If you are a licensed real estate broker or agent and receive a notice of board investigation, you should contact an experienced attorney immediately. It does not matter whether you face a board investigation, license denial, suspension, or revocation. An attorney will evaluate your case and advise you on defending your professional license. If you need a reliable license defense attorney, contact the Fresno License Attorney. We have seasoned attorneys who can handle all license defense cases, no matter how intricate.

Why You Need An Attorney

An attorney helps you understand the complaints filed against you. Consulting a reliable attorney as soon as possible puts you on the path to defending and reinstating your license. When the licensing board contacts you, you will probably have questions you need answered. Understanding your case is crucial to devising the best defense strategy. With legal help, you can have all your questions and concerns addressed. An attorney understands that a threat to your real estate broker or agent license is not just a threat to your reputation. It is also a threat to your career and livelihood.

The Role of Real Estate Brokers

Real Estate Brokers Act as intermediaries between buyers and sellers in real estate transactions. Real estate brokers also act as guides. For example, real estate brokers guide potential homeowners through buying a home. The professionals can help potential buyers find properties and draft documents like a promise to purchase.

While performing their duties, real estate brokers must adhere to certain ethics and rules. For example, they must disclose to potential buyers if they know anything that could jeopardize a property. If a real estate broker learns about issues with a property’s roof or foundation, they must disclose this information to the potential buyers.

Real estate brokers must also ensure that any information they release to the public is accurate. Details on property descriptions must be correct, as must additional information like the year of construction, square footage, and the number of parking spaces.

Real Estate Brokers Working For Sellers

Real estate brokers can work on behalf of a seller or buyer. Some of the duties that real estate brokers can perform on behalf of sellers include:

  • Listing properties for sale on the local multiple listing service, abbreviated as MLS
  • Sharing MKS listings with other brokers to have many potential buyers learn about a property
  • Advising property sellers on how to prepare their properties for listings and showing
  • Supervising property showings and reporting feedback and results to sellers
  • Submitting any available offers to the seller for consideration
  • Help the seller negotiate offers and handle purchase transactions with the buyer
  • Act on the seller’s behalf throughout the property sale process
  • Deliver and explain documents, transaction items, and disclosures
  • Work with the seller through the closing and the process of moving out of their home or commercial property

Real Estate Brokers Working With Buyers

Real estate brokers also work with people planning to buy homes or commercial properties. A real estate broker can provide advice and services to help buyers find a home or commercial property that suits their needs. A broker comes in at various stages of the property purchase transaction:

  • Helping a buyer find property in the desired area and ensure that the properties recommended are within the buyer’s price range
  • Coordinate and help potential buyers visit and view properties
  • When a buyer decides to make a purchase, a real estate broker helps the buyer draft the initial offer and purchase agreement
  • Help the buyer negotiate with the seller or the seller’s agent or broker
  • During the execution of the purchase agreement, the broker coordinates the purchase process on the buyer’s side
  • Delivers and explains all the relevant documents during the purchase transaction
  • Coordinates the property inspections, reports, and repair negotiations
  • Work with buyers through the property closing and moving in or taking possession

Real Estate Brokers Can Have Agents Working Under Them

A real estate broker can be licensed to have agents working under them. These brokers are known as supervising or managing brokers. The agents handle the majority of the brokerage transactions. While supervising agents, real estate brokers:

  • Verifies the licensing of real estate agents before employing them
  • Provide training resources for real estate agents and instruct them on what to do
  • The real estate broker is responsible for the agent’s conduct, performance, and compliance
  • Provides support services and resources for the agents to execute the assigned duties
  • Maintains a brokerage website to enhance agent marketing

Real estate brokers with agents working under them must adhere to the highest practice standards. They must maintain high customer service levels and ensure compliance with all real estate laws.

Operating a real estate brokerage comes with some considerable risks. Brokers must educate and monitor their agents to ensure compliance with the laws.

Actions That Can Trigger An Administrative Complaint

Real estate brokers must always act professionally to protect their licenses. However, this does not always happen. When money is on the line, some brokers can go to great lengths to obtain as much money as possible. This could mean violating their professional ethics and engaging in criminal activities.

Violations are common in the real estate industry, where a lot of money is at stake. Real estate brokers earn on a commission basis, depending on the properties sold. As a real estate broker, you might be tempted to increase the amount you make from a single sale. You might push the limits of what is allowable and what is not. Below are some of the common ethical issues that can trigger professional discipline for real estate brokers:

Handling Disclosures

The most common disputes in real estate transactions revolve around handling disclosures. Brokers can conceal property defects to avoid scaring off potential buyers. However, the real estate board requires brokers to make disclosures within the scope of their professional license. If you doubt certain property details, disclosing is the best option.

