A good real estate agent is always working. Sometimes it’s easier for an agent to have documents and correspondences sent directly to his home so he can avoid taking an unnecessary trip to the office or he can impress certain clients with a particular zip code. While not overtly improper, using a non-brokerage office address for business can have unanticipated consequences.
California Business and Professions Code Section 10163
An agent who uses his personal address in advertisements and material documents can be perceived by the Department of Real Estate as running an unlicensed place of business. Every real estate brokerage’s “place of business” must be independently revealed to and licensed by the DRE. California law delegates the DRE Commissioner full authority to determine whether an office is being used as a “place of business” for real estate brokerage purposes and every such place must have an on-sight broker representative to oversee and manage licensed activities.
Audits
The DRE may audit any individual salesperson and responsible broker suspected of operating an unlicensed place of business. Normally, the DRE comes across a business card, flier, or website which seems to direct clients and cooperating brokers to a physical address not belonging to the salesperson’s broker (usually it’s the salesperson’s home address or second job). From there, the DRE may conduct an audit or a less formal inquiry to determine the extent of business operations being conducted at the location.
If the Commissioner determines that an unlicensed office exists, the Commissioner may remedy the situation by requiring that the location become licensed (evoking tax and zoning dilemmas) or restricting/revoking the responsible party’s license.
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Of course, agents reveal their home addresses to clients and cooperating brokers for any number of reasons – most are completely proper. Audits normally result when a non-brokerage address is posted on an advertisement or a material document to the transaction. As such, it’s advisable to have agents refrain from ever putting home addresses on their business cards, fliers, or any other medium used as the first point of contact with clients and the general public. More obviously, an agent should never post his personal address in lieu of his broker’s address on a listing agreement, agency disclosure, or purchase contract.
Cal Bus & Profs §10163 is reproduced as follows:
“If the applicant for a real estate broker’s license maintains more than one place of business within the State he shall apply for and procure an additional license for each branch office so maintained by him. Every such application shall state the name of the person and the location of the place or places of business for which such license is desired. The commissioner may determine whether or not a real estate broker is doing a real estate brokerage business at or from any particular location which requires him to have a branch office license.”




