In the News – Selling Real Estate in Another State Without a Proper License

In a recent California Association of REALTORS® real estate selling seminar, California Commissioner Wayne Bell answered this sticky real estate selling question: “Is it a California licensing violation for a California real estate licensee to transact out of state sales in violation of the out of state licensing law?”

Reciprocity is Not a Given
An on-going contact with the real estate commissioners of neighboring states, Commissioner Bell noted this question is currently under investigation by the California Bureau. He also pointed out the obvious: He suspected California licensees would not particularly care for it if agents from and licensed in other states transacted business in the Golden State.

Under Review
Though Commissioner Bell acknowledged the matter has merited further investigation and is not implicitly clear, he cited California Business and Professions Code (B&P) 10176(i) and 10177(j) regarding misrepresentation, fraud and dishonest dealings in real estate selling. He then expressed that the position of the California Bureau of Real Estate appears to convey that it is fraudulent to enter another state without a license from that state, and that such an action is unlawful. His word to the wise: Don’t do it.

Obtaining Proper Licensure
Are you putting your license at risk over a short form or state law exam? Many states offer reciprocity to real estate licensees from other states, particularly bordering ones, though agreement details vary widely from state to state. Those that don’t offer direct reciprocity typically don’t make licensure too heavy a burden for licensed agents. However, they do offer state real estate law-specific tests, allowing those looking to expand their reach to do so without the need to repeat basic real estate licensing coursework.

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