Calif. Business and Professions Code §10145
Amended by A. B. 607
Effective date: January 1, 2016

An individual California Bureau of Real Estate (CalBRE) broker or corporate officer who authorizes an unlicensed employee to make with withdrawals from the broker’s trust account is required to obtain surety bond coverage sufficient to cover trust funds accessible by an unlicensed employee. The surety bond may now include a maximum 5% deductible if the broker provides proof of:

  • separate surety bond coverage for the deductible amount;
  • a cash deposit equal to the deductible amount kept separate from all other funds accessible to the broker or the broker’s employees; or
  • other forms of financial responsibility designated by the Real Estate Commissioner. [See RPI Form 507]

Read more:
Read the bill text.
Brokerage reminder: Trust fund(amentals)