Starting July 1, 2009, California real estate licensees will be required to have their license numbers printed and displayed on all solicitation materials intended to be the first point of contact with clients. This is due to the passing of Senate Bill 1461, a law that makes it mandatory for license numbers to be printed on everything from business cards, advertising flyers, stationery to all other materials used for communication within a professional relationship between you and your client. However, this will not include any advertisements in print or internet media and those big 'for sale' signs.
There are many reasons a client might want your license number. But first and foremost, it's against the law for a potential buyer or seller to pay an unlicensed person for real estate services. There are many ways for clients to check for your license status. One way is to just ask to see it, but they might not be comfortable in asking. Another way is to check on the Department of Real Estate's (DRE) website. The website is very user-friendly and it is easy for clients to look up your real estate license and find out your place of business, your license status and expiration date as well as any disciplinary actions taken against your license.
The definition used in the new law about putting your license on all "solicitation materials intended to be the first point of contact" seems somewhat vague, however, the bill allows the DRE Commissioner to draft regulations that identify on which materials an agent must disclose their license identification number and on which ones it is not required. Furthermore, the new bill will require that the agent's license number appear on all property purchase agreements. Since the standard purchase agreement, currently printed by the California Association of Realtors (CAR) already contains a place for that information, it will make it easier for that transition. Also, now that your license number will be on all contracts, it will also make it much easier for the escrow companies to do their part to ascertain that they don't issue any commission checks to any unlicensed persons. So, be proud of your license number and show it off because you worked hard for it. Oh and don't forget, it will be law next year.