Since 2014, the California Department of Real Estate (DRE) has used a citation program to address minor and technical violations of real estate law. The department states that this approach is primarily aimed at helping licensees understand and comply with legal requirements, rather than imposing punishment.
The Cite and Fine Program targets low-level violations that do not warrant formal disciplinary action such as suspension or revocation. According to the DRE, “The goal of this program has never been to punish, but rather to help licensees take corrective action, reinforce professional standards, and avoid more serious violations.” Funds collected from citations are placed into the Recovery Account, which compensates consumers who have experienced losses due to misconduct by licensees.
Citations typically provide a detailed explanation of the violation and instructions on how it can be resolved. Depending on the circumstances, an administrative fine or an Order of Correction may be issued. The DRE emphasizes that unlicensed activity is treated seriously; individuals found conducting real estate business without a license can be fined up to $2,500 per unlicensed act or transaction. Multiple violations can result in fines totaling tens of thousands of dollars.
“These consequences are meant to protect the public and reinforce the value and responsibility that come with licensure,” according to the department.
Licensees are encouraged to report suspected unlicensed activity in order to safeguard both consumers and professional standards within the industry.
If a licensee disagrees with a citation or believes there is mitigating information, they have the right to contest it by responding before the deadline indicated in the notice. Failure to respond means that “the citation becomes final and can no longer be appealed.” If disagreement persists after initial review, a hearing before an administrative law judge at the Office of Administrative Hearings may be requested. However, if the citation is upheld at this stage, additional costs related to investigation and prosecution may be added.
Failure to resolve citations could lead to more severe consequences for licensees. The DRE reiterates its position: “The Cite and Fine Program is not about punishment—it’s about partnership. 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 or assistance regarding citations, professionals are advised to contact DRE’s Citation Section for support.
