2970. Advance Fee Materials.
(a) A person who proposes to collect an advance fee as defined in Section 10026 in the Code shall submit to the
Commissioner not less than ten calendar days before publication or other use, all materials to be used in advertising,
promoting, soliciting and negotiating an agreement calling for the payment of an advance fee including the form of
advance fee agreement proposed for use.

(b) Material used in advertising, promoting, soliciting and negotiating an advance fee agreement shall not be approved
if it:
(1) Includes any representation which is false, misleading or deceptive.

(2) Does not set forth a specific, complete description of the services to be rendered for the advance fee.
(3) Does not set forth the total amount of the advance fee along with the date on which the fee shall become due
and payable.
(4) Contains any provision which purports to relieve or exempt the person collecting the advance fee from an
obligation to fulfill verbal commitments and representations made by retained broker associates, retained
salespersons, employees and agents of the person contracting for the advance fee.
(5) Contains any provision which purports to give a guarantee that the real property or business opportunity in
question will be purchased, leased or exchanged or that a loan secured by real property will be obtained as a result
of the services rendered by the person collecting the advance fee.
(6) Does not set forth a definite date for full performance of the services promised under the advance fee agreement.
(c) Not less than 10-point type shall be used in advance fee agreements.

2972. Accounting Content.
Each verified accounting to a principal or to the commissioner as required by Section 10146 of the Code shall include
at least the following information:
(a) The name of the agent.
(b) The name of the principal.

(c) Description of the services rendered or to be rendered.
(d) Identification of the trust fund account into which the advance fee has been deposited.

(e) The amount of the advance fee collected.
(f) The amount allocated or disbursed from the advance fee for each of the following:
(1) In providing each of the services enumerated under (c) above.
(2) Commissions paid to field agents and representatives.



(3) Overhead costs and profit.
(g) In cases in which disbursements have been made for advertising, a copy of the advertisement, the name of the
publication, the number of the advertisements actually published and the dates that they were carried.
(h) In the case of an advance fee for the arrangement of a loan secured by a real property or a business opportunity, a
list of the names and addresses of the persons to whom information pertaining to the principal’s loan requirements were
submitted and the dates of the submittal.

Article 24. Private Vocational School Approvals