Handling of Dept of RE Investigations
When the California Department of Real Estate (DRE) initiates an investigation, many licensees view it as an informal process with little consequence. Investigators may request documents, seek written responses, or schedule an interview, and it is common for brokers and agents to assume that the matter will close quickly if they simply cooperate.
This perception is misleading. A DRE investigation is not a routine check; it is the entry point into a process that can lead to formal disciplinary action. Any statement provided, whether written or oral, and any document submitted may later be used to build a case against the licensee. What seems like a straightforward effort to “clear things up” can inadvertently create the foundation for an accusation.
Practical Tips for Brokers and Agents
Do not assume informality. Treat every DRE contact as the beginning of a potential enforcement action.
Do not overexplain. Provide only what is necessary and avoid casual statements that may be misinterpreted.
Meet deadlines, but carefully. Never rush to submit responses without legal review.
Keep records organized. Accurate, complete files are critical for an effective defense.
Seek counsel early. Involving an attorney at the outset provides the best chance to close the matter quickly and quietly.
The Risks of Going It Alone
Because the process initially feels administrative, many licensees choose to respond without legal representation. This decision carries significant risks:
Unintended admissions. Even well-intentioned explanations can be misinterpreted as acknowledgments of wrongdoing.
Overproduction of documents. Providing more than is required may expose unrelated issues.
Missed defenses. Without counsel, licensees may fail to identify legal or factual defenses that could close the investigation at an early stage.
Compounding liability. Statements made to the DRE can be used not only in disciplinary proceedings but also in civil litigation or insurance disputes.
The Role of Counsel in a DRE Investigation
Engaging an attorney at the outset of the investigation changes the trajectory of the matter. Counsel can:
Serve as the point of contact with investigators, ensuring communications are accurate and consistent.
Review and respond to document requests strategically, limiting the potential for misinterpretation.
Anticipate the direction of the investigation and proactively address concerns before they escalate.
Preserve defenses and frame responses in a way that minimizes risk.
Work toward early closure of the investigation, avoiding the formal disciplinary process altogether.
The best outcome in a DRE matter is not prevailing at a disciplinary hearing — it is never reaching that stage. With proper handling, many investigations can be closed before accusations are filed. Early legal involvement provides the greatest opportunity to secure this result.
Department of Real Estate investigations should never be viewed as informal or inconsequential. They are the gateway to disciplinary proceedings that can affect a licensee’s livelihood and reputation. Brokers and agents who receive notice of an investigation should treat the matter with the same seriousness as a lawsuit and seek counsel experienced in DRE matters to guide them through the process from beginning to end.
At Blake Law Firm, we represent brokers and agents in all stages of DRE inquiries and disciplinary defense. If you have received notice of an investigation, contact our office to discuss how we can protect your license and your career.