New California Law Mandates Broker Supervision Course

Recently, the California Bureau of Real Estate BRE issued the following advisory:

"In July 2015, the California Legislature passed and the Governor signed Assembly Bill 345 .AB 345, Frazier, amending Section 10170.5 of the California Business and Professions Code the Code. The provisions of this Code section take effect on January 1, 2016. The essence of this amendment requires that broker licensees complete upon their first renewal as a broker, a three-hour continuing education course in the management of real estate offices and supervision of real estate activities Management and Supervision. Moreover, salesperson and broker licensees must complete an eight-hour continuing education survey course for subsequent renewals that includes topics in ethics, agency, trust fund handling, fair housing, risk management and management and supervision."

This has an effect on licensees, to be sure; but hardly a momentous one. "Ok, there will be some new and different courses required as part of the 45-hour continuing education requirement. Something more to keep track of, but hardly a big deal."

It is, however, a big deal for the providers of continuing education. If they want to be able to provide a full complement of required courses, they will need to have their Management and Supervision course written, approved by the BRE, and ready for delivery by January of 2016. They will also need to have made, and had approved, the mandated modifications to the eight-hour survey course. Of course they can have courses approved and ready later than January; but who will want to have a "coming soon" sign out when the competition is ready to deliver?

The Bureaus requirements for the content of the 3-hour course are specific and daunting. Guidelines have been published "to assist sponsors in preparing a Management and Supervision course" The following list is taken from those guidelines. It is a list of topics that must be included in the course. [I have omitted Code references and I have numbered the topics for ease of reference.]

All of the topics listed are taken from existing Commissioners Regulations and the Business and Professions Code. Still, some may come as a surprise such as 8 and some may cover ground that will be new to many e.g. 10.

The suggested guidelines also contain this piece of advice: "Coverage of appropriate court decisions and practical examples and/or case studies as >

The guidelines note that "Instruction time, including exam time, must total a minimum of 150 minutes three >

Bob Hunt is a director of the California Association of Realtors. He is the author of Real Estate the Ethical Way.