Page 559 - Principals of Real Estate

Unit 15 Getting and Keeping Your Real Estate License 549

The Real Estate Commissioner is empowered to adopt regulations to enforce
the Real Estate Law. Duly adopted regulations become part of the California
Code of Regulations and, in effect, have the force and authority of the law
itself. Therefore, all licensees and prospective licensees should be thoroughly
familiar with the Real Estate Commissioner’s Regulations. They should be
considered in conjunction with the law, as they specifically outline procedures
directed and authorized by the statutes. The following is a partial listing of
the Business and Professions Code sections that are of utmost importance to
those who practice real estate.

The Business and Professions Code, Article 3, Section 10175 authorizes the
Real Estate Commissioner to enforce the Real Estate Law. Upon grounds
provided in this article and the other articles of this chapter, the license of
any real estate licensee may be revoked or suspended in accordance with the
provisions of this part relating to hearings.

Although most violations of Real Estate Law occur under sections 10176
and 10177 of the Business and Professions Code, we are including some of
the other sections that need discussion and mention. Section 10176 refers
to actions committed while conducting business under a real estate license.
Section 10177 refers to circumstances when a licensee is not necessarily
acting as an agent.

Section 10176: Violations When Acting as
an Agent in a Real Estate Transaction

The Commissioner may upon his or her own motion, and shall upon the
verified complaint in writing of any person, investigate the actions of any
person engaged in the business or acting in the capacity of a real estate licensee
within this state. He also may temporarily suspend or permanently revoke
a real estate license at any time where the real estate licensee, in performing
or attempting to perform any of the acts within the scope of this chapter, has
been guilty of any of the following:

Section 10176(a) Misrepresentation
Licensee made substantial misrepresentations. A misrepresentation is a false
statement of fact.

Section 10176(b) False Promise
Licensee made false promises. A false promise is an incorrect statement about
what someone is going to do in the future.