Restricted Licenses in California: Processes and Renewals

The real estate industry in California, like many US states, is subject to detailed regulations that define how professionals can obtain, use and renew their licenses. One of the lesser known, but crucial aspects, is restricted licenses and their renewal process.

Defining Restricted Licenses

A restricted license is one that is issued with certain limitations. These limitations may refer to the duration of the license, the responsible broker or certain conditions that must be met. The main reason behind the issuance of a restricted license is usually some regulatory concern or prior sanction that requires additional monitoring of the licensee.

Renewal of Restricted Licenses

A crucial point to understand is that, contrary to popular belief, restricted licenses cannot be renewed. According to the Business and Professions Code (BPC 10156.6-.7):

  1. There is no Right to Renew: The holder of a restricted license does not have the right to renew it.
  2. Lifting of Restrictions: If the holder meets any condition of the restriction, it can be lifted, and an unrestricted license could be issued.
  3. Suspension or Non-Renewal: If the stipulated conditions are not met, the restricted license could be suspended. It is important to note that it cannot be “indefinitely extended” or renewed.

What to do if you have a Restricted License?

For those professionals who hold a restricted license, it is essential to understand that you cannot simply renew it once its expiration date arrives. Instead, they will need to work to comply with the conditions of their restriction, in the hopes that the restricted license will convert to a regular license.


The regulations surrounding restricted licenses in California are clear. While this type of license allows professionals to continue working under certain conditions, it is vital to be informed about the limitations and restrictions associated with them. Renewal is not an option, but with effort and compliance, there are paths towards regularization and continuation in the real estate sector.

Legal and Tax Disclaimer

Please be advised that the content presented in this blog is for informational purposes only and should not be construed as legal or tax advice. The articles and information provided here are written from the perspective of a real estate agent affiliated with Keller Williams, and do not represent legal or tax counsel.

As the author, I am a licensed real estate professional under Keller Williams, holding Brokerage DRE License Number: #02197031. However, it is important to note that my expertise is in the field of real estate, and not in legal or tax matters. The insights and opinions shared on this blog are based on my experiences and knowledge in the real estate industry and should be treated as general guidance rather than definitive legal or tax advice.

For specific legal or tax concerns relating to any real estate transactions or investments, readers are strongly encouraged to consult with a qualified attorney or tax advisor who can provide tailored advice based on your individual circumstances and the latest legal and regulatory requirements.

The information on this blog is provided "as is" without warranty of any kind, and I, along with Keller Williams and its affiliates, disclaim all liability for any loss, damage, or misunderstanding arising from reliance on the information contained herein.

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