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California real estate brokers, salespersons, mortgage loan brokers, and DRE-licensed property managers operate under continuous regulatory oversight. An effective method of reducing the likelihood of license discipline is not defending against an enforcement action after the fact, but establishing compliance practices designed to prevent regulatory violations before the Department of Real Estate opens an inquiry. Law Offices of Alan Abergel, P.C. ("LOAA") is a California DRE regulatory compliance attorney practice focused on assisting brokers, broker-officers, salespersons, and mortgage loan brokers.
Proactive compliance concerns the policies, procedures, and internal reviews that support a brokerage license in good standing. Representation in an active DRE investigation, Citation, Desist and Refrain Order, Statement of Issues, or Accusation is addressed separately under DRE License Defense services.
Advertising violations remain among the more frequent bases for DRE citation. LOAA provides advice to its DRE clients about advertising and marketing laws and regulations compliance.
Trust fund violations are a recurring basis for DRE enforcement actions. LOAA advises brokers and property managers on trust fund reconciliation and the maintenance of trust account records consistent with DRE requirements.
DRE-licensed mortgage loan brokers are subject to obligations beyond general brokerage supervision, including disclosure and recordkeeping requirements specific to loan transactions. Relevant considerations include disclosure statements required under the Mortgage Loan Broker Law, retention of loan file documentation, threshold mortgage loan broker reporting obligations applicable to brokerages meeting statutory reporting triggers, and trust fund handling in connection with loan servicing and impound accounts. LOAA advises DRE-licensed mortgage brokers on compliance with these requirements, including their coordination with applicable state and federal consumer and commercial lending disclosure laws.
Recordkeeping and Record Retention
The Real Estate Law imposes retention periods for transaction files, trust fund records, and related documentation. Considerations in this area include the completeness of transaction files, including contracts, disclosures, agency confirmations, and closing statements; retention of trust fund records and reconciliations; maintenance of property management records and owner statements; and retention of advertising and supervision records. LOAA advises brokerages on recordkeeping practices consistent with DRE retention and production requirements.
DRE Examination Preparation and Compliance Review
Brokerages subject to periodic DRE examination, or seeking assurance regarding the sufficiency of their existing systems, may benefit from an internal review of trust account reconciliation, supervision documentation, advertising records, and transaction files conducted apart from a Department examination. Where deficiencies are identified through such a review, documentation of subsequent corrective measures may be relevant to how a licensee's compliance posture is later regarded. LOAA advises brokerages in connection with DRE examination preparation and internal compliance review.
Matters relevant to a brokerage's readiness for a DRE examination generally include whether written office policies and procedures are current and reflect actual office practice; whether supervision of salespersons is documented, including file review, advertising approval, and training records; whether trust account records reconcile against the trust liability ledger and individual beneficiary records, with reconciliations retained for the applicable period; whether property management trust accounts are reconciled separately from general brokerage trust funds; whether active advertising displays required license identification; whether applicable threshold mortgage loan broker reports have been filed; whether transaction and trust records are maintained in a manner permitting timely production; and whether findings from any prior review or examination have been documented as corrected.
LOAA provides legal opinions to individuals and businesses evaluating whether a given activity requires a DRE or other California financial regulatory license, and under which classification. Such opinions are based on an examination of the services provided, the compensation structure, the relationship between the parties, and applicable statutory definitions and exemptions, and may serve as a documented basis for the client's compliance position.
Law Offices of Alan Abergel, P.C. advises California brokers, salespersons, and mortgage loan brokers on regulatory compliance under the Real Estate Law an other applicable California and federal law. Contact LOAA to discuss your legal services needs concerning your brokerage.
Disclaimer: The information on this page is provided for general informational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading this content. Every legal matter is unique, and you should consult directly with a qualified attorney regarding your specific circumstances.
"I engaged Alan to help me through the complexities of obtaining my Lenders License. He was very knowledgeable about the process and provided me with a high level of service.I worked quickly getting him all the information needed and he worked at my pace. He was responsive to e-mails and questions and followed up with the DFPI to make sure everything was filed correctly.I had read online that this process could take as long as 6 months however Alan completed the assignment in less than 3 I will be retaining his services in the future to ensure my company remains in compliance."
-Petroleum Realty Group Inc.
"I hired Alan to represent me as a mortgage broker before the California Department of Real Estate. I couldn't be more pleased with Alan's services from start to finish. Alan was clear and concise. Alan's communication throughout the process was professional. I received the results I hoped for. Thank you Alan. I'll definitely recommend you to ALL and use your services again in the future shall I need anything!"
-Anonymous
"Very helpful in assisting in obtaining an OCCC Texas Motor Vehicle Sales Finance License. Very knowledgeable in answering all questions the OCCC asked for on their questionnaire. Highly recommended and would re-hire for any future assistance regarding motor vehicle and finance business. God Bless!"
-Raul
