The California Department of Real Estate (DRE) has reached a settlement with Lance McHarg and Real Estate Trainers, Inc. (RETI), following an investigation into misconduct related to the state’s real estate licensing examination.
According to the DRE, McHarg, who was formerly president of RETI, took the real estate license exam multiple times without passing. The department determined that he subverted exam content in order to use it in educational materials provided by RETI for students preparing for the licensing test.
“The subversion of real estate license examination content is something DRE takes very seriously,” said Assistant Commissioner Jeff Oboyski, who oversees the DRE’s Licensing Division. “Ensuring that those who attempt to compromise the integrity of our real estate license exams are held accountable for their actions underscores DRE’s commitment to consumer protection.”
As part of the settlement, McHarg is barred for three years from applying for or participating in any California real estate license examination or holding a real estate license. He is also prohibited from being employed by, instructing at, managing, controlling or owning any business involved in real estate or offering pre-license or continuing education courses related to real estate licenses.
Additionally, RETI and its officers, directors, instructors and affiliates are similarly barred for three years from participating in state licensing exams or offering courses that include questions copied or taken from official DRE exams. The agreement also requires McHarg’s removal from all roles at RETI.
McHarg and RETI must pay $60,000 in penalties and costs associated with the investigation and legal proceedings that led to this action.
The Education and Research section of DRE reviews and approves all continuing education and statutory/pre-license qualification courses offered by private providers. Currently there are 63 approved providers offering 525 continuing education courses as well as 163 providers offering 859 statutory/pre-license courses statewide.
The DRE regulates over 434,000 licensees under various laws governing real estate transactions in California. Its mission includes protecting public interests through regulation, licensure and enforcement actions focused on consumer protection.
