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California DRE Has Busy Year Revoking Licenses

The ""California State Department of Real Estate"":http://www.dre.ca.gov/ (DRE), which is responsible for licensing and regulating activities of real estate brokers and salespersons, had to take action against more license holders compared to the previous year.

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In the most recent fiscal year ending June 30, 2012, DRE has suspended, surrendered, and revoked 1,109 real estate licenses. The total represents a 100 percent increase compared to the 553 actions taken five years ago.

DRE real estate license revocations increased nearly 14 percent to 781, up from 686 revocations in the last fiscal year.

DRE license suspensions were up nearly 80 percent at 190 licenses compared to 106 suspensions in the previous year.

License surrenders, which occur when license holders give up their rights while a disciplinary action is pending, rose 20 percent to 138 compared to 115 in the prior year.

The DRE also issued 213 Desist and Refrain Orders, up 170 percent compared to five years ago when 79 were issued. Desist and Refrain Orders are generally issued to prevent an unlicensed person or entity from engaging in acts for which a license is required.

""While purging the unscrupulous operators from the real estate industry is vitally important to protecting consumers, it is only one piece to the puzzle. Consumer education is the key piece to really protecting consumers. We need to educate consumers on how to avoid scams,"" said Bill Moran, DRE Enforcement Chief and Acting Chief Deputy Real Estate Commissioner.

The DRE contributed the rise in disciplinary actions to the collapse of the real estate market, which left more distressed homeowners vulnerable to rescue scams.

About Author: Esther Cho

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