Stay Informed: DRE Highlights Common Real Estate Violations

The California Department of Real Estate (DRE) recently released a Consumer Alert outlining the most common enforcement violations and how to prevent them. These reminders are critical for REALTORS® to protect their clients, their businesses, and their licenses.

The DRE identified six key areas where violations most often occur:

• Trust Fund Handling & Record Keeping – Commingling funds or failing to reconcile accounts can lead to serious penalties.
• Failure to Supervise – Brokers must ensure proper oversight of all licensed and unlicensed activities.
• Unlicensed Activity – Only properly credentialed individuals may perform licensed real estate activities.
• Misrepresentation – Failing to disclose or providing inaccurate information puts both consumers and licenses at risk.
• Criminal Convictions – Licensees must report certain convictions or disciplinary actions within 30 days.
• Advertising & Team Names – Ads must include proper disclosures, license numbers, and broker association.

What this means for REALTORS®:
Maintaining compliance requires diligence in record-keeping, transparency in communications, strong supervision practices, and careful attention to advertising rules.

PSAR encourages all members to read the full DRE Consumer Alert to stay current and avoid costly mistakes.

Read the full alert here: DRE Consumer Alert – August 26, 2025