DRE Updates

As you may know, the Department of Real Estate will fall under the Department of Consumer Affairs starting July 1st. While there are changes, many things are expected to remain the same including the same Business and Professions Codes and Regulations. There are couple of issues which do warrant your attention. These include:

  • A new commissioner, Wayne Bell was just appointed.
  • The DRE will no longer be known as the Department of Real Estate, but will become the Bureau of Real Estate.  The Commissioner has recently advised that agents and brokers do not immediately need to change their business cards, email addresses, correspondence, etc. from DRE to BRE.  However, as time progresses, the industry should start using the new initials BRE to be accurate.
  • There is no certainty, but there is a sense that more attention will be focused on consumer complaints and issues.
  • There also seems to be a trend to actively scrutinize property management activities.
  • In addition, financial records are being highly scrutinized.
  • As mentioned, there is an active program to perform on-sight audits which has become more prevalent.

Advisory Audits are available through our law firms. Among other things they will cover:

  • Review random transaction files
  • Review trust logs
  • Review ICA and related agreements between Brokers and Agents
  • Review Management Agreements
  • Review Document Retention Policies
  • Review Regulations such as Do Not Call, Fair Housing, Sexual Harassment Trainings, etc.
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