The California Department of Real Estate (DRE) has reached a settlement with Lance McHarg, former president of Real Estate Trainers, Inc. (RETI), following an investigation into exam misconduct.
According to the DRE, McHarg repeatedly took the state’s real estate license exam without passing and used knowledge gained from these attempts to include actual exam content in educational materials offered by RETI. The DRE determined that this action was intended to benefit students preparing for the licensing exam.
“The subversion of real estate license examination content is something DRE takes very seriously,” said Assistant Commissioner Jeff Oboyski, who oversees the Licensing Division at DRE. “Ensuring that those who attempt to compromise the integrity of our real estate license exams are held accountable for their actions underscores DRE’s commitment to consumer protection.”
As part of the settlement, McHarg is barred for three years from applying for or participating in any capacity in California real estate license examinations or holding a real estate license. He is also prohibited from employment, management, instruction, or ownership roles in any business offering pre-license or continuing education courses related to real estate licensing during this period.
Additionally, RETI and its officers, directors, instructors, and affiliates face similar restrictions for three years. They are not allowed to apply for or participate in licensing exams or offer any preparation courses using questions copied from DRE exams. McHarg must also be removed from all positions within RETI.
The settlement requires McHarg and RETI to pay $60,000 in penalties and costs associated with the investigation and legal proceedings.
The DRE’s Education and Research section reviews and approves all continuing education and statutory/pre-license qualification courses provided by private organizations. Currently, there are 63 providers offering 525 approved continuing education courses and 163 providers offering 859 statutory/pre-license courses across California.
The Department of Real Estate regulates approximately 434,000 licensees statewide and enforces laws related to real estate transactions. Its mission is focused on public protection through licensure standards, regulation, education requirements, and enforcement measures.
