California Real Estate License Background Check: The 7-Year Rule & AB 2138

A real estate license background check decides if you qualify to become an agent in California.

The Department of Real Estate (DRE) requires all California license applicants to take one. This is because they want to maintain the integrity and safety of the industry.

So, what happens when you want to get your real estate license but have a criminal history? Does this mean it can’t happen?

Wrong! Even with a criminal background, you can still qualify for a license in California.

In this article, you will learn what will disqualify you, how background checks work, and how you can submit a real estate live scan.

What Disqualifies You From Getting a Real Estate License?

Outside of not fulfilling the basic requirements, there is one thing that disqualifies you from a license: your criminal background check. A real estate license background check occurs when the Department of Real Estate (DRE) reviews what crimes (if any) you have committed. Depending on the nature of these crimes, the DRE may stop you from practicing real estate in California.

However, the DRE doesn’t disqualify you for just any crime. According to § 10177(b) of the Business and Professions Code, the DRE will disqualify applicants based on crimes "Substantially related to the qualifications, functions, or duties of a real estate licensee." In other words, they primarily disqualify applicants based on how relevant a crime is to the honesty and safety required of a real estate agent.

Can You Get a Real Estate License with a Felony?

Can you still get a real estate license if you have a felony? The answer is: it depends. If your felony relates to the work or duties of being a real estate agent (such as financial fraud, grand theft, or forgery), the DRE may disqualify you.

Under AB 2138, the DRE generally cannot deny a license for a conviction that occurred more than 7 years ago, provided you have completed all sentencing requirements. This 7-year "washout" period does not apply to serious felonies like those requiring sex offender registration or certain financial crimes. This rule applies to both felonies and misdemeanors but does not pertain to minor infractions.

Note: The DRE may not deny you for an arrest with no conviction, but they can require a criminal matter to be resolved before issuing a license if the charge is substantially related to real estate duties.

Should You Still Apply to Get a Real Estate License if You Have a Felony?

You can still apply to get a real estate license even if you have a felony, but there is no guarantee you won’t be disqualified. The best course of action is to be transparent.

Don’t try to sweep anything under the rug. Under current laws, the DRE cannot deny you solely for failing to disclose a conviction that wouldn't have been a cause for denial anyway, but honesty is still the best policy. Because the DRE performs an extensive background check through the DOJ, they will see your record regardless of disclosure.

How Does a Real Estate License Background Check Work?

A background check is required for every applicant. You must complete a fingerprint Live Scan at a state-approved location, such as a police department or private business. You can find a list of approved Live Scan locations on the DRE website.

After your Live Scan, the Department of Justice (DOJ) informs the DRE of your past criminal convictions. The DOJ also keeps your fingerprints on file to notify the DRE if you are arrested or convicted in the future.

How Far Back Does a Real Estate Background Check Go?

While the background check can show an applicant's entire history, AB 2138 limits the DRE's ability to use older crimes against you. Generally, convictions older than 7 years cannot be used as the sole basis for denial unless they involve serious crimes. Additionally, the DRE cannot deny a license based on dismissed arrests, infractions, or juvenile adjudications.

What is a Real Estate Live Scan?

A Live Scan is an electronic scan of your fingerprints used for identification. It is the industry standard for background checks. Results usually post in 3-7 business days, but may take longer if prints are rejected or require manual review.

How to Fill out a Real Estate Live Scan Form

Let’s cover how you can fulfill the live scan part of your license application.

First, download the RE 237 form from the DRE website. Once completed, you should print 3 copies of this form.

Second, fill out the 3 forms as much as possible. Some sections of the form need the live scan service provider to fill out.

After you have filled out all 3 RE 237 forms, the live scan service provider has filled out their sections, and the fingerprint has been taken, you can mail the forms.

The fingerprint service provider will take one of your copies. You will hold onto one of the copies.

Then, you will mail your final copy to the DRE at the following address:

Department of Real Estate

P.O. Box 137002

Sacramento, CA 95813-7002

Attn: Fingerprint Desk

How Much Does a Real Estate Live Scan Cost?

The cost of a real estate live scan varies based on the service provider. Every provider will have 2 separate fees:

• A processing fee: $49
• A service fee: Charged by the provider for taking the prints; this usually fluctuates between $20 and $50

Typically, you should expect to pay a total of $70 to $100 depending on your location. You pay these fees directly to the Live Scan provider, not the DRE.

Final Thoughts on Your Real Estate License Background Check

The background check ensures the integrity of the California real estate industry. While a criminal history can be a hurdle, the law now provides more protection for rehabilitated individuals than ever before. If your application is denied, you have the right to appeal and present evidence of rehabilitation, such as stable employment or letters of recommendation, to prove you are fit for the profession.