Real Estate Property Management Compliance
Lariat Realty Advisors provides compliance materials and guidance to ensure that your company is operating within the rules and regulations of the real estate commissions. Our clients consist of owners, managers, and investors of multi-family properties. Companies that fail to comply with these requirements risk significant legal and financial consequences.
Why Compliance Is Important
The real estate industry is heavily regulated, and many laws and regulations govern how property management companies operate. They address topics like licensing, fair housing, trust accounting, and onsite operations. It is crucial to understand and comply with the requirements of each jurisdiction to avoid fines, sanctions, and loss of business.
Lariat Realty Advisors can help ensure you are operating in compliance with the real estate commissions.
With our compliance materials and knowledge of each state’s rules and regulations, we can proactively help you identify potential compliance issues and recommend steps to correct them. We can also prepare your onsite employees for an audit or investigation by the real estate commission by providing state specific compliance manuals and audit checklists.
What is Involved in Real Estate Audits
Audits can be random, triggered by a complaint with the real estate commission, or routine. Many jurisdictions have requirements for their auditors to review firms every so often.
Whether it is in person or virtual, an audit usually involves:
- The Real Estate Commission will show up onsite or contact your broker and/or company to let you know you will be going through an audit.
- You will be given a deadline to gather requested information and supporting documentation.
- The auditor will review the items provided and follow up with any deficiencies to be addressed.
- You will be given a deadline to fix and report the solutions and provide applicable documentation to the investigator to close out the audit.
Having successfully resolved many complaints and audits over the years, Lariat Realty Advisors can provide guidance and walk you through the process.
We interface among our clients, their attorneys (if applicable), and the real estate commission to ensure any issues are resolved and documented with the real estate commission.
Tips to Keep Your Business Compliant
- Stay up-to-date with the real estate rules and regulations
- Maintain accurate and complete records for the jurisdiction’s required number of years
- Implement policies and procedures in alignment with relevant laws
- Provide ongoing employee training and education
- Conduct regular internal audits
- Implement a system for reporting compliance issues
Commissions are cracking down on unlicensed property management and leasing activities. To avoid fines, sanctioning, and loss of revenue, it is crucial to address this aspect of the business.
If your company needs to ensure you are operating compliantly with the Commissions, Lariat’s materials, guidance, and support can help.