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CA BRE Broker License

Who is a Broker?

CA BRE Broker License

Bureau of Real Estate (BRE) Broker is a licensed professional that can engage in the business of real estate and mortgage brokering. You may engage in the activities of sale, exchange, negotiation, or solicitation of real estate, mortgage loans, leases, or real estate sales contracts for compensation. With this license you can work independently, work with other brokers, or act as the supervising broker for a corporation. You can employ Salespersons to expand the business.

Apart from real estate brokering, this license allows both commercial and residential mortgage activities.

Source :www.MortgagesAnalyzed.com

Who Needs a Broker License?

If you engage in sale, exchange, negotiation, or solicitation of real estate, mortgage loans, leases, or real estate sales contracts for compensation will require a license in California. Visit BRE Licenses page to learn more on activities that require a license.

Source :www.MortgagesAnalyzed.com

Essential Facts - Broker License

Validity/License Term:
4 Years
Activities Allowed:
Real Estate, Commercial Mortgage, and Residential Mortgage. Mortgage activities require MLO endorsement
Educational Requirements:
8 college level courses
Experience Requirements:
Minimum two years Salesperson or equivalent experience, or have a four year college degree.
Available To:
Individuals only
Residency:
The licensee need not be resident of California
Foreign Entities:
Available to lawful US residents. Conditions may be imposed upon certain visa holders including H1 and L1.
Reciprocity:
None. BRE does not waive any license requirement when a person is licensed in any other state.
Renewal:
Obtain 40 hours of continuing education in every four year period
Branch License:
Each branch needs to be licensed
Source :www.MortgagesAnalyzed.com

Eligibility Requirements for Obtaining a License

Key Requirements

  1. Age: You must be 18 years of age or older.
  2. Residence: You must provide proof of legal presence in the United States i.e. proof of US Citizenship or proof of legal alien status.
  3. Honesty: Full disclosure of criminal convictions and pending criminal charges must be made when applying for the license. BRE may deny an application if you are found to be withholding any criminal violation or disciplinary action.
    BRE Publication Applicant Eligibility Information (RE 222) provides information on the factors BRE may consider in declining a license application based on prior criminal convictions or pending criminal charges.
  4. Education: You need to successfully complete eight college-level courses to qualify for a real estate broker examination. These courses must be three college level semester-units or four quarter-units. The courses required by BRE are:
    1. Real Estate Practice
    2. LegalAspects of Real Estate
    3. Real Estate Finance
    4. Real Estate Appraisal
    5. Real Estate Economics OR General Accounting
    6. Any three courses from the list below. If you have completed both, General Accounting and Real Estate Economics, then you to complete any two papers from the list below.
      1. Real Estate Principles
      2. Business Law
      3. Property Management
      4. Escrow
      5. Real Estate Office Administration
      6. Mortgage Loan Brokering and Lending
      7. Advanced Legal Aspects of Real Estate
      8. Advanced Real Estate Finance
      9. Advanced Real Estate Appraisal
      10. Computer Applications in Real Estate
      11. Common Interest Developments
    Learn more about recognized educational institutions that provide the qualifying courses.
    Source :www.MortgagesAnalyzed.com
  5. Experience: You need to meet any one of the following experience requirements.
    1. Two Years Salesperson Experience: Within the last five years, you must have a minimum of two years of full time experience as a licensed salesperson.
    2. Two Years Equivalent Experience: Real estate related experience in areas such as escrow, title officer, contractor, or real estate appraiser can be considered in lieu of two year salesperson experience requirement.
    3. College Degree in lieu of Experience: From Jan 1, 2013, you can get an exemption from experience requirements if you have completed a four-year degree from an accredited college with a major or minor in real estate. The major or minor in real estate does not exempt you from completing the required 8 college level courses.

      If you have submitted a complete application prior to Jan 1, 2013 then you may still use the old rules which allowed you to gain exemption from experience requirement if you have completed a four-year college degree in any major or minor. The license applications are valid for two years which is the time you can use to pass the examination and qualify under the old rules.
  6. Examination: You must pass a real estate broker examination. The examination is administered by the BRE.

Ineligibilities

Certain restrictions or circumstances that can cause an application to be denied are:

  1. Child Support Payments: BRE will not issue a full term license if you have not complied with a court order to provide child support payments. The Department of Child Support Services compiles the list which includes all counties in California.
  2. 500 Largest Tax Delinquencies: BRE will not issue a license if your name is included on the list of the 500 largest tax delinquencies pursuant to Section 7063 or 19195 of the Revenue and Taxation Code. A separate list of delinquent tax payer’s is prepared by Franchise Tax Board and the State Board of Equalization.
Source :www.MortgagesAnalyzed.com

Qualification Exemptions

Members of CA State Bar

Members of CA State Bar are exempt from college level course requirements. To document the exemption, you will have to provide evidence of membership of the State Bar such as photocopy of both sides of a California State Bar membership card.

