The DRE takes regulatory compliance very seriously and audits realtors for two reasons: either in response to complaints from a customer (investigative audits), or as a result of random selection (routine audits).
In either instance, the process can be stressful and time-consuming, and it’s common for an audit to reveal violations. The DRE Auditor will typically be someone with an accounting background and an eye for detail. They’ll likely concentrate largely on your trust fund handling, zooming in on handling of trust funds, requisite records, proper accounting, trust fund reconciliations, and broker supervision over trust fund activities; but they’ll also cast a critical eye over your entire operation and all your licensed activities.
In some cases, the individual in charge of inspection will be a DRE Special Investigator. These investigations are known to the DRE as a broker office survey, and they involve an often unannounced and unscheduled visit to a broker’s place of business, paying particular attention to licensing compliance, trust account compliance, supervision, record-keeping and required disclosure.
DRE broker office surveys and audits are fundamentally adversarial: if violations are discovered, the next step of the process is for the DRE to file an accusation. The brokerage and agent then go through an administrative trial, with license revocation a potential outcome.
If you’re facing a DRE audit, having an experienced real estate attorney by your side can help protect your interests throughout the process and defend you against any accusations that may follow.
Protect Your Brokerage and Your License
A California Department of Real Estate audit can have lasting consequences if issues are uncovered or allegations are made. Whether you’ve received notice of an upcoming audit, are currently working with DRE investigators, or need legal guidance after an audit has concluded, attorney Mary Work is prepared to help. Call (310) 416-9800 today to discuss your situation and receive experienced representation focused on protecting your brokerage, your professional reputation, and your real estate license.
