A corporation may be licensed as a real estate broker through one or more of its officers who are brokers or have qualified for a broker license by examination within the twelve months preceding receipt of application. All acts of the licensed broker/officer(s) under this license must be performed only on behalf of the corporation.
For the appropriate fee, the license issued to a corporation's designated officer entitles that individual to conduct licensed activities on behalf of the corporation without payment of an additional license fee. (A fingerprint processing fee may be required of those applicants who have passed the broker examination, but do not currently hold a real estate license (see Fingerprint Requirements). The person applying for a designated broker/officer license must hold an officer title in the corporation. The term "broker/officer" is not an official officer title.
Section III of the Corporation License Application (RE 201) requires the designated officer who obtains the original corporation license to file a Corporation Background Statement (RE 212) for any director, chief executive officer, president, first level vice president(s), secretary, chief financial officer, and subordinate officers with responsibility for forming policy of the corporation and all natural persons owning or controlling more than 10% of its shares, if such a person has been the subject of any of the items enumerated in Regulation 2746. If none of the officers have been the subject of any of the items enumerated in that Regulation, a Corporation Background Statement (RE 212) is not needed. In all instances, the designated broker/officer must complete and sign the certification in Part III of the application.
Other officers who are acting for the corporation in any capacity which would require a broker license must be additionally licensed as officers of the corporation. Additional broker/officers may be licensed by submitting a completed Corporation License Application (RE 201) and the current fee. There is no limit to the number of broker/officers who may be added. All brokers who are applying for an additional broker/officer license must hold an officer title in the corporation. The term "broker/officer" is not an official officer title.
The designated corporate officer is responsible for the supervision and control of the activities requiring a license which are conducted, on behalf of the corporation, by its officers and employees. The designated broker officer may, by resolution of the board of directors, assign supervisory responsibility over salespersons licensed to the corporation to additional licensed broker officers. A certified copy of the corporate resolution and Certification (Assignment of Supervisory Responsibility) (RE 210) must be forwarded to DRE within five days after the adoption or modification thereof if such supervisory responsibility has been delegated to other licensed broker officers.
To transfer the Designated Officer title to another licensed officer within the corporation, a Corporation Change Application (RE204A) must be submitted and signed by both the current (resigning) designated officer as well as the new incoming designated officer. If the resigning designated officer is unable to sign, the reason needs to be indicated on the signature line and one of the following documents must be attached to the completed Corporation Change Application (RE204A):
If the new designated officer does not currently have an officer license for the corporation, a Corporation License Application (RE201) form must be submitted in addition to this form.
To keep the corporation continuously licensed with the Department, both the Corporation License Application (RE201) and the resignation of the former designated officer must be received in the same package. If all necessary documents are properly completed, the effective date of the substitution will be the date the Department received the application. If the documents are not received together, the license of the corporation, any branch offices, DBA(s), and employed salespersons and broker-associates will be cancelled.
In the event of death or incapacity of a sole designated officer, a corporation may operate as a licensee without interruption under its existing license if a notice of the death or incapacity and a Corporation Change Application (RE204A) and/or Corporation License Application (RE201) for a new designated officer is postmarked or filed with the Department before midnight of the 10th business day after the event. In this rare situation, the application package should be mailed to the attention of the Licensing Business Support Supervisor, Department of Real Estate, 651 Bannon Street, Sacramento, CA 95815.
This Google translation feature is provided for informational purposes only as DRE is unable to guarantee the accuracy of this translation. Please consult a translator for accuracy if you are relying on the translation or are using this site for official business.