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California: what an unlicensed TC can do

What an unlicensed transaction coordinator may do in California, what needs a license, and why the agent's review matters.

California unlicensed transaction coordinators: administrative tasks you can do under licensee direction, and activities that require a license

The short version

Unlicensed assistants work with the broker's knowledge and consent, under the broker's supervision.

You may (administrative)

  • Prepare and complete documents under the licensee's direction, if the licensee reviews or approves them before they go to a party
  • Mail, deliver and pick up documents, and obtain signatures (without discussing what the documents mean)
  • Schedule appointments, and order inspections, reports and services as the licensee directs
  • Tell parties and service providers when reports or services will be delivered or completed
  • Review transaction documents for completeness, with the final call made by the licensee
  • Accept and account for trust funds, and give a receipt

Needs a license

  • Represent buyers or sellers as their agent
  • Negotiate price, repairs, credits or extensions
  • Advise clients about terms, or about removing contingencies
  • Choose contract terms or draft provisions on your own
  • Explain a document's meaning, relevance or legal effect to a client
  • Show property to prospective buyers
The California line: "negotiation" is read broadlyThe Department of Real Estate warns that "it does not take very much to go from unlicensed to licensed activity." California courts have read "negotiation" to include activity that helps negotiate or close a deal, not just bargaining over the price. Preparing documents is fine; deciding what they say is not.

A practical example

You can:
"Your signature is missing on page 3."
Refer to the agent:
"Should I sign this contingency removal?"

The agent reviews before it goes out

You can fill out a purchase agreement or addendum with the terms the agent decided, but the licensee must review or approve it before it's presented or delivered to a client or the other side.

These are guidelines, not law

The DRE's guidelines describe what generally doesn't need a license (Business and Professions Code 10131 and 10133.2). Your broker's own rules may be stricter, and the broker must supervise what you do.

How Closima handles it

You can fill out contract forms in Closima. Before you send one for signature, Send to agent for approval gives your agent a link to check the filled form and approve it or ask for changes, and the file records who approved it and when. If your agent signs off another way, you can still send it, and the file notes that.

Source: California Department of Real Estate, Guidelines for Unlicensed Assistants (Last revised 1/5/2018).

General information, not legal advice. Rules change, and your broker's policies may be stricter: confirm your duties with your supervising broker and your state's real estate regulator.

See also: California contract deadlines · How to become a transaction coordinator

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