Individuals who want to become real estate agents will have to comply with stricter requirements before they can receive their license, according to AB 2429 (Real Estate Salesperson Licensure), a new law signed by California Governor Arnold Schwarzenegger.
AB 2429 eliminates the "conditional" real estate license and will require prospective agents, beginning Oct.1, 2007, to complete all three of the Department of Real Estate-mandated pre-license courses prior to taking the license examination.
Right now, there are two ways to qualify for a real estate salesperson license. The first option requires an applicant to take three real estate classes and then pass the exam to receive a four-year license. The second option requires an applicant to take only one class and then take the exam. If the applicant passes the exam, the individual may obtain a "conditional" license and finish the rest of the required coursework within the next 18 months while still engaging in real estate activity. According to the DRE, 85 percent of new licensees came in under the conditional license option last year.
Due to the incredible influx of new licensees in the industry, the California Association of Realtors is seeking to raise the bar so all licensees can become excellent real estate professionals.
California Association of Realtors President Vince Malta said, "AB 2429 will increase the foundational knowledge of sales licensees entering the profession, and prevent ill-equipped licensees from engaging in licensed activity."
California now has 512,000 licensed real estate agents and the DRE expects the number to reach 600,000 by next year. The need for sophisticated management, effective referral networks and well-trained licensees is more important than ever as many licensees have no experience with an evolving market, according to real estate officials.
"This is good news from the public's standpoint because this means a more informed real estate agent is acting on their behalf because the agent would have had additional educational requirements and would be better prepared to answer all of the client's questions," said John Tripp, president of the Silicon Valley Association of Realtors. "The entire professionalism of the licensee is raised by having stricter educational requirements. It should also reduce the number of disputes."
Another bill backed by the real estate industry, AB1963 (Real Estate Brokers License), seeks to raise standards of professionalism among brokers; it is currently on the Governor's desk. At present, applicants for a broker's license are required to pass an exam, demonstrate a valid salesperson's license, and have two years experience in general real estate. However, the Real Estate Commissioner may also grant a broker's license to an applicant who does not have real estate experience, as long as the individual has a degree from a four-year college or university. AB1963 requires the same two years of "general real estate" experience for "degree brokers."
Given that brokers are mentors for the future generations of Realtors, C.A.R. wants to ensure they all have the tools to lead. AB1963 was authored by Assemblyman Tim Leslie, a former California real estate broker prior to entering politics. Leslie spoke to Realtors who gathered in Sacramento this summer and underlined his concern for the real estate industry. The purpose of the proposed legislation, Leslie said, is for applicants "to get out in the trenches and learn the basics which they can't learn by passing a test."
C.A.R. hopes the passage of these two measures will ensure the highest standards of professionalism in the real industry.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.