California Real Estate SalespersonPractice of Real Estate and DisclosuresMedium
Which of the following activities requires a California real estate license?
- AA trustee selling property pursuant to a court-ordered probate sale
- BAn attorney negotiating the sale of a client's home as an incidental part of legal representation
- CA property owner selling their own home without assistance
- DA person who, for compensation, negotiates the sale of real property on behalf of another
Show answer & explanationAnswer & explanation
Correct answer: D. A person who, for compensation, negotiates the sale of real property on behalf of another
California Business and Professions Code Section 10131 requires a real estate license for anyone who, for compensation, negotiates the sale, purchase, exchange, or lease of real property for another. Attorneys acting incidentally to legal practice, owners selling their own property, and court-appointed trustees acting under court order are statutorily exempt.
Why the other options are wrong
- A. Trustees acting under court authority in probate are generally exempt.
- B. Attorneys performing real estate negotiation incidental to legal practice are exempt from licensing.
- C. Owners are always exempt when selling their own property.
License Required Activities
A California real estate license is required for any person who negotiates real property transactions for compensation on behalf of another party.
- Bus. & Prof. Code 10131 defines licensed activities
- Exemptions exist for owners, attorneys (incidental), and certain court-appointed fiduciaries
- Compensation-for-negotiation is the key trigger for licensing
Memory trick: Compensation + negotiation for another = license required.