Calif. Business and Professions Code § 10145
Amended by S. B. 764
Effective date: January 1, 2018
A real estate broker may obtain insurance which protects the broker from wrongful acts committed by employees instead of obtaining a surety bond to cover an unlicensed employee who is authorized to withdraw funds from the broker’s trust fund account.
Editor’s note — A broker’s errors and omissions insurance policy may exclude coverage for wrongful acts. Thus, a broker who allows unlicensed employees access to trust funds need to check their coverage and obtain additional fidelity and crime insurance, or obtain a surety bond to cover the amount of trust funds to which the unlicensed employee has access.