| As real estate investments continue to dominate the | | | | The Requirement of A Real Estate License |
| financial world, there is a growing number of frauds in | | | | Under the Sections 10131, 10131.1, 10131.2, 10131.3, |
| the market. With the growing number of agencies, | | | | 10131.4, 10131.45, and 10131.6 of the Real Estate Law, |
| the Government has understood the need for laws | | | | the activities of the broker are defined. Under |
| to regulate the transactions. All the states and the | | | | Sections 10131 (d) and 10240 of the Real Property |
| District of Columbia enforce laws for licensing and | | | | Loan Law, the activities of the mortgage loan broker |
| regulating, and a code of conduct for the agents. | | | | are defined. |
| The industry has strongly supported real estate | | | | In the absence of a license, no compensation will be |
| licensing law. | | | | given to a person for carrying out any of the acts |
| Objectives of the Laws | | | | stated within the scope of a licensed broker. The law |
| Prevention of fraudulent practices is the major | | | | enforces penalties for an individual claiming to be a |
| objective of the laws. The real estate world is | | | | real estate broker without having a license. Any |
| vulnerable to abuses so the courts have made it | | | | would be real estate broker who charges a person |
| mandatory for the sellers to disclose all the essential | | | | fees without a license for carrying out activities, |
| information to the buyers for consumer protection. | | | | which call for a real estate license, faces fines from |
| This document containing all the facts is called the | | | | the Commissioner. Furthermore, a person, who is |
| public report. | | | | found charging individuals fees without a license shall |
| Codes of Law | | | | be found guilty of a crime under Sections 10138, |
| On August 4, 1943, the legislative power of the | | | | 10139, 10139.5 of the Code. |
| Department of Real Estate (DRE) was categorized as | | | | The Importance Of Rules And Regulations |
| two Parts of the Division 4 catering to the Business | | | | Before going into transactions, it is best to become |
| and Professions Code. Part 1 is now known as | | | | familiar with the rules and regulations. The buyers |
| Sections 10000 to 10580. It is titled, "Licensing of | | | | should know their rights to avoid sellers taking undue |
| Persons" and can be quoted as the Real Estate Law. | | | | advantage. A well informed buyer is able to get a fair |
| Part 2 is called Sections 11000 to 11200. It is titled, | | | | deal from the agents, and may even go to court if |
| "Regulation of Transactions" and can be quoted as | | | | the agent strays from the law. |
| the Subdivided Lands Law. | | | | |