Legal Question in Real Estate Law in California

First, I am not an expert in DRE licensing. The information is more practical than anything else. There are attorneys who's practice emphasis is on DRE license defense and you will almost certainly have to reach out to someone like that and pay for advice to get a solid answer. I have been a real estate broker myself for 12 years, so I have some experience with license issues.

First, you will have to start your license application over from the beginning. The test results and application are now six years old, so you must start from scratch. Next, answer that particular question correctly - you were convicted of a Felony, but provide the backup that it was reduced to a Misdemeanor. Finally, with your application, submit a letter of explanation of what transpired with your first application. It is very likely that the new application could be rejected based upon the misrepresentation in the first application, but upon your denial, there is (as I recall) a procedure for appealing the Commissioner's decision. Follow that procedure and explain that it was an innocent mistake, and not an effort to hide the conviction. Unfortunately, you cannot appeal the 2004 denial as it has been too long - you will have to start over, be denied and then appeal the denial. Good luck.

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Having 'perjured' yourself in direct violation of the specific instructions on your RE license application that told you to disclose any convictions and expungements, you will have great trouble turning this around. You will need to contact the DRE official listed on your denial letter and start a process where you try to explain why you did this, blaming ignorance of the law I suppose. Your perjury might be explainable, and set aside by DRE, it happens sometimes, thus getting you to the point where you have to discuss and deal with the felony. But, the felony may bar you from licensing, depending upon what it was for. If it was for money crimes, embezzlement, robbery, etc., you can likely forget ever being licensed. Talk to DRE, it is up to them to decide.