New California law changes requirements for real estate brokers

Stan Smith and Assemblyman Jacqui Irwin (Jacqui Irwin, Stan Smith, Getty)

A new California law adds requirements to obtain a real estate broker’s license.

Governor Gavin Newsom signed into law AB 2745 on August 22, stipulating that to sit for the state broker’s exam, a candidate must have at least two years of general real estate work experience. The previous law required a candidate broker to have obtained a real estate license, but not have recent experience in the field.

The bill’s author, Assemblywoman Jacqui Irwin (D-Thousand Oaks), said the law will strengthen professional standards in California’s real estate industry. The law will specifically protect candidate brokers who may have had work experience years ago, but no current knowledge deemed necessary to operate independently or manage others.

“With this law change, California will ensure that as the dynamic real estate industry continues to evolve, licensed brokers have the necessary education and current experience to operate within the profession,” Irwin said. in an emailed statement.

There were no official sponsors of AB 2745. However, representatives from the California Department of Real Estate suggested that Irwin submit the bill and worked closely with his office during its journey through the California legislature.

Stan Smith, an executive sales manager for Douglas Elliman who served the California Association of Realtors as state director from 1989 to 2020, said the law was a step in the right direction.

“I’ve been doing this for so long and I’ve seen so many bad actors in this business,” he said. “We want people in this profession to be qualified. It’s definitely better than what was there. I wish it had gone further.”

Smith believes real estate work experience is crucial before working as a broker or in management.

“This job is so difficult and complex that it really takes real-life experience to be able to properly mentor and train salespeople,” he said. “I’ve been in Beverly Hills real estate for 44 years and a manager since 1995, and every day there are new problems and new problems.”

Kristan F. Talley