"Our mission: To protect the public in real estate transactions and provide related services to the real estate industry."

-- The California Department of Real Estate

The California Legislature enacted the nation's first real estate license law in 1917. Providing for the licensing and regulation of real estate licensees, this law continues to serve as a model for similar legislation in many other states.

Each state has its own real estate licensing laws and regulatory body. In California, this regulatory agency is the California Department of Real Estate, also known as the DRE. The MAIN purpose of the California Department of Real Estate is to protect the public. The DRE achieves this purpose through the enactment and enforcement of laws relating to real estate and by establishing requirements for the real estate salespersons' and brokers' licenses.

Through the DRE's enforcement of the real estate laws, the public is protected from incompetent or downright dishonest real estate licensees. The goal is for the consumer to have confidence and trust in the honesty and capability of all practicing licensees, knowing that these licensees are being supervised by the DRE.

The revenue necessary to operate the DRE is derived from fees charged for real estate licenses, subdivision public reports, and various other permits issued by the Department. This revenue goes into the Real Estate General Fund, which we will discuss at the end of this chapter. Employees operating from District Offices in five cities (Sacramento, Fresno, Los Angeles, Oakland, and San Diego) carry out the Department's responsibilities as mandated by the Real Estate Law and the Subdivided Lands Law.

The Real Estate Commissioner governs the entire California Department of Real Estate. The California legislature, which gives the Commissioner his authority and power, used police power to create the position of Commissioner. Remember that police power is the right of the state to enact and enforce laws for the order, safety, health, morals, and general welfare of the public.