A lot of companies use attorneys, which would not require the DRE to be involved. In California an attorney can perform all tasks a DRE licensee can do without having a license.

Unless they are a bona fide law firm they need to be listed with with DRE if they are going to accept upfront fees.  If they are "partnered" with a law firm and are collecting a fee for the attorney, they are in violation of California Business Professions Code Section 6152.  If found guilty of violating this law the attorney could disbarred and both the broker and and the attorney could be fined $15,000. 

That's right.

People who say they are attorney backed, partnered with, affiliated with, in house attorney, etc are representing relationships that are flat out illegal in CA and most other states because

• The ABA prohibits an attorney paying a referral fee like what these transactions are
• An attorney can not be "in business" with any other not attorney entity.

The language in the California code that governs this referral fee business specifically states that the transactions "must be self sourced". What does that tell you? Just because the attorney collected the retainer and did the disclosures, doesn't meet the burden of proof. Because these very simple questions must be asked...

• "Mr. Attorney, how were you made aware that Suzi Homemaker needed your services?"
• "Mr. Attorney, did you provide compensation of any type to the entity that brought you Suzi Homemaker?" "Any type" means commission, processing service fees, "marketing" fees, etc.