Since 2014, the California Department of Real Estate (DRE) has implemented a citation program aimed at addressing minor and technical violations of real estate law. The Cite and Fine Program focuses on helping licensees understand and comply with legal requirements rather than imposing punitive measures.
The DRE issues citations primarily for low-level violations that do not warrant formal disciplinary actions such as suspension or revocation. These citations are intended to prompt corrective action and increase awareness among real estate professionals. Funds collected from fines are directed into the Recovery Account, which is used to compensate consumers who have experienced losses due to licensee misconduct.
Citations issued to unlicensed individuals carry higher penalties, with fines up to $2,500 per unlicensed act or transaction. Multiple violations can result in significant financial penalties, potentially exceeding $50,000 if the activity is extensive. This approach is designed to protect consumers and uphold professional standards within the industry.
Licensees who receive a citation have the right to contest it but must respond by the deadline specified in the notice. If they disagree with the citation or fine after an initial review, they may request a hearing before an administrative law judge at the Office of Administrative Hearings. However, if the citation is upheld during this process, additional costs related to investigation and prosecution may be added to the original fine.
Failure to address a citation can lead to more severe consequences for licensees. The DRE encourages reporting of unlicensed activities by both professionals and members of the public as part of its efforts to maintain integrity in California’s real estate sector.
“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,” according to a statement from DRE officials. “The program continues to support the Department’s broader mission: ensuring public protection while promoting licensee education and compliance.”
The department advises anyone with questions about citations or needing assistance with compliance matters to contact its Citation Section for support.
