The California Bureau of Real Estate (CalBRE) periodically conducts financial compliance audits of real estate brokerages. These audits will focus on licensing, trust accounts, supervision, required disclosures and record keeping. The BRE has set a goal of auditing EVERY management company in the next four years. Are you ready?
We have compiled some information that can help you determine what they are looking for and what you can do. *Note effective July 2018, the BRE will be switching back to the DRE (Department of Real Estate).
This checklist is designed to assist you in conducting a self-evaluation of your residential real estate business activities. The checklist covers the most common violations found during CalBRE broker office surveys. In addition, the Broker Compliance Evaluation Manual (available on CalBRE Web site under "Publications") may be used as a reference guide when completing this checklist.
The purpose of this article is to call your attention to these common deficiencies and to provide you with procedures that you can follow to ensure compliance with these laws and regulations.
This article discusses general information and requirements of Trust Fund accounts, including accounting and record keeping. It also discusses the audit process.
The following links provide additional information on property management in California and recent updates from the BRE, including their seasonal bulletins from the Commissioner.
The chart below is an excerpt from the Fall 2017 Real Estate Bulletin and summarizes audit activity for the 2016-2017 fiscal year.