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Practice Of Real Estate DisclosuresDre_regulationsMEDIUM

A licensed California broker intends to open a branch office in a city different from the main office. Under Cal. B&P Code §10163 and DRE regulations, what must the broker do before the branch office begins operating?

Correct Answer

B) Apply to the DRE for a branch office license for that location before the branch begins doing business

Cal. B&P Code §10163 requires a broker who maintains more than one place of business to obtain an additional license from the DRE for each branch office before that office begins doing business. A city business license or a fictitious business name filing may be required for other reasons, but neither satisfies the branch license requirement, and the requirement applies no matter how many licensees will work at the branch. A branch manager may also be appointed under Cal. B&P Code §10164, and that manager may be another broker or a salesperson with at least two years of full-time real estate experience within the five years preceding the appointment. Appointing a manager does not substitute for the branch license, and the responsible broker remains accountable for the branch.

Answer Options
A
Obtain a local business license from the city and notify the DRE within 30 days after the branch opens
B
Apply to the DRE for a branch office license for that location before the branch begins doing business
C
File a fictitious business name statement for the branch location and update the broker's main office license to reflect the additional address
D
Obtain DRE approval only if the branch office will employ more than one salesperson

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Related Topics & Key Terms

Key Terms:

DREbranch_officelicensebrokerBP_Code_10163

Related Concepts

A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.

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