What Are Your Requirements When Selling, Buying, or Leasing Your Own Home As a Licensee?

Today, we are going to discuss a crucial aspect of our industry that is often overlooked or misunderstood – the obligation of licensees in all transactions involving them or their immediate family members.

At the outset, it’s important to recognize that the real estate industry is heavily regulated to protect consumers and maintain the integrity of the market. In California, the Department of Real Estate (DRE) lays out specific regulations that licensed brokers or salespersons must adhere to. One of these key regulations is the obligation to handle all transactions involving licensees and their immediate family members as licensed transactions.

Why the Regulation?

The purpose of this regulation is to ensure that all transactions are conducted with the necessary oversight and adherence to professional standards. It’s about maintaining transparency and accountability. Real estate transactions often involve significant financial and emotional investments, and it is crucial for all parties involved to have confidence in the process.

No Picking and Choosing

As per the California DRE regulations, licensees cannot pick and choose when to use their license. This means that any transaction a licensee or their immediate family member is involved in must be handled as a licensed transaction. This includes not only buying or selling property, but also leasing and renting.

Licensees may not conduct these transactions privately or without professional supervision. Even if it’s a transaction involving a family member’s home, you are expected to handle it as a licensed transaction, flowing through your brokerage.

The Brokerage’s Role

The brokerage has a crucial role to play in ensuring the proper supervision of transactions. All transactions must flow through the brokerage. This means that the brokerage is involved in the oversight of the transactions, thereby assuring that the required legal and professional standards are met.

The brokerage is responsible for reviewing documents, ensuring legal compliance, supervising advertising and negotiations, and generally making sure that the licensee is acting in an ethical, professional, and legal manner. This safeguards the interests of all parties involved and upholds the reputation of the industry.


In essence, as a licensed real estate professional, your obligations extend beyond the office. Any transaction that you or an immediate family member is involved in must be treated with the same professionalism and adherence to regulations as a transaction with a client.

Failing to abide by these regulations can lead to serious consequences, including disciplinary action by the DRE. Therefore, it’s not just about compliance – it’s about upholding the values of transparency, accountability, and professionalism that define our industry.

Remember, our goal as real estate professionals is not just to facilitate transactions, but to ensure that those transactions are conducted with the highest degree of integrity and professionalism. By adhering to these regulations, we can uphold the trust that the public places in us, ensuring a healthy and vibrant real estate market for all.

Let’s strive to be not just good agents, but great ones, and raise the bar of professionalism in real estate.



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