The California Department of Real Estate (DRE) has reached a settlement with Lance McHarg and Real Estate Trainers, Inc. (RETI), following an investigation into misconduct related to the state’s real estate license examination.
According to the DRE, McHarg, former president of RETI, repeatedly took the real estate license exam without passing and used information from these attempts to develop educational materials for students preparing for the same exam. The department concluded that this action compromised the integrity of its licensing process.
“The subversion of real estate license examination content is something DRE takes very seriously,” said Assistant Commissioner Jeff Oboyski, who oversees DRE’s Licensing Division. “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 a California real estate license examination or holding a real estate license. He is also prohibited from working in any role within a real estate business or an organization offering pre-license or continuing education courses.
In addition, RETI and all associated personnel—including officers, directors, instructors, and affiliates—are subject to similar restrictions for three years. They cannot participate in licensing examinations or offer any course using questions taken from official DRE exams. McHarg must also be removed from all positions at RETI.
McHarg and RETI are required to pay $60,000 in penalties and costs covering damages and investigative expenses incurred by the DRE.
The Education and Research section of DRE reviews and approves all continuing education and statutory/pre-license qualification courses offered by private providers. There are currently 63 approved providers offering 525 continuing education courses and 163 providers offering 859 statutory/pre-license courses statewide.
The Department regulates over 434,000 licensees under various state laws governing real estate practice. Its mission includes protecting consumers through licensure oversight, regulation enforcement, education standards, and disciplinary actions when necessary.
