New California Law Changes California Sales License Exam

One of the new laws signed by Gov. Arnold Schwarzenegger to take effect this year is Business and Professions Code 10151, which will require completion of three college courses- real estate principles, real estate practice and one elective- before taking the California sales license exam.

This is the first major change in licensing requirements in 21 years. In January 1986 a law was passed requiring three college level real estate courses to qualify for a salesperson license, and the number of courses required for a broker license increased from six to eight. Until now, a license candidate only had to complete the real estate principles class and pass the state exam to receive a conditional license. They were allowed 18 months to complete the other two courses to remove the "condition."

The new law, which goes into effect after September this year, eliminates the conditional sales license. The requirements are being changed because the passing averages for the state exam have dropped into the 39 percent category and the California Association of Realtors determined that new licensees were not qualified or prepared to enter a challenging business.

"This change . . . will reduce the number of candidates entering the business but produce a better qualified licensee who is equipped to succeed in the business because they will have more than minimal education requirements," said Don Kalal, owner of CBI Real Estate School in Canoga Park.

In addition to the new law, a course in risk management will be required for all licensees who renew their license after July 1 this year. "With the average price house in the valley selling for more than $600,000, more transactions are threatened with litigation based on nondisclosure and other issues," said Kalal. "It is imperative that agents be better trained so they can operate effectively in a competitive career and marketplace."

For more information on any of the license changes and requirements, call CBI Real Estate School at (818) 715-0088.