New Laws Enhances License Requirements in Real Estate (CALIFORNIA)

Ever since I got my license some years ago, I was amazed how easy it was for others to get their “conditional” real estate license. This license is conditional because applicants with this license are required to complete two more courses within 18 months in order to receive an unrestricted license, nevertheless people got their temporary license and went on to sell your home or help you invest your future in a home……that is a scary thought!!

Basically anyone from your barber to your car sales man (no disrespect to these professions) was able to get their license and call themselves “real estate agents.” Many did it without having a clue of the real basics of our profession and without knowing how important it is to help people realize their dreams instead looking at each consumer as their next commission check.

Well, things are looking up for the consumer and for us licensed REALTORS® (yes…there is BIG difference between a real estate agent and a REALTOR®). According the new law AB 2429, individuals (in California) who want to become real estate agents will have to comply with stricter requirements before they can receive their license, therefore eliminating the “conditional” real estate license. Us as professionals and you as a consumer owe this new law passing to the California Association of Realtors.

AB 2429 will increase the foundational knowledge of licensees entering the profession, and prevent ill-equipped licensees from engaging in licensed activity.

Also a new bill backed by the real estate industry is AB 1963 which involves Real Estate Brokers License. This bill seeks to raise the standards of professionalism, but for the moment it is still in the Governor’s desk. Currently applicants need to have a valid salesperson’s license, pass the exam and have at least two years of experience in general real estate however applicants with no experience in real estate may obtain their broker’s license as long as the individual has a degree from a four year college or university. I, believe this has brought some trouble to the consumer when for example they are dealing with an Electrical Engineer (again no disrespect to this profession, I even have family members with their masters in this profession) trying to guide them through the process of buying a home or selling a home.

C.A.R. hopes the new law and proposed bill will ensure the highest standards of professionalism in the industry.