Attention Investor Brokers! - Posted by David(Ca)
Posted by David(Ca) on April 02, 2000 at 16:27:09:
The excerpt below was in the Spring 2000 California Real Estate Bulletin, this is a publication by the CA department of RE for their broker/salespersons.
It basically says (the way I read it) that a broker cannot use a mail receiving agent (like MBE) as a main office - even though it has a table to write on, a copier, a notary and somebody there during regular working hours to receive mail and tenant checks, etc. What a drag, I guess I’ll have to run out and spend $400-$1000/mo for a “definite place of business” (like that is going to happen anytime soon) to satisfy their (questionable) interpretation of the law.
Has anyone delt with this issue?? Any suggestions??
-------- Use Of Post Office Boxes And Mail Boxes --------
Commssioner’s Regulation 2715 requires that a real estate broker (except a broker employed in the capacity of a salesperson maintain on file with the Commissioner the broker’s principal office address, the address of any branch office, and the broker’s mailing address if different from the business office address.
The Department does not consider a post office box or a mail box a place of business. Use of a post office box or mail box as a business address does not satisfy the requirement of Section 10162 of the Business and Professions Code that a broker “have and maintain a definite place of business in the State of California which shall serve as his office for the transaction of business,” and may therefore subject a broker to possible license discipline.
It has come to our attention that many brokers are using post office boxes or mail boxes for delivery of real estate transaction mail and documentation. These box numbers are used on letterheads, return addresses on envelopes, business cards, loan applications, etc. While use of a “mail drop address” is permissible for certain business purposes, such addresses are not in compliance with real estate law for establishing a “business address.” Some mail box service providers use street addresses and numbers instead of post office box numbers. Nevertheless, they cannot be used as the broker’s official business address because they are still nothing more than “drop boxes” and not the actual place of business of the licensee.
Care should be exercised in using these “disguised” post office boxes. Department records display only the actual licensee business address. If broker correspondence and other material indicate only the drop box address and not the actual business address, consumers can be misled and confused.