What is a restricted real estate license in California?

An overview of restricted real estate licenses in California.

You may have heard of a broker or salesperson who has a "restricted" real estate license.  But just what does that mean?

Click on the picture above to go to our Attorney Steve Real Estate TV video on restricted licenses.  Here is another video that discusses removing restricted real estate license status.

In a nutshell, a restricted real estate license is what often results following a BRE accusation being filed (which is basically a complaint against a real estate licensee who is alleged to have violated the real estate law or the commissioners regulations).

Often during the course of settling a BRE accusation and/or desist and refrain order, the BRE may agree to allow a licensee to continue practicing real estate, albeit with a "restricted license."

A restricted license must be applied for, and once granted, the licensee basically loses their "due process" rights (right to a hearing for example) if another complaint or violation arises against the licensee or real estate brokerage.  Whereas a all licensees have due process rights where they have a clean record with no discipline with the BRE, if you agree to a restricted license, then your due process rights are gone, and if another disciplinary problem arises in regard to your practice of real estate, you could just have your license revoked (while you fight for your license in a hearing).

So it is important to know what a restricted license is, and what happens if you get another complaint against you.

This is the reason we fight really hard to try to avoid a restricted license, and often to seek a suspension as opposed to a restricted license.  It all depends on the severity of the charges being made against the real estate broker and what the BRE's postion is.  Sometimes the accusations have to be taken to a hearing to try to convince an administrative law judge that you do not deserve a restricted real estate license.

This article was written by Attorney Steve Vondran, the real estate lawyer.  I hope you found it informative.