California DRE Defense Attorney

DRE hearings, investigations, licensing issues and audits

WHY AM I GETTING AUDITED?  So you get a letter from the California Department of Real Estate (DRE) informing you that they are auditing or investigating you. You wonder which client complained and why you are subject to the audit. Then you take a look at all the documents they are requesting and you form a theory as to why they want to investigate your books, practices, and operation. You think to yourself, "should I hire a real estate lawyer to represent me in this matter" or "maybe I can just represent myself, give the DRE auditor the documents they are asking for and hope it all works out okay." After all, you have done nothing wrong or fraudulent. This is the common scenario we see. Typical Documents the DRE auditor may request as part of a DRE audit or investigation (this is not an exclusive or exhaustive list - there may be other requirements) (1) Copy of all salesperson agreements and licenses, and copy of broker licenses (2) Copy of your corporate records (Articles of Incorporation, corporate information, Secretary of State information etc.), DBA's (3) Bank statements for all corporate bank accounts and trust accounts used in connection with licensed activity (4) Reconciliation statements for trust accounts (including separate records for each beneficiary) (5) Trust fund records of receipts and disbursements (6) Deposit Records and cancelled checks for trust accounts used in licensed activity (7) Trust account and general bank account signature cards (8) … [Read More...]