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Sheetz v. Edmonds
Citations: 201 Cal. App. 3d 1432; 247 Cal. Rptr. 776; 1988 Cal. App. LEXIS 514Docket: B029449
Court: California Court of Appeal; May 13, 1988; California; State Appellate Court
Rose Marie Sheetz appealed a trial court judgment denying her petition for a writ of mandamus, arguing that a power of attorney exempted her from the licensing requirements of California's Real Estate Law. From 1983 to 1986, Sheetz managed properties owned by John and Miriam Lein without a real estate license, as the Leins had previously been dissatisfied with licensed brokers. Although the Leins granted Sheetz a power of attorney in 1986, allowing her to perform specific management duties, an administrative law judge found that Sheetz was effectively acting as a real estate broker without a license and had used the power of attorney to evade licensing requirements. The court reaffirmed that acting as a real estate broker requires a license, and the exemption for individuals with a power of attorney does not apply if it is used to circumvent licensing laws. The court cited the California Supreme Court's interpretation, which clarified that the power of attorney must provide written authority to act on behalf of the principal in completing transactions, not merely in negotiating them. Therefore, the court upheld the denial of Sheetz's petition, confirming the validity of licensing requirements in real estate transactions. The Attorney General clarified that the power of attorney exemption was not designed to benefit individuals engaged in real estate transactions. The exemption statute could be interpreted to allow anyone holding a power of attorney to operate without a real estate license; however, this interpretation is incorrect. The exemption is intended for rare situations where a property owner must appoint someone to act on their behalf due to personal necessity. Allowing broader use of this exemption would undermine the licensing requirements essential for regulating real estate. Evidence indicates that Sheetz operated as a real estate agent without a license for four years, performing tasks typically managed by licensed brokers. Her friendship with the Leins or their need for a property manager does not negate the necessity for her to be licensed. The satisfaction of the Leins with her services is irrelevant to her legal standing. The Real Estate Commissioner rightly disregarded Sheetz's reference to a separate administrative proceeding regarding her property management, as it was not part of the administrative record. Additionally, the consent of the Leins does not absolve Sheetz of her violations of the Real Estate Law. Therefore, the judgment against her is upheld.