California Real Estate Law (B&P Code Div. 4)
California real estate practice is governed by the Real Estate Law in Business and Professions Code Division 4 and the Commissioner's Regulations, administered by the Department of Real Estate (DRE). This chapter covers DRE authority, the broker-salesperson distinction, and renewal.
The DRE and the Commissioner
The California Department of Real Estate, led by the Real Estate Commissioner, administers the Real Estate Law (B&P Code Division 4) and the Commissioner's Regulations. The DRE licenses brokers and salespersons, investigates complaints, and disciplines licensees. Unlike most states, California writes and administers its own license exam in-house.
Broker vs. Salesperson
A California broker may operate an independent business, employ salespersons, and hold client trust funds. A salesperson must be employed by and act under a licensed broker and cannot hold client funds independently. This supervisory capacity is why the broker exam is longer (200 questions, 4 hours) and harder than the salesperson exam.
Renewal and Continuing Education
California real estate licenses are issued for four years and require DRE-approved continuing education, including specified mandatory courses, before renewal. The four-year cycle applies to both brokers and salespersons and keeps licensees current on California law.