Reseda, CA asked in Contracts, Real Estate Law and Gov & Administrative Law for California

Q: My client is a realtor in California

Her Company name is "ABD realty Inc" (name changed)

Is that name legal --allowed ?

1 Lawyer Answer
James L. Arrasmith
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  • Sacramento, CA
  • Licensed in California

A: In California, the use of the word "realty" in a company name is regulated by the California Department of Real Estate (DRE). According to the DRE, the use of the word "realty" is restricted to licensed real estate brokers or corporations that have a licensed real estate broker serving as an officer of the corporation.

For "ABD Realty Inc." to be a legal and allowed name in California, the following conditions must be met:

1. The company must be a licensed real estate brokerage.

2. The company must have a licensed real estate broker as an officer of the corporation.

3. The company must have obtained approval from the DRE to use the word "realty" in its name.

If these conditions are not met, the use of the word "realty" in the company name may be considered a violation of California real estate law and could result in disciplinary action by the DRE.

It is essential for your client to ensure that their company is properly licensed and in compliance with all relevant laws and regulations before using the name "ABD Realty Inc." If there are any doubts, it is advisable to consult with a licensed California real estate attorney for guidance.

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