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DRE Issues Revised Regulations for Disclosure of License Number on Solicitation Materials

ByLucy Lofrumento, Esq.

In June, 2009, the California Department of Real Estate (DRE) issuedrevised draft regulations clarifying SB 1461, thenew law that requires real estate licensees toinclude their license numbers on all "first point of contact" materials.

The revised regulations clarifythat:

(a) When a license number is required to be disclosed, the entire 8 digit number must be used, including any leading zeros.

(b) The license numbers ofemploying brokers or corporate brokers whose names or logos or trademarks appear on solicitation materials do not need to be included if the names and license numbers of their licensed employees or broker associates also appear on those materials.

Other than the above exception, if the name of more than one licensee appears on the solicitation materials, the license identification number of each licensee must be disclosed.

According to the current draft regulations, the definition of "first point of contact" materials still includes all solicitation materials intended to be the first point of contact with consumers,such as business cards, stationery, websites (when owned, controlled, and/or maintained by the soliciting real estate licensee), promotional and advertising fliers, brochures, email and regular mail, leaflets, and any marketing or promotional materials that encourage the consumer to contact the licensee about services for which a license is required, whether or not related to a specific property (i.e., "off-the-shelf" marketing materials would also be included).

As before, the definition of solicitation materials excludes advertisements in electronic media (including radio, cinema, television ads, and the opening section of streaming audio or video), print advertisements in any newspaper or other periodical, and "for sale" signs placed on or around a property.

The font size of the license identification numbers must be no smaller than the smallest font sized used elsewhere in the solicitation materials. However, the license number can appear at the bottom of the materials or on the back side of the materials. Any abbreviation of the words "license" and/or "number" is acceptable, but the entire 8 digit license number must be included.

SB 1461, which amends Section 10140.6 of the Business and Profession Code effective as of July 1, 2009,also requires that real property purchase agreements include the license identification numbers of all licensees who are acting as agents in the transaction.

The finalregulations areexpected to be published some time in late August or early September, 2009.

Questions regarding the new regulations may be directed to the DRE's Sacramento office, as follows:

Daniel E. Kehew, Real Estate Counsel
Department of Real Estate
P.O. Box 187000
Sacramento, CA 95818-7000
Telephone: (916) 227-0425
Fax: (916) 227-9458

The above article is provided for informational purposes only.It is not legal advice, nor does it create an attorney-client or any other relationship. You should always contact an attorney for legal advice applicable to your particular situation.