DRE jurisdiction and grounds for discipline

California's licensing authority

The California Department of Real Estate, or DRE, regulates real estate licensees under the Real Estate Commissioner. The Governor appoints the Commissioner. The Commissioner may investigate on the Commissioner's own motion and must investigate a verified written complaint concerning conduct within Section 10176. An investigation is not itself a finding of guilt.

Recognize the misconduct

California discipline can follow a substantial misrepresentation, a false promise likely to induce someone to act, undisclosed dual agency, commingling, or secret compensation. Dual agency itself is lawful with the parties' knowledge and consent. Commingling means mixing money or property held for others with the licensee's own; conversion means wrongfully using another's property. They are different misconduct concepts. A broker who places a buyer's deposit into the broker's operating funds has a commingling problem even if the broker plans to return it.

Section 10176 also addresses demanding compensation under an exclusive agreement lacking a definite, specified final termination date. Section 10177 addresses fraud or material misstatements in obtaining or renewing a license and specified criminal matters. A transaction need not close before attempted licensed conduct can support discipline.

Match the power to the problem

A written citation may address unlicensed activity or a licensee's violation and may include a correction order and administrative fine. Under Section 10080.9, citation discipline is in lieu of other administrative discipline for the cited offenses, subject to the provision for continued or repeated violations. Citation and payment by a licensee are not reported as disciplinary action under that section. Do not confuse that treatment with public reporting of suspensions, revocations, and accusations.

A desist-and-refrain order under Section 10086 requires the recipient to stop the specified activity immediately upon receipt. A hearing request does not by itself authorize continued activity. License discipline can include suspension or revocation. A restricted license permits activity subject to conditions; the Commissioner may require monitoring costs and restitution as a condition of issuance. Payment instead of an actual suspension under Section 10175.2 requires a licensee's petition and the Commissioner's public-interest determination, rather than a unilateral choice by the licensee.

Procedure matters

Ordinary disciplinary proceedings provide notice and an opportunity to be heard. A narrow exception under Section 10177.1 allows suspension without a prior hearing for a fraudulently procured license: that power expires 90 days after issuance, and a statement of issues accompanies the suspension order. The respondent has 30 days after service to request a hearing. Particular offenses and procedures have different requirements; identify the precise enforcement tool before applying a deadline.