Q:     I know that many counties have begun to tighten restrictions on businesses but must real estate licensees continue to use the PEAD forms and not conduct traditional open houses?

A.     YES. The Department of Real Estate has announced that it will enforce the showing protocols.

In a letter released on October 9, the Enforcement Division of the Department of Real Estate (DRE) made it clear that the health and safety of consumers is a priority, and that complaints regarding non-compliance with the showing protocols have been, and will continue to be, investigated; and remedial action will be taken  That letter is posted on the CAR website.

COVID showing protocols (per the COVID-19 Real Estate Guidance or “the Guidance”) require, among other things, that all visitors to a property wear masks, agree to the posted rules of entry (by means of the PEAD form) and use hand sanitizer upon entry. Agents must also clean and disinfect the property both before and after each showing and ensure that everyone complies with social distancing and all other COVID showing protocols.

To demonstrate how seriously the DRE takes these showing protocols, the Enforcement Section’s October 9th letter details the steps it will take upon receiving information that a licensee is not acting in strict compliance with those showing protocols; the enforcement process will be handled in the following order:

  1. The DRE will first attempt to educate the licensee or licensees, including contacting a licensee’s responsible broker if the licensee is a salesperson or broker associate. As part of that effort, the Enforcement Section will review the Guidance with the licensee and seek to obtain assurances from the licensee and the licensee’s broker that the brokerage, its affiliates/agents, and its employees will comply with the Guidance going forward.
  1. If a licensee or that licensee’s broker continues to operate outside the Guidance, the Department may consider pursuing citations and/or other disciplinary action, as is deemed appropriate. The Department also may refer the licensee and the licensee’s broker to state or local health and/or law enforcement officials for additional action.

The DRE has gone so far as to actually encourage Agents to come forward and make complaints. The October 9th letter concludes, “If DRE licensees are made aware of a real estate licensee who is not following the Guidance, please contact the Department of Real Estate at (877) 373-4542.”

PRACTICE TIPS:

  1. All Agents should strictly comply with the COVID-19 Real Estate Guidance.
  1. If you see any violations, first contact your manager/broker as to whether you should contact the DRE. 

WEEKLY PRACTICE TIP: DO NOT FORWARD TO CLIENTS.  This Weekly Practice Tip is for the exclusive use of clients of Broker Risk Management and their Agents.  It may not be reproduced or distributed without the express written consent of Broker Risk Management.  The advice and recommendations contained herein are not necessarily indicative of standards of care in the industry, but rather are intended to suggest good risk management practices.

© Copyright Broker Risk Management 2020                                                    12/11/20