From Jan 1, 2013 a J.D. degree in itself will not allow you to be exempt from any educational or experience requirements. To qualify for the education and experience exemptions, you need to be a member of the member of the State Bar of California.

Additional Requirements for a Mortgage Loan Originator

Applicants who desire to enter the mortgage industry and conduct residential (1 to 4 units) Mortgage Loan Originator (MLO) activities are required to obtain a MLO license endorsement after obtaining BRE Salesperson/Broker License. BRE defines MLO as "An individual who takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan for compensation or gain."

Therefore, to conduct mortgage activities, the applicant should consider the additional MLO related requirements:

  1. Felonies: The applicant should has never been convicted of a felony involving an act of fraud, dishonesty, breach of trust, or money laundering, or convicted of any felony in the seven year period before filing an application for an MLO endorsement.
  2. Revocations of MLO Endorsements: The applicant should never had a MLO license revoked in any governmental jurisdiction.
  3. Credit History: The applicant must be able to demonstrate financial responsibility by showing there has never been disregard in the management of his or her own financial condition.
Source :www.MortgagesAnalyzed.com

How to Apply for a License

You have two choices when applying for license:

  1. Combined Examination and License Application: You may choose to apply for the examination and the license together. We recommend this option.
  2. Separate Examination and License Application: You can take the examination first and then apply for the license. The license application needs to be submitted within one year of passing the exam. Learn More.
Source :www.MortgagesAnalyzed.com

License Renewals

Broker license is renewed every four year upon completion of the required continuing education requirements and other renewal requirements. Learn more here for renewal requirements.

Source :www.MortgagesAnalyzed.com

Regulatory Definitions

Real Estate Broker Defined

10131 of CA Business and Professions Code define a real estate broker as follows:

A real estate broker within the meaning of this part is a person who, for a compensation or in expectation of a compensation, regardless of the form or time of payment, does or negotiates to do one or more of the following acts for another or others:

(a) Sells or offers to sell, buys or offers to buy, solicits prospective sellers or purchasers of, solicits or obtains listings of, or negotiates the purchase, sale or exchange of real property or a business opportunity.

(b) Leases or rents or offers to lease or rent, or places for rent, or solicits listings of places for rent, or solicits for prospective tenants, or negotiates the sale, purchase or exchanges of leases on real property, or on a business opportunity, or collects rents from real property, or improvements thereon, or from business opportunities.

(c) Assists or offers to assist in filing an application for the purchase or lease of, or in locating or entering upon, lands owned by the state or federal government.

(d) Solicits borrowers or lenders for or negotiates loans or collects payments or performs services for borrowers or lenders or note owners in connection with loans secured directly or collaterally by liens on real property or on a business opportunity.

(e) Sells or offers to sell, buys or offers to buy, or exchanges or offers to exchange a real property sales contract, or a promissory note secured directly or collaterally by a lien on real property or on a business opportunity, and performs services for the holders thereof.

Source :www.MortgagesAnalyzed.com

Mortgage Loan Originator Defined

According to BRE publication, Instructions To License Applicants (RE4):

For individuals licensed by BRE, a mortgage loan originator (MLO) an individual who takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan for compensation or gain. An individual real estate licensee acting within the meaning of Section 10131(d) or Section 10131.1(b)(1)(c) of the Business and Professions Code (B&P) is a mortgage loan originator with respect to activities involving residential mortgage loans.

10131(d) of CA Business and Professions Code

Solicits borrowers or lenders for or negotiates loans or collects payments or performs services for borrowers or lenders or note owners in connection with loans secured directly or collaterally by liens on real property or on a business opportunity.

10131.1 (b) (1) (C) of CA Business and Professions Code

The making of eight or more loans in a calendar year from the person’s own funds to the public when those loans are held or resold and are secured directly or collaterally by a lien on residential real property consisting of a single dwelling unit in a condominium or cooperative or on any parcel containing only residential buildings if the total number of units on the parcel is four or less. However, no transaction negotiated through a real estate broker who meets the criteria of subdivision (a) or (b) of Section 10232 shall be considered in determining whether a person is a real estate broker within the meaning of this section.

Source :www.MortgagesAnalyzed.com

Updated: Sep 14, 2013

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Apart from real estate brokering, this license allows both commercial and residential mortgage activities
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