New California Law Alters Requirements for Real Estate Brokers

New California Law Alters Requirements for Real Estate Brokers
Stan Smith and Assemblymember Jacqui Irwin (Jacqui Irwin, Stan Smith, Getty)

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

Gov. Gavin Newsom signed AB 2745 into law on Aug. 22, stipulating that to sit for the state’s broker’s exam an applicant must have at least two years of general real estate job experience. Previous law required a broker applicant to have earned a real estate license, but not have recent on-the-job experience.

The bill’s author, Assemblymember Jacqui Irwin (D-Thousand Oaks), said the law will strengthen professional standards in California’s real estate business. The law will specifically guard against broker applicants who may have had job experience from years ago, but no current knowledge deemed necessary to operate independently or manage others.

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

There were no official sponsors of AB 2745. However, representatives of California’s Department of Real Estate suggested Irwin submit the bill and worked closely with her office as it made its way through the California legislature.

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

“I’ve done this for so long, and have seen so many bad actors in this business,” he said. “We want people in this business to be qualified. It is certainly better than what was there. I wish it had gone farther.”

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

“This business is so difficult and complex that you really need real-life experience to adequately be in a position to monitor and train salespeople,” he said. “I’ve been in Beverly Hills real estate for 44 years and been a manager since 1995, and every day there are new problems and new issues.”