When Is a Brokers licenses Needed in California for Property Management

            Someone who acts on behalf of another concerning real estate needs to have or have their license under a Department of Real Estate (DRE) broker. Many times, the term agent refers to a real estate agent but some one who is hired to conduct the duties of property management must be and real estate broker or must have their licenses under one.

However, there are some duties an unlicensed employee may perform.

• They may show potential tenants the rental units available and the facilities
• They may provide prospective tenants with information concerning the rent rates and the rental and lease agreement provisions
•  They may provide the prospective tenants with the rental forms and answer general questions regarding completing them
• They may accept tenant screening fees
• They may accept signed lease agreements from tenants
• They may accept security and rent deposits

Any licensed employee may preform any of the task which an unlicensed person may , but they are also given the authority to perform

• Landlord related solicitations
• Entering into property management or leasing agent agreements with the landlords
• Listing, renting, or leasing negotiations
• Care for and oversee the maintenance of a property
• Marketing of the listed space
• The accounting

A person who has been granted the power of attorney or is the “attorney in fact” is exempt from this licensing. However, this power is temporary for it can not be used as the authority to continuously manage real estate.

There is another person who may perform the duties of the property manager and does not need a DRE license. The property owner is not acting in the behalf of another person and therefore he or she are not required to have the DRE brokerage licenses. (note) A real estate agent has placed their license under a real estate broker. The agent does not have the authority to act in the compacity of a broker. Only brokers may enter into the contracts. An agent is the representative of the broker and the broker is paid and disperse the moneys according to the agreement they have with their agents.

Note: Images on this blog site are from a free source or taken by the author. No image or group of photos is intended to represent the people the author serves. The author does not care about Race (that is a politically correct term that he does not like because we are all of the same Race, the Human Race. He prefers the term ethnicity, color, religion, sex, gender, marital status, disability, genetic information, national origin, source of income, Veteran or military status, ancestry, citizenship, primary language or immigration status.) He is a service provider for all people. We will all rise together when we band together and help one another. Joseph Erwin is a Real Estate Broker, DRE # O2131799, and a CA general contractor # B 696662. He’s a member of the CRMLS and The East Valley Association of Realtors located in the Inland Empire region of Southern California. This writing is not to be used as legal counsel the author is not a lawyer and does not give legal advice other than consult a lawyer before acting.