In each state, that state’s real estate license laws comprise the primary body of laws and regulations governing real estate brokerage practice. California is no exception to this rule. The California Real Estate License Law specifies who must obtain a license to practice real estate and sets the requirements for obtaining and maintaining the license. License laws also define critical aspects of real estate brokerage, including the procedures for advertising, handling trust funds, managing escrow accounts, and dealing with clients and customers.

The California Department of Real Estate, or the DRE, as you will come to know it, is the administrative body that both administers AND enforces the real estate license laws and related regulation of California real estate licensees.

On August 4, 1943, the Legislature organized the statutory authority of the California Department of Real Estate (DRE) into the two Parts of Division 4 of the Business and Professions Code (also referred to as the B & P Code, or, more commonly, as “the Code”). These parts are as follows:

1. Part 1, Sections 10000 to 10580 of the Business and Professions Code, is most commonly known as the Real Estate Law; and
2. Part 2, Sections 11000 to 11200, is most commonly known as the Subdivided Lands Law.

Keep in mind that these laws are NOT the same – either in their purpose or in their operation – as real property law, agency law, contract law, ownership law, and any additional legal aspects of real estate, as set forth in this course.

Let’s move on to the following screen to discuss the DRE in more detail.