In 2016, there were 50,201 exams administered, 22,916 people passed the California real estate exam and became licensed salesperson, according to Bureau of Real Estate January 2017 Indian Wells Forum Presentation. By comparison, just 11,400 people became agents in 2012.
This Bureau of Real Estate figures also shows 46,308 California Real Estate Salesperson Licensee renewed their license, which is 82% renewal rate, 3% higher compared to 2015. 28,482 California Real Estate Broker licensee renewed there license, which is 90% renewal rate, 2% higher compared to 2015.
At the 2007 peak of California’s real estate boom, 549,250 people had California Real Estate License. After the market crashed, the numbers dropped to 402,758 California Real Estate Licensee in 2014. Since then the number of Real Estate Licensee continued to increase. There were total 412,314 California Real Estate Licensee in December 2016.
“People are getting a California Real Estate license not only to become real estate agents but also to become property managers,” said Mark Kunce, Director/Instructor of Keller Williams San Diego Metro Real Estate School. “Vacation homes are so popular in Southern California, thanks to on-line rental platforms like Airbnb. Some people see the opportunities there.”
San Diego is home to more than 12,000 short-term rentals and is the fastest-growing market in the country, according to pillowhomes.com. However, one of the most common Real Estate license violations in 2016 was property management without a broker’s license or supervising broker.
Here are the Most Common Violations – 2016
• Improper Record Keeping (Failure to reconcile; Failure to maintain accurate records; Incomplete transaction files).
• Unlicensed Activities (Sales agents conducting broker activities without broker’s license; Property management without broker’s license or supervising broker).
• Fraud/Conversion/Misrepresentation (Straw-purchasers; Forging loan documents).
• Trust Fund Mishandling (Commingle; Failure to deposit trust funds in trust accounts; Failure to identify trust accounts; Allowing unbonded non-licensees as signatories on trust accounts).
“I encourage you to periodically look at the CALBRE web page titled “Licensee Alerts and Advisories” to keep apprised of issues affecting both real estate licensees as well as consumers in California. If you join Keller Williams San Diego Metro, we have a weekly meeting and Risk Management meeting. Our Broker or Transaction Compliance Officer will keep you out of court and safe with the the BRE. This is something unique about our brokerage many other brokerages do not offer.”