Hanson Law Firm

Call Today 877-545-6738

August 2015 Archives

Top DRE Audit #10: Written Disclosure Statement

Another often-cited violation is Section 10240 of the code which requires brokers to provide a borrower with a mortgage loan disclosure statement within three business days after receipt of a completed loan application or before the borrower becomes obligated on the note, whichever is earlier. Real estate brokers often fail to provide the Mortgage Loan Disclosure Statement (Borrower) or, in a federally regulated residential mortgage loan transaction, fail to comply with Section 10240(c). Other brokers fail to maintain completed copies for their files.

Top DRE Audit #9: Commingling

A broker shall not commingle with his or her own money or property the money or property of others which he or she receives and holds. Common causes of this violation are the deposit of trust funds received into the broker's general business account or maintenance of over $200 in broker funds in a trust account holding trust funds.

Hanson Law Firm | 200 Gate Five Road, Suite 206  | Sausalito, CA 94965 | Phone: 877-545-6738   | Map & Directions