CCHAL reports that “The California Bureau of Real Estate (BRE) is taking enforcement actions against M & C Management, one of the largest managers of homeowner associations in California.” Readers should understand that the suit is not based on HOA (CID) law violations but on real estate law violations. HOA property managers are not held to the same strict real estate property manager requirements. WHY NOT?
Real estate property managers are held to strict procedures and accountability, especially in regard to money matters, as this complaint reflects. Real estate brokers, the person in charge under which real estate agents must be licensed, must deposit buyer down payments within 72 hours, must maintain separate banks accounts, etc. and are subject to random audits by the real estate department. Penalties are severe. Why are HOA managers getting a free ride, especially when they hold assessments, “trust money,” for hundreds or thousands of homeowners?
None of the state HOA manager licensing laws come close to requiring strict money accountability or strict enforcement in general as required of property managers. Yet, many states see no evil and turn to the special interests managers to train other managers and board members. Or is it more accurate to say “indoctrinate” these parties, including state legislators.
When state legislatures ignore the 14th Amendment protections of due process and the equal protection of the laws, the people lose. When the National Association of Realtors (NAR, which is a business trade group supporting its member agents) fails to demand that HOA property managers be licensed and held accountable as are real estate property managers, which you would think would be in their best interest, the people lose.
When HOA reform legislation fails to demand changes on the basis of constitutional protections, the people lose. When brave homeowners fail to raise constitutional issues when in court using competent lawyers, the people lose.
 Id, CCHAL Newsbrief email. (1.9.2016).