Per the DRE regulations, the broker is directly responsible for any real estate transaction that his/her agent/broker associate conducts.
To cover possible expenses connected with this responsibility, REeBroker Group collects the Risk Management fee for each closed transaction.
Agent and associated broker transactions (reported to the company) that satisfy risk management conditions may be eligible
for up to $1 million coverage by our risk management policy. IMPORTANT: Any unreported activity makes the agent 100% liable for all legal expenses associated with these transactions.
Standard Risk Management Fee:
For real estate transactions, up to $1.0 million, the Risk Management fee is $135 per closed transaction.
There is an additional $13.50 per every Hundred Thousand Dollar price increment over $1.0 million.
Please note that risk management covers "errors and omission", not fraud, nondisclosure, or agent's illegal activity.
Agents will be 100% liable and not covered by risk management insurance if they have conducted themselves against the employing broker's and/or DRE rules and regulations.
The broker is the only authorized personnel to put in a claim with the risk management policy holder and will ultimately decide on how to continue.
If you are not sure how to proceed in a situation, consult with your broker for advice before proceeding.