RE Agent License law

2 Replies

I am considering getting my RE license in California. I also want to invest out of state. While I don't plan to swindle anybody, I also know that agents have a fiduciary responsibility, specifically when disclosing information. Would those responsibilities carry outside state boarders? 

Hi Dietrich,

I’m not sure I completely understand your question. By getting licensed in CA, you will only be able to practice real estate on behalf of others within CA. To do so outside of the state, you will need to be licensed for those individual states. To practice for yourself, you do not need to be licensed.

In regards to being a fiduciary, yes, there are no geographic bounds. A lot of what agents do to provide representation to their clients requires a high regard for ethics. Those agents who do not hold those values show themselves quickly in our industry and gain a reputation even faster. 

I would never let anything whatsoever (geographic boundaries, beliefs, experience, etc.) cloud my integrity or fiduciary responsibility to a client, fellow professional or simply, person. 

State law will dictate what is required to be disclosed and is something that should be followed. If you ever have any questions, your managing broker or designated broker would be a great person to consult.

Hope this helps?

Thank you very much for your response. It does help. 

I do not, at all, want to imply bad intentions. I  was reading some articles warning investors that becoming an agent could put you in an unintended legal situation when negotiating the price of a house for yourself. And I was curious if the legal obligations cross boarders when one becomes an agent. I don't want to negotiate what I consider a fair purchase price of a house that needs repair, only to be sued (and lose) because I didn't disclose something I didn't realize I should have. 

I do know I can't sell outside of CA. I have an opportunity to work with a broker here, part time, and would like to take advantage without creating a large roadblock to investing outside state boarders. 

Cheers