Corporation Licenses

Video:DRE Getting a Corporate License

A corporation may be licensed as a real estate broker through one or more of its officers who are brokers or have qualified for a broker license by examination within the twelve months preceding receipt of application. All acts of the licensed broker/officer(s) under this license must be performed only on behalf of the corporation.

For the appropriate fee, the license issued to a corporation's designated officer entitles that individual to conduct licensed activities on behalf of the corporation without payment of an additional license fee. (A fingerprint processing fee may be required of those applicants who have passed the broker examination, but do not currently hold a real estate license (see Fingerprint Requirements). The person applying for a designated broker/officer license must hold an officer title in the corporation. The term "broker/officer" is not an official officer title.

How To Apply

  1. Complete a Corporation License Application (RE 201) Denotes a PDF document..
  2. Properly completed Corporation Background Statement(s)(RE 212) Denotes a PDF document., if applicable.
  3. Submit appropriate fee.
  4. A completed Live Scan Service Request (RE 237) Denotes a PDF document., when applicable (see Fingerprint Requirements).
  5. Certificate of Status, Certification of Foreign Corporation, or Certification of Qualification (if issued within 30 days before the date the application is submitted to our office), or Articles of Incorporation (if filed with the California Secretary of State within six months before the date the application is submitted to our office). These documents can be obtained by any registered corporation from the California Secretary of State.
  6. Branch Office Application (RE 203) Denotes a PDF document., when applicable, for each additional office location being added.
  7. Certified copy of Fictitious Business Name Statement (DBA), when applicable, if the corporation will be doing business with any name other than the corporation name. See Fictitious Business Name Information (RE 282) Denotes a PDF document. for further information and specific instructions.
  8. A completed Salesperson Change Application (RE 214) Denotes a PDF document. for any salesperson the corporation intends to employ to conduct licensed activity as an employee of the corporation.
  9. Mail to:
    Department of Real Estate
    Business Support Section
    651 Bannon Street, Suite 503
    Sacramento, CA 95811

Corporation Background Statement (RE 212)

Section III of the Corporation License Application (RE 201) Denotes a PDF document. requires the designated officer who obtains the original corporation license to file a Corporation Background Statement (RE 212) Denotes a PDF document. for any director, chief executive officer, president, first level vice president(s), secretary, chief financial officer, and subordinate officers with responsibility for forming policy of the corporation and all natural persons owning or controlling more than 10% of its shares, if such a person has been the subject of any of the items enumerated in Regulation 2746. If none of the officers have been the subject of any of the items enumerated in that Regulation, a Corporation Background Statement (RE 212) is not needed. In all instances, the designated broker/officer must complete and sign the certification in Part III of the application.

Licensing Additional Brokers

Other officers who are acting for the corporation in any capacity which would require a broker license must be additionally licensed as officers of the corporation. Additional broker/officers may be licensed by submitting a completed Corporation License Application (RE 201) Denotes a PDF document. and the current fee. There is no limit to the number of broker/officers who may be added. All brokers who are applying for an additional broker/officer license must hold an officer title in the corporation. The term "broker/officer" is not an official officer title.

Designated Officer Responsibilities

The designated corporate officer is responsible for the supervision and control of the activities requiring a license which are conducted, on behalf of the corporation, by its officers and employees. The designated broker officer may, by resolution of the board of directors, assign supervisory responsibility over salespersons licensed to the corporation to additional licensed broker officers. A certified copy of the corporate resolution and Certification (Assignment of Supervisory Responsibility) (RE 210) Denotes a PDF document. must be forwarded to DRE within five days after the adoption or modification thereof if such supervisory responsibility has been delegated to other licensed broker officers.

TRANSFERING "DESIGNATED OFFICER" TITLE TO ANOTHER LICENSED OFFICER

To transfer the Designated Officer title to another licensed officer within the corporation, a Corporation Change Application (RE204A) must be submitted and signed by both the current (resigning) designated officer as well as the new incoming designated officer. If the resigning designated officer is unable to sign, the reason needs to be indicated on the signature line and one of the following documents must be attached to the completed Corporation Change Application (RE204A):

  • a personally signed resignation letter
  • a copy of the Resolutions of the Board with the corporate seal signed by all officers
  • a signed statement giving the date of death of the designated officer or a death certificate

If the new designated officer does not currently have an officer license for the corporation, a Corporation License Application (RE201) form must be submitted in addition to this form.

To keep the corporation continuously licensed with the Department, both the Corporation License Application (RE201) and the resignation of the former designated officer must be received in the same package. If all necessary documents are properly completed, the effective date of the substitution will be the date the Department received the application. If the documents are not received together, the license of the corporation, any branch offices, DBA(s), and employed salespersons and broker-associates will be cancelled.

NOTIFICATION OF DEATH OR INCAPACITY OF A SOLE "DESIGNATED OFFICER"

In the event of death or incapacity of a sole designated officer, a corporation may operate as a licensee without interruption under its existing license if a notice of the death or incapacity and a Corporation Change Application (RE204A) and/or Corporation License Application (RE201) for a new designated officer is postmarked or filed with the Department before midnight of the 10th business day after the event. In this rare situation, the application package should be mailed to the attention of the Licensing Business Support Supervisor, Department of Real Estate, 651 Bannon Street, Sacramento, CA 95815.

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