Who Needs a California Real Estate Broker License?
California requires real estate professionals who want to operate a brokerage firm to obtain a license as a California real estate broker. Bear in mind that you must have a certain amount of experience working in real estate before you can get a broker�s license.
What Does the Licensing Process Involve?
Before you can apply for a California real estate broker�s license you must have the following:
-������ Five years of full-time or four years of part-time experience as a real estate license, or
-������ A bachelor�s degree with a major or minor in real estate, or
-������ Real-estate related work experience equivalent to two years of sales experience (e.g., as a real estate developer, loan officer, property manager, etc. or as a licensed real estate agent or broker from another state or country)
In addition to obtaining documented evidence of your education and experience, you�ll need to complete eight college courses in specific brokerage subjects. You can�t apply for your license until you have passed all eight courses.
The remaining steps in the licensing process then include:
1.������ Get fingerprinted unless you have already been fingerprinted to become licensed as a California real estate agent.
2.������ Complete the Combined Broker Examination and License Application, and attach evidence that you have met all education and experience requirements. Indicate whether you want the Department of Real Estate (DRE) to schedule you for the real estate exam or prefer to do that yourself. Pay all applicable fees.
3.������ Pass the 5-hour broker exam within two years of submitting your application for licensing.
4.������ Consider obtaining a surety bond to demonstrate your commitment to ethical business conduct.
Why is a Surety Bond Recommended?
California does not require real estate brokers to purchase a license bond. However, voluntarily purchasing one or more types of fidelity bonds is a smart move for any real estate broker. It provides important financial protection for you and your business in the event that an employee commits a dishonest act, such as theft or forgery�occurrences that aren�t normally covered by general liability insurance.
Being bonded can give you a competitive advantage in marketing your business. Some clients, particularly commercial clients, will only work with a broker who is bonded. To other consumers, a fidelity bond is a sign that you are trustworthy and will be proactive in protecting their interests.
How Does It Work?
While most surety bonds protect the state and/or consumers but not the bonded individual, a fidelity bond is actually a form of insurance policy and protects the real estate broker as well as the broker�s clients. You can purchase one that covers dishonest or unethical acts committed by certain designated individuals only or by any member of your staff.
Depending on the terms of the fidelity bond you purchase, you may have to wait until criminal charges have been filed or an employee has been convicted to file a claim against the bond.
How Surety Bonds Work for California Real Estate Brokers
The annual premium for a fidelity bonds is a small percentage of the total bond amount. The exact percentage is based on the total amount of coverage requested and the number of employees to be covered.
Get Bonded Today
If you agree that voluntarily purchasing a fidelity bond for your California real estate brokerage is a good idea, give us a call or request a quote online.