Applicants for a real estate license in California must meet the California Department of Real Estate (CalDRE) standards for eligibility. DOJ and FBI criminal background checks are performed on all applicants to ensure that the applicant can function as a real estate broker or sales agent.
A further investigation into CalDRE's criminal screening process is warranted to identify the illegal behavior that results in the application being denied and what conduct does not cause ineligibility for a real estate license.
Crimes That Bar Licensure In Real Estate
The disclosure of all prior convictions and pending criminal charges is required for all real estate license applicants.Convictions include:
- a guilty verdict by judge or jury;
- a guilty plea;
- a nolo contendere (no contest) plea, and
- bail forfeiture within any court system (state, commonwealth, possession, or country).
The CalDRE lists the following convictions that commonly result in the application being denied:
- assault with intent to commit rape;
- bribing a public officer or employee;
- burglary;
- criminal conspiracy;
- embezzlement;
- extortion;
- filing false police or fire reports;
- forgery;
- fraud;
- grand and petty theft;
- murder;
- obtaining money by false pretense;
- perjury;
- sexually-related conduct affecting a non-consenting observer or participant;
- possession of drugs for sale or transport;
- soliciting a lewd act from a minor or non-consenting adult, and
- tax evasion.
CalDRE's Review of Criminal Background and "Substantial Relationship"
Each conviction is carefully considered by the CalDRE before the decision is made to approve or deny the application.A broad recommendation to deny an applicant occurs when the applicant:
- has a felony or misdemeanor conviction substantially related to one's performance as a licensed real estate professional;
- had a business/professional license against which a state or federal government agency took administrative action or
- failed to disclose any criminal charges or disciplinary action against them.
A substantial relationship exists when criminal activity includes:
- fraudulently taking or appropriating another person's funds or property;
- counterfeiting, forging, or altering an instrument or making a false statement;
- willfully attempting to gain financial benefit through nonpayment of government taxes, assessments, or levies;
- bribery, fraud, deceit, or misrepresentation;
- sexual conduct affecting a non-consenting observer or participant;
- willfully violating or failing to comply with laws controlling professional real estate licenses;
- willfully engaging in business activity without obtaining a license or permit required to carry out the activity;
- committing an unlawful act for financial or economic benefit or with the intent of harming another person or property;
- willfully failing to comply with a court order;
- conduct that demonstrates a repeated disregard for the law or
- two or more convictions involving alcohol consumption or drug use when at least one of the convictions involves driving under the influence. [CalDRE Regulations §2910]
Rehabilitation efforts and the severity of each crime are considered by the CalDRE, such as:
- payment of restitution to the injured party;
- expungement of convictions;
- expungement of sex offender registration;
- enrollment in or the completion of an economic self-improve course(s);
- the discharge of debts; and,
- if two years have passed since the most recent criminal conviction. [CalDRE Regs §2911]
Is There Anything I Can Do? I Have Changed.
Yes, there is something you can do. You can file for relief, commonly referred to as having your record expunged. If you have completed your sentence and stayed out of trouble, you may be a candidate for "expungement."What Crimes Cannot Be Expunged?
While the majority of crimes can be expunged, there are a few that are not subject to relief from PC 1203.4.
- PC286(c) - Sodomy through means of force, violence, or fear.
- PC287(c) or of former section PC288a - Oral copulation with a minor under 14 years of age
- PC288 - Lewd acts with a minor under 14 years of age
- PC288.5 - Sexual abuse of a minor with whom you have recurring access
- PC289(j) - Sexual penetration of a minor under 14 years of age and 10 years younger
- PC311.1, PC311.2, PC311.3 - Child pornography
- PC311.11 - Child pornography
- Any misdemeanor falling within the provisions of VC42002.1 - Failure to stop and submit to inspection
- Any felony conviction pursuant to subdivision (d) of Section 261.5 - Statutory Rape
- Violations for which a defendant has served time in prison, excluding County-Prison eligible violations under the 2011 Realignment Act
A real estate application/license shall not be denied solely on:
- a felony conviction for which a certificate of rehabilitation was issued;
- a conviction that has been dismissed under Cal Pen Codes §1203.4, §1203.4a, or §1203.41
- a misdemeanor upon completion of the criteria of rehabilitation developed by the board.
So, if you have taken any of the above steps since your conviction, you may have a chance at having your application approved even with your criminal history. CalDRE RE Form 222: Applicant Eligibility Information
Will Delinquent Tax and Child Support Payments Result in a Denial?
The rejection of an applicant is required if the applicant:- has outstanding tax obligations to the Franchise Tax Board (FTB) or State Board of Equalization, over $100,000; or
- failed to comply with court-ordered child support payments.
Exceptions to Being Denied Based on Delinquency
If the applicant meets all other qualifications, except for being current with child support payments, the CalDRE may issue a valid license for 150 days. This allows the applicant to pay any back child support payments. To avoid license revocation, clearance from the Department of Child Support Services must be received by the CalDRE within 150 days. The applicant's cost for processing the temporary license is $95. [CalDRE Regs §2716.5]If the applicant is denied only due to outstanding tax obligations, the CalDRE may issue a license valid for 90 days, within which the debt is to be satisfied. The CalDRE must receive confirmation from the FTB or BOE that the applicant is paid in full, or the license will be revoked.
Applicants are not entitled to a refund of application fees. [Cal Bus & Prof Code §494.5(g)(3)]
Even though delinquent tax or child support payments are not considered by the CalDRE to indicative of being unfit for licensure, these delinquencies cause an automatic block to application approval.
