As of 2012, the Department of Real Estate now requires its licensed brokers and real estate salespersons to report certain “adverse events” to the Department.  Business and Professions Code §10186.2 requires a licensee to make a report, in writing, within 30 days if any of the following occur:

–         A licensee is charged with a felony, either through an indictment or an information.  (Indictments are formal charges brought by a grand jury; an information is like a complaint but filed after a preliminary hearing);

–         A licensee is convicted of a felony or a misdemeanor or any kind; or

–         A disciplinary action is taken by any state or federal licensing agency.

It is important for licensees to be aware of their obligations under this new law.  For example, a “conviction” for a felony or misdemeanor must be promptly reported by the licensee; he or she cannot wait until license renewal to inform DRE.  Also, “convicted” means not just a jury verdict, but any plea of guilty or no contest (“nolo contendere”).

Because licensed professionals often hold multiple licenses in several states, they must be aware that any professional discipline, to any license, must now be reported immediately to DRE.  It may be necessary to seek legal advice to determine whether an action by a state board or department outside of California constitutes a “disciplinary action” within the meaning of DRE’s reporting requirement.

Failure to disclose any of the above adverse events can have serious consequences – the Department can seek complete revocation of a license for any violation of its regulations, no matter how minor.  For more information about the new law, or if you have questions about whether or not you have suffered an adverse event within the meaning of the law, contact our firm at (949) 557-4888.  We have helped many licensed real estate salespersons and brokers keep their licenses after suffering criminal convictions, and we also help applicants get salespersons and brokers licenses even with criminal convictions in their background.