SACRAMENTO-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that the California State Department of Real Estate, which is responsible for licensing and regulating the activities of real estate brokers and salespersons, has revoked a record number of real estate licenses in the last fiscal year.
The DRE also accepted a record number of license surrenders from licensees facing disciplinary action. All told, a record 1,109 licenses were suspended, surrendered and revoked in Fiscal Year 2011/12, which ended June 30, 2012.
“While purging the unscrupulous operators from the real estate industry is vitally important to protecting consumers, it is only one piece to the puzzle,” explains Bill Moran, DRE enforcement chief and acting chief deputy real estate commissioner. “Consumer education is the key piece to really protecting consumers. We need to educate consumers on how to avoid scams.”
For Fiscal Year 2011/12, the DRE revoked 781 real estate licenses, up nearly 14% from the 686 revocation actions last fiscal year. The DRE also suspended 190 real estate licenses for cause, up nearly 80% compared to the 106 license suspensions in the prior year. License surrenders also peaked at 138, up 20% from 115 the previous fiscal year.
The 1,109 license suspensions, surrenders and revocations represent a 100% increase compared to five years ago when suspensions, surrenders and revocations totaled 553, according to the DRE.
Moreover, the DRE issued a record 213 Desist and Refrain Orders, which are most typically issued to stop an unlicensed person or entity from engaging in acts for which a license is required, according to a prepared statement. The 213 Desist and Refrain Orders represent an increase of 170% compared to the 79 issued five years ago.
The collapse of the real estate market clearly contributed to the record number of disciplinary actions. With the large number of financially stressed homeowners, the table has been set for scammers involved in foreclosure rescue and short sale scams, says a prepared statement. With respect to foreclosure rescue scams, since 2010 the DRE has filed nearly 500 accusations and Desist and Refrain Orders against nearly 1,400 respondents who were involved specifically in illegal foreclosure rescue and short sale scams.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
