Licensees: There is a Legal Requirement for the Self-Reporting by Real Estate Licensees of Felony Charges, Convictions of Any Felony or Misdemeanor, and Any Disciplinary Actions Taken by Another Licensing Authority.
Pursuant to California Business and Professions Code, section 10186.2, a real estate licensee must report any of the following to the California Bureau of Real Estate (CalBRE):
- A felony charge – through an indictment or an information. An Indictment is a formal charge brought by a grand jury. An information is similar to a complaint, but filed after a preliminary hearing;
- A conviction of any misdemeanor or felony;
- Any disciplinary action taken by another licensing entity in California or another state or agency of the Federal Government.
This report must be made in writing within 30 days “of the date of the bringing of the indictment or the charging of a felony, the conviction, or the disciplinary action.” Failing to make the report shall be cause for discipline.
The law was put into place so that the CalBRE could become aware of and track the felony charges and the disciplinary cases, and determine if the reported conviction is a basis for disciplinary action.
The CalBRE has developed form RE 238 – Indictment, Conviction, and Disciplinary Action Notification – for the purpose of this reporting. However, any form of written communication will meet the notification requirement.
The language in the law is broad and inclusive. The clear requirement to report any felony or misdemeanor conviction within the relevant 30 day window(s) does not permit a licensee to exclude or fail to report what he or she considers minor, insignificant, or non-substantially related convictions. “Any” clearly includes “any”, “every”, and “all” misdemeanor and felony convictions, including those following the entry of a “no contest” plea. For the felony charge, there does not have to be a conviction for the reporting requirement to kick in. As for the disciplinary action, there does not have to be final discipline imposed for the report to be made, nor does the discipline have to rise to the level of suspension or revocation.
If you find yourself or someone you know in this position make sure you reach out to a qualified professional license defense attorney. Miranda McCroskey can be reached at 714.389.2257 or Miranda@RELDlaw.com