Regulations of the Real Estate Commissioner    - https://www.dre.ca.gov/files/pdf/relaw/regs.pdf
CCR - California Code of Regulations -- Tittle 10 Chapter 6 Article 1
pags 1, 9-14 ( 235, 243-248)

BPC - 10131.01   view

Cal. Code Regs. Tit. 10, § 2725 - Broker Supervision  -  view

A responsible broker shall exercise reasonable supervision over the activities of their salespersons or broker associates acting in the capacity of a salesperson. Reasonable supervision includes, as appropriate, the establishment of policies, rules, procedures and systems to review, oversee, inspect and manage:

(a) Transactions requiring a real estate license.
(b) Documents which may have a material effect upon the rights or obligations of a party to the transaction.
(c) Filing, storage and maintenance of such documents.
(d) The handling of trust funds.
(e) Advertising of any service for which a license is required
(f) Familiarizing salespersons with the requirements of federal and state laws relating to the prohibition of discrimination.
(g) Regular and consistent reports of licensed activities of salespersons or broker associates acting in the capacity of a salesperson.

The form and extent of such policies, rules, procedures and systems shall take into consideration the number of salespersons or broker associates acting in the capacity of a salesperson retained and the number and location of branch offices.

A responsible broker shall establish a system for monitoring compliance with such policies, rules, procedures and systems. A responsible broker may use the services of associate brokers and salespersons to assist in administering the provisions of this section so long as the responsible broker does not relinquish overall responsibility for supervision of the acts of salespersons or broker associates acting in the capacity of a salesperson retained by the responsible broker.

Business and Professional Code 10159.2  - Corporate Brokers  view

10159.2.  (a) The officer designated by a corporate broker licensee pursuant to Section 10211 shall be responsible for the supervision and control of the activities conducted on behalf of the corporation by its officers and employees as necessary to secure full compliance with the provisions of this division, including the supervision of salespersons licensed to the corporation in the performance of acts for which a real estate license is required.

Business and Professional Code 10177  - Disciplinary Action for RE Brokers  view

The Commissioner may suspend or revoke for: 

b) entered into a plea of guilty or no contest to  , or been found guilty of or been convicted of a felony or a crime substantially related to the qualifications, functions or duties of a real estate licensee,. 

c) knowingly authorized, directed, connived at or aided in the publication advertisement or distribution or circulation of material false statement or representation concerning a ... business opportunity... 

d) (review 11000)

f) guilty via other division of the state regulators

g) demonstrated negligence or incompetence in performing an act for which the officer, director or perons is required to hold a license

h) As a broker, failed to exercise reasonable supervision over the activities of that licenses sales persons or as the officer designated by a corporate broker licensee, failed to exercise reasonable supervision and control of the activities of the corporation for which a real estate license is required

j) Engaged in any other conduct, whether of the same or of a different character than specified in this section, that constitutes fraud or dishonest dealing

o) Failure to disclose direct or indirect relationship --- "by any other person with whom the licensee has a special relationship"

p)  Article 6

q)   Chapter 2