Since 2014, the California Department of Real Estate (DRE) has implemented a citations program to address minor and technical violations of real estate law. The program is designed to support licensees in understanding their legal responsibilities and encourage compliance rather than impose punitive measures.
The DRE states that the primary objective of the Cite and Fine Program is not punishment, but to help licensees correct mistakes, reinforce professional standards, and prevent more serious infractions. Funds collected from citation fines are deposited into the Recovery Account, which is used to compensate consumers who have experienced losses due to misconduct by licensees. This aligns with the department’s broader mission of protecting the public while promoting education and compliance among real estate professionals.
Citations are typically issued for low-level violations that do not warrant formal disciplinary actions such as suspension or revocation. These violations often indicate a need for increased awareness or correction on the part of the licensee. Each citation details the specific violation and outlines steps required for resolution. Depending on circumstances, an administrative fine or an Order of Correction may be included.
Unlicensed activity is treated seriously by DRE. Unlike citations issued to licensed individuals, unlicensed persons may face fines up to $2,500 per act or transaction—meaning multiple acts can quickly accumulate substantial penalties.
“These consequences are meant to protect the public and reinforce the value and responsibility that come with licensure,” according to DRE.
Licensees are encouraged to report any suspected unlicensed activity as a means of protecting both consumers and maintaining professional integrity within the industry.
Those who receive citations have a right to contest them if they disagree or have mitigating information; however, responses must be submitted by specified deadlines. Failure to respond in time results in finalization of the citation without further opportunity for appeal. If disagreement persists after initial review, recipients may request a hearing before an administrative law judge at the Office of Administrative Hearings; however, this step could result in additional costs if DRE seeks reimbursement for investigation expenses should its decision be upheld.
“The Cite and Fine Program is not about punishment—it’s about partnership,” says DRE. “The Department uses citations to help licensees take corrective action, stay informed, and ensure the Real Estate Law is followed in a way that benefits both consumers and the real estate community.”
For questions regarding citations or assistance with compliance matters, professionals are advised to contact DRE’s Citation Section directly.
