Undisclosed Compensation, i.e., “Hidden Profit” and California Real Estate Licensees

Jozef Magyar, Esq. November 2021 A violation seen during California Department of Real Estate (“DRE”) audits is undisclosed compensation, also referred to as “hidden profit.”  California real estate licensees are required to fully disclose to their clients all compensation received or expected to be received by the licensee from the clients, vendors, tenants, buyers, and …