Can you rent a real estate broker's license? California-based deal.

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January 31, 2025

by a searcher from INSEAD in San Francisco, CA, USA

I'm working on a property management company deal and the broker mentioned to me that in order to run the company I'd need a DRE Broker's License. At least on the CSLB side of things it's fairly straightforward to "rent" a license or rollover equity. Does anyone know how things work when it comes to companies where real estate license is required?

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Reply by a searcher
from Northwestern University in Los Angeles, CA, USA
One option is to work out an agreement with a broker to fulfill the requirement - from a regulatory perspective, certain property management tasks are required to be performed by or under the supervision of a broker. The CA Dept of RE has documents available on their website that explains which tasks can be done by ‘assistants’ to the broker. If you think you’d work well with the seller / existing broker, best option is to come to an agreement and retain them as an employee to meet licensing requirements.
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Reply by a searcher
from Keller Graduate School of Management of DeVry University in San Francisco, CA, USA
A broker is needed when rent is being collected, leases are being negotiated and soliciting tenants. This applies to commercial and multifamily over 4 units.
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