Regulatory Compliance Services

california real estate mortgage compliance service

California Real Estate & Mortgage Compliance Service

A top to bottom strategic examination of your real estate brokerage operations is the first line of defense against specious complaints, unscrupulous competitors, employee dishonesty and other situations that can catch a brokerage off guard. Preventive measures are the first line of defense against regulatory actions.

New Ventures

If you are planning to open or launch a new real estate brokerage venture that will do business in California, it is essential that you understand the challenges faced by the core business – operating a forward-thinking real estate brokerage that complies with the laws and regulations that apply to real estate brokerage activities in this state. Operational compliance must be built into every new real estate brokerage business plan and mission statement.

Existing Brokerages

It is never too late to strengthen brokerage policies and procedures. A review designed for your particular business model can test for regulatory compliance and assist you in developing new policies and procedures to achieve regulatory compliance and robust broker supervision of brokerage activities.

Types of Examinations

I. Trust Fund Handling Activities

This type of review is structured to identify areas of non-compliance and prepare a brokerage for audit by the California Department of Real Estate (DRE). If you have not had your operation reviewed within the past 12 months, you should consider undergoing a compliance review to make sure that your business operates in accordance with DRE requirements. Broker escrow activity and property management services because they involve the handling of trust funds, are areas which require robust compliance procedures. Trust Fund handling activities are the subject of close scrutiny by the DRE.

II. Operational compliance

Is your brokerage in compliance with the wide range of regulatory requirements that apply to real estate brokerages operating in California?

An examination of brokerage policies and procedures can determine whether operational revisions are needed. Beyond the DRE broker supervision requirements, there are additional issues to consider that pertain to brokerage compliance that fall outside of the jurisdiction of the DRE.

Real Estate Brokerages are not only answerable to the DRE, but there are also other government agencies with jurisdiction over issues that Brokerages face on a daily basis. Brokerages must comply with state and federal laws against unlawful discrimination in employment, housing, businesses, wages and workplace conditions, misclassification of employment status among other areas of law.  Brokerages often leave compliance in these areas in the hands of affiliate licensees or unlicensed support staff members without understanding that such responsibility is often nondelegable. For these reasons, the Brokerage must be proactive in establishing a compliant framework for the business operation.

Property Management Compliance

Please see our page on property management compliance here.

To schedule an introductory call regarding Regulatory Compliance Services, call (310) 416-9800.