I have a agent, she is a licenced broker, that I would like to hire, she is currently at a loan agency and wishes to remain with them, while selling homes under my licence... I dont think she can do this... I read all my books... cant find that is a violation... but cant find that its allowed either, she has worked for some of the larger companys and some of them have allowed her to sell homes under her licence... and again I dont think this is allowed either, its California DRE laws, they are strict, and I dont need any more problems. does anyone have anything in writing that would suggest that this is either legal or illegal?

You mean dual, not duel.

I once called the California DRE legal department with a similar question and was told that in certain situations someone with a CA broker's license can simultaneously do sales for a company that doesn't do loans while doing loans for a company that doesn't do sales. It is not a practice they recommend, but it is not illegal. Call the California DRE legal department to discuss the matter in more detail.

The designated brokers for the loan entity and sales entity should be made aware of the dual activity and give their consent as there could be some additional risk exposure. As you are the broker on the sales side, you'd want to review your e&o policy to see if it covers you for the activities of the loan person.

thank you, so with company doese the original licence hang with? she believes as broker even acting as an agent, she keeps the original and sends the copies to her broker. Can they be copies? At this point I am going to turn her down, but would like to know for the future.

It is allowed in Georgia. My business partner owns a Mortgage company and I am technically one of his employees. We have an affiliated business disclosure that explains this. We have every client sign one.

never mind...

Before turning her down why don't you just Pick up the Phone and call the CA DRE who I bet would be more than happy to answer your questions. That is one of the reasons they have phones.

Her original RE license would hang with you as you would be her broker. She could hang a copy behind her desk at the Loan agency if she desired.

You are just going to turn her down because you don't want more trouble with DRE. Have you had so many problems with DRE that you are not even willing to call them and ask this simple question?

No Paul, no troubles, but we do have a growing loan department, and I called My E&O and they didn't seem positive. I have no need to open myself up to problems. I have a full plate, it wasn't until halfway through the hiring process that she even mentioned it. This is not to say she is dishonest, she believed that its none of my concern. Paul one other question, in the past I have always held the original DRE Licence, In a audit will a copy suffice?

Paul I just noticed that your not In CA. getting an answer...correct answer out of the DRE, is nearly impossible, and extreamly time consuming. I do have a CARR hot-line for legal questions and a lawyer on retainer. Both said it MIGHT be permissible but if they were me... dont do it...As for the licence, its clearly states to ave the original licence, but I know brokers that just keep a copy, does anyone know how the DRE views having a copy instead of the original during a audit?

E&O providers are never going to give you a straight answer unless the issue is Black & White.

You did not mention that you had your own loan company in the first post. In that case I would definately pass on her under these conditions.

I cannot speak for CA rules but in IL the brokerage office holds the original license and a copy would not satisfy an audit.

I believe this may be illegal, but if the agent wants to duel the typical procedure is for both parties to begin in opposing directions, take ten paces, then turn and shoot.

lol; flynnism #43

In California, if a loan broker employs an associate broker, the loan broker doesn't need the original license of the associate broker. The loan broker need only know when the associate broker's license expires.

This is posted at the CA DRE website:

http://www.dre.ca.gov/re7.htm

Mortgage Loan Broker Compliance Evaluation Manual

(RE 7 new 5/06)

State of California
Department of Real Estate

SECTION 1 – General Business Practices

1. Are the broker's salespersons properly licensed?

Correct Procedure:

All persons performing activities requiring a real estate license (soliciting or negotiating loans secured by real property or a business opportunity) for compensation must hold a valid real estate license.

The broker should have some procedure in place to monitor the expiration dates of the licenses of his/her salespersons. . . . The broker must also retain possession of the licenses of his/her salespersons while in the broker's employ. If the broker employs other broker licensees as broker-associates, the broker need not retain possession of the licenses, however, he/she should monitor the expiration dates.

Thank you

I would also suggest calling the legal hotline for CAR. I have called to ask them several legal questions and they have gotten back to me within 24 hours.

Just make sure you give them your cell phone or murphys law will take over and they will call your office phone just as you step into the bathroom.

I see that you can also do them totally online now. Here is the link:

http://www.car.org/index.php?id=NTk2

On a side note, I do believe I have actually encountered people who are doing this - so I think you will find you can make it work. (I think I met mortgage guy at Aptos Mortgage who was also working as agent for the local Coldwell Banker)

R