A felony does not automatically or permanently bar a California Department of Real Estate (DRE) salesperson or broker license. State law bars denial based on character alone and sets specific conviction-related standards. For an initial application, the DRE must assess whether the offense is substantially related to license duties and whether a time limit or exception applies. Rehabilitation, record relief, incarceration dates and what the current application actually asks can also matter. (Business and Professions Code § 475; § 480)
A person who already holds a license faces a different set of rules. In particular, a licensee generally must report a filed felony charge or a felony or misdemeanor conviction to the DRE in writing within 30 days. (Business and Professions Code § 10186.2)
“Realtor” is commonly used to mean a real estate professional, but it is a membership term. The California license at issue is issued by the DRE.
If you are applying for a first license
The DRE cannot deny an initial license just because a felony appears in your past. For a conviction-based denial, California generally requires both a substantial relationship to the license’s duties and a conviction within seven years before the application—or current incarceration or release from incarceration within the preceding seven years. The seven-year limit does not cover a serious felony listed in Penal Code § 1192.7, an offense requiring registration under Penal Code § 290(d)(2) or (3), or a financial crime currently classified as a felony that is directly and adversely related to real estate fiduciary duties under the DRE regulation. (§ 480(a)(1); 10 CCR § 2910.5.)
“Substantially related” is a case-specific assessment, not a rule that every felony counts. The DRE’s regulation identifies possible categories such as fraud, forged instruments, certain sexual offenses, repeated willful disregard of the law, and certain alcohol- or drug-related convictions. It also requires consideration of the offense’s gravity, how much time has passed, and the duties of the license. (10 CCR § 2910)
The statute also identifies circumstances that can prevent denial based on a conviction or its underlying conduct, including a certificate of rehabilitation, pardon or clemency, qualifying expungement or dismissal, or a showing of rehabilitation under § 482. These protections are limited to the conviction-related ground described by law; they do not erase a record for every purpose or guarantee a license on every other requirement. (Business and Professions Code § 480(b)–(e); § 482)
Section 480(c) protects convictions dismissed under Penal Code § 1203.4, § 1203.4a, § 1203.41, § 1203.42 or § 1203.425, or a comparable dismissal or expungement. For the first four listed dismissal provisions, it also requires the applicant to provide proof if the Department of Justice report does not show the dismissal. Bring the actual relief order so counsel can identify the provision and whether that proof requirement applies. (Business and Professions Code § 480(c))
A useful first review is to gather the conviction and custody dates, the exact offense and disposition, any later court order, and information about restitution, supervision, education or changed conduct. The DRE regulation lists rehabilitation factors; it does not create one universal waiting period for all applicants. (10 CCR § 2911)
Applicant and current licensee: different questions
| Your situation | What to check |
|---|---|
| Applying for an initial license | The conviction, date, incarceration history, substantial relationship, any exception to the seven-year limit, available relief and rehabilitation evidence. |
| Already licensed | Whether a reportable event occurred, the 30-day reporting deadline, the offense’s relationship to license duties and any DRE notice or proceeding. |
For initial applicants, the current Business and Professions Code limits which licensing boards may require an applicant to disclose conviction history. The DRE’s June 2024 combined salesperson exam/license form asks about sex-offender registration and specified licensing and administrative matters, and requires fingerprinting; it does not include a general question asking applicants to list convictions. A background check can still return information for DRE review. Answer the actual current application accurately, and get advice before responding to a separate DRE request or an individualized form. (§ 480(f); DRE form RE 435)
If you already have a DRE license
The 30-day written-reporting rule applies to a filed complaint, information or indictment charging a felony; a felony or misdemeanor conviction, including a verdict or guilty or no-contest plea; and specified other licensing discipline. An arrest by itself, without a filed felony charging document, is not the felony-charge trigger in this statute. Missing a required report can itself be grounds for discipline. The DRE’s reporting form describes the required information. (§ 10186.2; DRE form RE 238)
Reporting and discipline are separate questions. The DRE may discipline a licensee for a felony or substantially related crime after the appeal period expires or the conviction is affirmed. The statute permits discipline on that basis even if a later dismissal is obtained under Penal Code § 1203.4. It separately allows suspension following a guilty plea before final judgment, with a process to rescind that suspension if the plea is withdrawn. An accusation is not itself a conviction, and discipline is not automatic in every case. (Business and Professions Code § 10177(b))
Before entering a plea, filing an application, or answering a DRE notice, line up the records that control your situation:
- The charging document, plea or verdict, judgment, and exact offense.
- Conviction, custody, release, probation and parole dates.
- Any dismissal, certificate of rehabilitation, pardon, clemency or other court order.
- Whether you are applying for your first license or already hold one, and any DRE forms or notices you received.
- The proposed plea terms and any DRE reporting or response deadline.
A dismissal that helps with an initial application does not necessarily protect an existing license from discipline. A plea can affect both the criminal case and licensing analysis, so review the actual records and timing before acting. For related California record-relief information, see our expungement overview.
The Law Offices of David S. Chesley can review the criminal case and its possible licensing consequences before a plea or response. Call (800) 755-5174.