Do Brokers Need More Legislated Regulations to do their Job?

You’ve probably read the news that California Governor Brown signed a new C.A.R.-sponsored bill, AB 345, into law. The law requires three hours of a real estate broker’s existing mandated continuing education (CE) be set aside for a course on the management and supervision of real estate licensed activity. This becomes effective on January 1, 2016.

Who will give the training for this three hour credit? If it comes from C.A.R., did they just create a new revenue stream for themselves?

Will a three hour course change anyone’s management skills?  Are brokers or agents benefiting? Is anyone benefitting from this new bill?

As just about everyone in our industry knows, the current law requires a real estate broker to exercise reasonable supervision over the activities of his or her salespersons. Existing law also requires real estate licensees renewing a license to complete 45 hours of California Bureau of Real Estate (CalBRE) approved CE. Currently, 15 hours of that CE requirement are earmarked for specified courses, while 18 hours are dedicated to consumer protection courses, with the remaining 12 hours of CE being elective.

This new mandated training for brokers focuses on how to manage real estate offices, salespersons, and broker associates, while also permitting salespersons to elect to take a course containing relevant information to assist them in understanding how to be effectively supervised by a responsible broker or branch manager.

Really?  Do we need more legislation telling brokers how to do their jobs?  Are they not already communicating well with their agents?  And do agents need to take a class on knowing how to be managed?

Think about the expense to tax payers to get this legislation before the state and signed into law by Brown?

Does California Really Need More Broker Legislation?

What do you think? We’d love to hear from you.