Disciplinary actions, citations, and restricted licenses

Public protection comes first

California's Department of Real Estate, headed by the Real Estate Commissioner, puts public protection first. Its enforcement tools differ in their effect on a person's authority to practice. A suspension temporarily removes license privileges; revocation withdraws the license. A restricted license permits practice subject to the Commissioner's conditions. Before suspending or revoking a license, the Department follows administrative hearing procedures.

Citations and correction

A citation is a written statement of particular violations. It may order correction, assess an administrative fine, or do both. California can cite licensed or unlicensed persons and entities. The Commissioner considers gravity, consumer harm or risk, prior violations, good faith, cooperation, and mitigation. Under section 2907.2, a licensee's total fine in one citation cannot exceed $2,500 even if it covers multiple violations from the same investigation. An unlicensed person may receive a citation for each unlicensed act.

A citation and fine constitute discipline, but replace other administrative discipline for the cited offenses; the citation against and payment by a licensee are not reported as disciplinary action taken by the Commissioner. This does not prevent additional orders for continued or repeated violations. Read each actual order carefully: restrictions, correction deadlines, and payment obligations depend on the applicable order and procedure.

Contesting a citation

The cited party may dispute the violation, the reasonableness of correction, the correction period, or the fine amount. Written notice of intent to request a formal hearing is due within 30 days after receipt; the Commissioner may extend that appeal period for good cause. A citation review conference follows within 60 days after receipt of that notice. The written conference result leaves the citation unchanged, amends it, or dismisses it. Failure to request a formal hearing within 30 days after receipt of the post-conference notice makes the citation and fine final.

A California citation review timeline starts with receipt of the citation. Written intent to seek a hearing is due within thirty days of receipt, subject to a good-cause extension. A review conference follows within sixty days after receipt of the notice of intent. A formal hearing request is due within thirty days after receipt of the post-conference notice. A separate box describes restricted licenses: practice is conditional, monitoring costs and restitution may be required, and paying costs does not itself remove restrictions. — Citation review follows a timeline; restricted licenses impose continuing conditions.

Without an appeal, pay by the citation's stated deadline. After an appeal, section 2907.4 generally requires payment within 30 calendar days after receipt of the conference notice, or after adoption of the decision if a formal hearing is requested. A correction or payment extension requires a timely written request explaining extenuating circumstances and good cause; granting it is discretionary. An unpaid fine or unfulfilled citation terms prevent license issuance or renewal.

Restricted licenses and protective orders

Under section 10186, the Commissioner may require monitoring costs and restitution before issuing a restricted license. Unpaid ordered costs prevent renewal and removal of restrictions or reinstatement of an unrestricted license. Paying costs does not itself remove restrictions. Separately, the Commissioner may seek a superior court injunction to stop violations and restitution for injured persons. A court may appoint a receiver when threatened funds or property need protection.