A DRE broker who arranged 60 loans on 1-to-4 unit residential property has not filed the business activities report, now 45 days late. What daily penalty schedule applies to the late business activities report?
Correct Answer
A) Penalties run at $50 a day for the first 30 days, then $100 a day after
The business activities report is filed within 90 days after the broker's fiscal year end, and failing to file costs $50 a day for the first 30 days and $100 a day thereafter, to a maximum of $10,000. Other choices: the flat rate answers skip the step in the ladder; filing within the year is not a defense to a daily penalty; and there is a cap. Source: Cal. Bus. & Prof. Code § 10166.07
Why This Is the Correct Answer
The business activities report is filed within 90 days after the broker's fiscal year end, and failing to file costs $50 a day for the first 30 days and $100 a day thereafter, to a maximum of $10,000. Other choices: the flat rate answers skip the step in the ladder; filing within the year is not a defense to a daily penalty; and there is a cap. Source: Cal. Bus. & Prof. Code § 10166.07
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