Broker Wyatt would like to launch a direct mail advertising campaign in which Wyatt solicits advance fees to fund a specified short sale-related service for the benefit of the principal. Wyatt submits the planned promotional materials to the Department of Real Estate (DRE) for review. One week later, Wyatt begins sending his mailers. What did Wyatt do wrong?
Wyatt did not obtain approval from the DRE before circulating his advertisement.
A broker needs to obtain approval from the Department of Real Estate (DRE) prior to soliciting for an advance fee. The advance fee paperwork must be submitted to the DRE for approval at least 10 days prior to use.