California Takes Action Against Real Estate Misconduct: What Property Owners Should Know
The California Department of Real Estate (DRE) regulates real estate professionals and works to protect consumers through licensing, education, audits, and enforcement. In its September 2026 announcement, the Department reported 39 enforcement actions involving violations such as fraudulent maintenance billing, misuse of client trust funds, and inadequate broker supervision.
These cases are a good reminder that property owners should understand how their investments are being managed. When it comes to maintenance, that means knowing how work is approved, how contractors are selected and paid, and whether completed repairs match the original request. Estimates, invoices, and receipts provide a useful record of expenses and help identify discrepancies before they become larger problems.
It’s equally important to understand how a property management company handles client funds. Ask whether rental income is held in designated trust accounts, how transactions are documented and reconciled, and who is authorized to access those accounts. Property owners can also use the DRE’s online database to verify real estate licenses and review any disciplinary history before hiring a professional.
A property management company plays an important role in protecting both the condition and financial performance of a real estate investment. At Roque & Mark, we recognize that this responsibility extends beyond rent collection and maintenance requests. It involves keeping accurate records, working with reliable vendors, addressing property needs, and keeping owners informed along the way.
Thank you to the California Department of Real Estate for investigating complaints and pursuing enforcement actions against unscrupulous professionals. Please read their new press release on fraud by clicking here.
California property owners who suspect financial misconduct or other real estate violations can file a complaint directly with the Department of Real Estate. To learn more, visit the California Department of Real Estate website.