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Department of Real Estate (D.R.E.)

DEFINITION

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EXPLANATION

Created in 1917, the Department of Real Estate (DRE) is a government agency that regulates real estate activity and administers real estate law. Each state also has its own Department of Real Estate.

The California Department of Real Estate was created to promote and protect the interests of current and prospective California property owners. It regulates the licensing process, hears complaints, creates enforcement mechanisms, and oversees policies that promote fair and open real estate property trade. The Department also encompasses various agencies, including the Business, Transportation, and Housing Agency (BTH).

The Department of Real Estate, housed in every state, more commonly known as the DRE, is responsible for administering applicable real estate law. If questions about the legality or general ramifications of a certain transaction arise, it would be wise to contact the DRE.

Please visit www.dre.ca.gov for more information on particular legal issues with in real estate or to find the current status of a licensee.

Main Office

Sacramento

Address: 1651 Exposition Blvd. Sacramento, CA 95815

Phone Number: CalBRE Public Information Line – 1 (877) 373-4542

Fax Number: (916) 263-8943

Municipal Offices

Fresno

Address: 2550 Mariposa Mall, Room 3070 Fresno, CA 93721-2273

Phone Number: (877) 373-4542

Fax Number: (559) 445-5879

Los Angeles

Address: 320 West 4th Street, Suite 350 Los Angeles, CA 90013-1105

All LA Divisions Phone Number: (877) 373-4542

Fax Number – Enforcement: (213) 620-6442

Fax Number – Legal: (213) 576-6917

Fax Number – Subdivisions: (213) 576-6942

Oakland

Address: 1515 Clay Street, Suite 702 Oakland, CA 94612-1462

Phone Number: (877) 373-4542

Fax Number: (510) 622-2540

San Diego

Address: 1350 Front Street, Suite 1063 San Diego, CA 92101-3687

Phone Number: (877) 373-4542

Fax Number: (619) 525-4375

The Department of Real Estate  is responsible for issuing state real estate licenses for agents and brokers. Applicants must review and execute a real estate examination form. All necessary paperwork can be found at www.dre.ca.gov. Instructions can be found along with useful links on the government website, along with a license application, which will be sent upon passing the real estate licensing test.

Steps to complete:

License application form

Fingerprints

Processing fee

The preceding should be sent to the Department of Real Estate at:

Department of Real Estate, P.O Box 187001, Sacramento, CA 95818-7001

Prospective applicants must be truthful with their application. There will be a series of questions regarding the applicant’s background and history, including the applicant’s criminal background, previous convictions, and other related points of interest. Should the applicant fail to disclose potentially negative items, even if more than five years old or, those that occurred in another state, the application will be denied. Additionally, anything considered inaccurate or misleading may also be grounds for an application’s denial.

A social security is required. Corporations are not required, however, to follow this step.

The DRE will not renew a real estate license for applicants who are delinquent on child support payments, court ordered agreements, or other mandated court orders. The Department of Child Support Services maintains a list of individuals identified  as being behind on child support payments.

Real Estate Commissioner

The role of the Real Estate Commissioner is to diligently serve the state’s interests while adhering to the lead and direction established by the Governor. In order for an individual to be considered for the position of Commissioner, he or she must be a practicing real estate broker with a minimum of five years experience or, at the very least, have been involved in real estate transactions within five of the last 10 years.

Real Estate Commissioner Responsibilities:

Check current laws, including assessing necessary changes

Licensing screening

Gather public property information

Implement policies as set by governor

Engage in licensee disciplinary action

Investigate real estate transactions presumed as being illegal

Real Estate Advisory Commission

The Real Estate Advisory Commission is an organization appointed by the Real Estate Commissioner to assist in public real estate policy review. The Advisory Commission is responsible for providing recommendations to the Real Estate Commissioner and DRE. The recommendations of the Advisory Commission are offered to the Commissioner via valuable exchanges that concern problems and possible solutions.

There are 10 individuals serving on the Real Estate Advisory Commission, six of whom are licensed brokers (to represent licensee side) and four that are non-licensed members (to represent buyer/seller side) of the public. Both groups are responsible for informing the Commissioner of items that may have been potentially overlooked.

Lastly, the Advisory Commission acts as the ears of the Commissioner, apprising the Commissioner of market trends and related data. Given the limited time and availability of the Commissioner to personally stay abreast on information related to real state activity within the state, he or she relies on the input of the Commission to provide valuable and timely expertise. The Commission typically hosts yearly meetings, or more depending on the market conditions; meetings are open to the general public.

Other DRE Job Responsibilities

Fees that are collected by the department of real estate help pay for the Real Estate Education and Research Fund. The studies, conducted at public and private universities, help the DRE better understand the real estate market by keeping track of market trends, current financial events, and various market forces that affect the real estate market.

The Department of Real Estate does not rely on revenue from the state’s general fund. Rather, expenses are paid for by licensing and examination fees. Such revenues go directly to the Real Estate Fund. The revenue derived from state licensing expenses is set aside into two accounts. The two accounts are the Education and Research Account and the Recovery Account(s).

The DRE also manages and regulates the Recovery Account. The Recovery Account is a fund financed through broker and agent licensing fees. The money raised is used to assist victims of real estate fraud including buyers, sellers, and professionals. The Recovery Account awards damages after a court hearing. Possible claims include misrepresentation, fraud, deceit, or theft. The maximum recovery amount from the account is $50,000.

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