Since 2014, the California Department of Real Estate (DRE) has used its Cite and Fine Program to address minor and technical violations of real estate law. The program is designed to help licensees understand and comply with their legal obligations, particularly in cases where there is little or no consumer harm or risk to the public.
According to the DRE, “The goal of this program has never been to punish, but rather to help licensees take corrective action, reinforce professional standards, and avoid more serious violations. The funds collected from these citations are deposited into the Recovery Account, which compensates consumers who have suffered losses due to licensee misconduct. The program continues to support the Department’s broader mission: ensuring public protection while promoting licensee education and compliance.”
Citations are typically issued for low-level violations that do not warrant formal disciplinary actions such as suspension or revocation. These citations provide a detailed explanation of the violation and instructions on how it can be resolved. Depending on the circumstances, a citation may include an administrative fine or an Order of Correction.
Unlicensed activity is treated differently by the department. “Unlike citations issued to licensees, unlicensed persons may be fined up to $2,500 for each unlicensed act or transaction. This is not per case but per action,” according to the DRE. Multiple acts can result in significant fines; for example, ten unlicensed acts could lead to $25,000 in penalties.
The department encourages licensees who become aware of unlicensed activity to report it in order to protect both consumers and the profession’s integrity.
Licensees who receive a citation have the right to contest it if they disagree with its findings or believe there is mitigating information. However, timely response is crucial: “You must respond to the citation by the due date indicated… If you fail to respond by the deadline, the citation becomes final and can no longer be appealed.” If disagreement persists after initial review, a hearing before an administrative law judge at the Office of Administrative Hearings may be requested. In such cases, if the citation is upheld, additional costs related to investigation and prosecution may be added.
Failure to resolve a citation can result in more severe consequences.
“The Cite and Fine Program is not about punishment-it’s about partnership. The Department uses citations to help licensees take corrective action, stay informed, and ensure the Real Estate Law is followed in a way that benefits both consumers and the real estate community,” stated DRE officials.
For questions or assistance regarding citations, licensees are encouraged to contact DRE’s Citation Section for support.
