issued by the commissioner. The
commissioner may refuse to accept a surrender of a license if it is determined in the exercise of his or her discretion,
that it would not be in the public interest to accept the surrender.
Article 18.9. Discipline Regarding Mortgage Loan Originator License Endorsement

2945.1. Effect of License Discipline on Mortgage Loan Originator License Endorsement.
Real estate license discipline, including a revocation, a suspension, a voluntary surrender of a real estate license, a public
reproval, and/or a bar order, may be cause for the revocation and/or suspension of the real estate licensee's mortgage
loan originator license endorsement. The disciplinary action on an existing license endorsement may be imposed via
the same process and within the same order as the license discipline.

2945.2. Effect of Prior License Discipline on Mortgage Loan Originator License Endorsement Application.
(a) Where a real estate licensee was subject to a real estate license discipline action filed by the Bureau prior to January
1, 2010, resulting in discipline in the form of a revocation and/or suspension, such discipline in itself shall not be the
sole basis to deny the issuance of a mortgage loan originator license endorsement.
(b) Where a real estate licensee was subject to a real estate license discipline action filed by the Bureau on January 1,
2010, or later, resulting in a revocation, a suspension, a voluntary surrender of a real estate license, a public reproval,
and/or a bar order, such discipline alone may be cause for denial of a subsequent mortgage loan originator license
endorsement.
(c) A disciplinary action resulting in the revocation of a real estate license with an immediate right to a restricted real
estate license shall not constitute a revocation for purposes of invoking a lifetime ban from holding a mortgage loan
originator license endorsement.

2945.3. Effect of Prior Felony Conviction on Mortgage Loan Originator License Endorsement Application.
A conviction for any felony within seven (7) years of a real estate licensee's application for a mortgage loan originator
license endorsement is cause for denial of the application. A felony conviction at any time in the applicant's personal
history where such felony involved an act of fraud, dishonesty, a breach of trust, or money laundering is cause for denial
of the application. These restrictions constitute a ban on the real estate licensee's ability to apply for a license
endorsement. These restrictions are not subject to mitigation or rehabilitation.



2945.4. Disciplinary Process Uniformity: Real Estate License and Mortgage Loan Originator License
Endorsement.
The Bureau will apply parallel standards and process to mortgage loan originator license endorsements as the Real
Estate Law and Regulations of the Real Estate Commissioner apply to real estate licenses with regard to disciplinary
procedure, voluntary surrender of license, statute of limitations, and jurisdiction over lapsed and suspended licenses.

Article 19. Escrows