Tips for handling DRE and BRE real estate audits
This blog discusses some general questions that might come up if you are facing a Department of Real Estate (“DRE”) audit, or California Bureau of Real Estate (“BRE”) broker-escrow audit. This is not an exclusive list and other questions may be asked. These questions provide some helpful tips of the types of things every broker should prepare for. If you need representation, please fill out the contact form below.
Potential questions the broker may be asked
1. Does your company handle broker escrows?
2. if so, how many per year?
3. Who is the contact person for escrow?
4. Is the broker licensed by any other entity (ex. Department of Corporations, now the California Department of Business Oversight)?
5. How many years experience does the broker have in escrow?
6. Does the company maintain errors and omissions insurance (E&O)?
7. Does the broker have a fidelity bond?
8. Does the company do “virtual escrows”?
9. What is the name of the insurance bonding company?
10. What is the deductible on your insurance?
11. Are there separate owners for the escrow side of the business?
12. How many open escrows do you have?
13. Do you accept any type of trust funds?
14. How are the checks signed?
15. Who handles the escrow accounting?
16. Do you have a copy of escrow logs?
17. Who inputs the transactions into the computer?
18. What broker escrow software do you use
19. Do you work on any escrow transactions for deals other than your own (ex. a standalone escrow transaction)?
20. Have you ever received any complaints in regard to your broker escrow?
Contact a BRE license defense firm
These are a sample of the types of questions you may get. To retain our firm to help you in a broker escrow audit, contact us at (877) 276-5084 or fill out the contact form below. We have helped many agents, salespersons and real estate brokers, including property management brokers in handling BRE investigations, audits, subpoena response, desist & refrain and real estate accusations.
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