Several of our larger accounts have hired a company Auditor to audit paperwork on behalf of the broker. I’d like to share some insights into this relatively new role in the real estate industry.
California BRE states that all files must be audited by either the broker or a licensed individual who is assigned to perform the task. Due to increased and more complicated paperwork requirements, many large brokerage operations are opting to create an auditing position just to complete these tasks.
The auditor works with agents and TC’s performing audits on transaction files to ensure broker/BRE compliance.
They may also responsible for updating agent/TC’s on any changes or additions for file requirements, ensuring everyone has the latest version of in-house documents as well as answering general questions.
There are several systems that must be set up in order for an Auditor to effectively perform duties and work well with staff.
1. Auditor Requirements. In addition to having a current real estate license in good standing, the auditor should have experience working on multiple files and performing audits. When interviewing, look at experienced TC’s first as a top candidate. They should be able to manage high volumes of transactions and have closed a minimum of 200 transactions. This ensures they have enough knowledge to independently determine if additional disclosures are needed on any given file.
2. Broker document requirements (Broker Doc Sheet) is essential for the Auditor to understand what is needed for files. If one has not been established, then a round table meeting to hash out the requirements should be completed ASAP.
3. File management. Ideally, for an Auditor to work at multiple sites, all files should be virtual. Using a document management program like Skyslope helps place all files in one location where they can be accessed by all. Skyslope also allows back and forth communication between the Auditor and TC/agent.
Consider these tips prior to creating an auditing position for your company.
Need help setting up your Transaction Coordination department? Call Diana Turnbloom today to help with systems and staffing.