Multiple Orders

For a broker, the higher the offer, the higher the commission, but ultimately, the final say lies with the property owner. A higher offer can be accompanied by numerous contingencies, dragging the closing process. On the other hand, a cheaper offer can be easier to close. Brokers should not be biased towards a particular offer. Instead, they should present all the available offers as objectively as possible. The broker must reveal all the confidentiality issues to the buyer and seller.

Accessing Properties Without Permission

Real Estate brokers and agents have the seller's authority to show houses to potential sellers. However, this does not mean they can access the property whenever they want. Most sellers have terms and conditions for showing properties, and brokers must adhere to these terms. Allowing unauthorized access to a property is a violation that can lead to professional discipline. Real estate brokers are not always available to show houses, but even during these times, they should not allow unauthorized access to property.

Social Media Use

Sometimes, blurred lines exist between what you can or cannot post on social media. The real estate board considers social media posts made by licensed brokers or agents as marketing. Therefore, real estate brokers must appropriately present themselves. A broker must post the correct photo and information when describing a property. Brokers must also disclose all their professional affiliations.

Other Violations

Other common violations for which the real estate board can initiate professional discipline include the following:

  • Operating without a valid professional license
  • Operating outside the scope of your license
  • Inadequate supervision or failing to supervise the agents working under you
  • Employing real estate agents who do not have a valid license
  • Committing real estate fraud, which can include misrepresenting information to clients to defraud them
  • Engaging in unprofessional conduct
  • A criminal conviction or facing criminal charges that are significantly related to your profession
  • If another agency is investigating you for a violation or you are under investigation by a licensing board outside California.

Numerous violations can trigger board investigation and discipline. Any significant violation can cause the board to take disciplinary action against you, primarily if the violation is related to your profession.

What Triggers a Board Investigation

In most cases, the board initiates investigations after receiving complaints from the public. The board can also investigate you upon learning of disciplinary charges against you. The board dismisses some of the complaints received if the complaints are unsubstantiated. However, if a complaint is significant, an investigation will commence.

The board can contact you directly to inquire about the disciplinary action. In most cases, the board sends a notice of investigation via mail. However, the board might assume that contacting you will limit their ability to collect evidence. In this case, the board will perform discreet investigations, often known as a sting operation. You should contact an attorney when you learn of a board investigation.

The board investigator will contact you to commence the investigation process. You should refrain from giving information to the board investigator before you first contact an attorney. An attorney will advise you on what you should or should not say to avoid incriminating yourself. The information you give the board investigator will form part of the evidence against you.

If the board imposes an interim license suspension, an attorney will strive to reinstate your license. A license suspension might seem like a simple disciplinary action. However, it can be detrimental because the board investigations can last months or even years. With an interim license suspension, you cannot operate until the investigation ends.

The board will make a formal accusation if it has significant evidence against you. You will have an opportunity to defend yourself with the help of a lawyer. Ensure you go for a lawyer experienced in license defense for the best results.

Professional Discipline for Licensed Real Estate Brokers

Licensed real estate brokers and agents must adhere to federal and state laws and professional conduct when performing their duties. Violations of the rules and professional standards can subject a real estate agent to professional discipline. A real estate broker must comprehensively understand their professional responsibilities to help them safeguard their career.

Several sanctions are possible should a real estate broker face administrative discipline. The applicable disciplinary actions can vary significantly depending on the nature of the violation. The more significant the violation, the more severe the potential discipline. Sometimes, a broker can face an administrative complaint but not face any discipline at all. The broker can be exonerated, and no further disciplinary action is taken.

Some of the potential administrative penalties that a broker can face include the following:

A Reprimand

The real estate board can publicly reprimand a real estate broker for alleged professional misconduct. A reprimand is issued mainly for minor offenses. Sometimes, a reprimand is the only sanction imposed by the board. However, sometimes, other administrative enforcement actions can accompany a public reprimand.

Civil Fines

The real estate board can impose fines on professionals who violate the law. The board can fine a real estate broker through an administrative proceeding. If the board imposes a fine and a real estate professional fails to pay, it can result in license suspension or revocation.

License Suspension

Real estate brokers can temporarily have their professional licenses suspended. A license suspension can be definite or indefinite. In a definite license suspension, the license is suspended for a defined period, like 30 days. When the suspension period is over, the license is reinstated automatically.

License Revocation

A real estate broker can also be subject to license revocation, a harsher penalty than a license suspension. A license revocation occurs through an administrative proceeding. Compelling advice indicating that the broker engaged in severe misconduct must also be provided.

Find a Reliable License Attorney Near Me

Your choice of attorney will significantly impact the outcome of your license defense case. To obtain the best results, you should go for an experienced attorney handling license defense cases. At the Fresno License Attorney, we have seasoned attorneys who can handle your case and obtain the best possible results. Given our extensive experience, we are not afraid to handle even the seemingly intricate cases. Contact us at 559-777-7040 to speak to an attorney.