The California Department of Real Estate has reached a settlement with Real Estate Trainers Inc. and its former president, Lance McHarg, following an investigation into improper conduct related to the state’s real estate license exam.
According to the department, McHarg and Real Estate Trainers Inc.—a company founded in 1972 by Bob Morris and Larry McHarg—will pay $60,000 to cover penalties, damages, and the costs associated with the investigation and legal proceedings.
The case centered on allegations that McHarg took the California real estate license exam multiple times without passing. The department concluded that he did so intentionally to obtain information from the exams for use in educational materials sold by Real Estate Trainers Inc. for students preparing for the licensing test.
As part of the settlement terms, McHarg is prohibited for three years from applying for or participating in any way in a California real estate license examination. He is also barred from holding any position—including employment, instruction, management, control or ownership—in any real estate business or any business offering pre-license or continuing education courses related to real estate licenses. Additionally, McHarg is not permitted to hold a real estate license during this period.
The Department of Real Estate does not currently list McHarg as a licensed individual. Meanwhile, state records show that Real Estate Trainers Inc. remains an active business entity.
All employees affiliated with Real Estate Trainers Inc. are similarly barred for three years from participating in California real estate license examinations or offering any exam preparation courses that use content copied or subverted from official exams. The agreement also requires that McHarg be removed as an affiliate of the company.
Jeff Oboyski, who leads the department’s licensing division—including education and research as well as examination administration—stated: “The subversion of real estate license examination content is something [the Department of Real Estate] takes very seriously. Ensuring that those who attempt to compromise the integrity of our real estate license exams are held accountable for their actions underscores [the Department of Real Estate’s] commitment to consumer protection.”
