As a real estate broker or realtor, you are among the entrepreneurial great thinkers of our land. Your passion and ability to assist several sellers, buyers, renters, and landlords in researching, completing, and negotiating real estate transactions take dedication, confidence, professionalism, and hard work.

Unfortunately, a customer complaint about your work or a criminal allegation could jeopardize your hard-earned career and source of livelihood as a realtor. If you face a statement of issues or a formal complaint, your practice license as a realtor could be at risk of revocation or suspension.

The chances of the licensing board taking disciplinary action against you will increase unless you use the services of an experienced defense attorney to challenge the complaint and the allegations against you.

Our attorneys at Riverside License Attorney are familiar with the procedures, regulations, and laws involved in creating defenses to help real estate brokers challenge allegations that could jeopardize their careers. We have several years of experience in this industry and can help you secure a favorable outcome in your case.

The Crucial Roles of Real Estate Agents and Brokers

The Bureau of Real Estate (BRE) issues licenses to real estate agents and brokers, who are vital players in the real estate market. Here is a brief overview of the crucial roles of these professionals, respectively:

Real Estate Agents

As a licensed real estate agent, you are the connection point between sellers and buyers. Some of your duties include (but are not limited to) the following:

  • Oversee the entire property transfer process
  • Establish market value and the home sale price
  • Offer relevant advice on title documents and closing costs
  • Prepare closing arguments
  • Markets available homes and schedules home tours, like open houses

Aside from constantly interacting with sellers and buyers, your job roles also help you interact with appraisers, title/escrow officers, inspectors, and other experts involved in the entire real estate transaction. At every stage of the real estate transaction process, you must be careful because a single mistake or error could put your career and reputation at risk.

Real Estate Brokers

Also known as a realtor, a real estate broker invests in land supply. Below are some of the crucial roles he/she plays in the real estate industry:

  • They negotiate the terms of lease or sales
  • They transfer properties
  • They act as middlemen between sellers and buyers
  • They pay attention and ensure sellers and buyers are compliant with contractual terms
  • They arrange financing for properties on sale

Some brokers also act as managers for sales team members who work under his/her professional license. That means if the sales team members make any mistake or violation in the marketing process, you, the licensed real estate broker, will be accountable for the mistakes.

The entire process of buying or selling real estate involves multiple parties. Unfortunately, it is you, the realtor, who many people point fingers at whenever there is an issue or misunderstanding in the transaction process. Therefore, to prevent making a mistake that could endanger your career as a real estate broker, you should be well-versed in the laws and rules of the real estate industry.

On top of that, it is a wise idea to retain the services of an attorney if you are facing a complaint or criminal charges that could put your practice license at risk of suspension, revocation, or other disciplinary actions by the BRE. Your attorney can prepare viable defenses and represent your best interests during the investigation and any formal hearing to help you secure a favorable outcome.

Bureau of Real Estate (BRE's) Mission

Many real estate brokers assume BRE is there to protect their interests, which is untrue. Instead, its primary mission is to protect the public from all forms of financial fraud or unjust acts that can occur during a real estate transaction. Some of the tools the BRE uses to ensure this mission is accomplished include:

  • Restrictions and regulation of realtors to only licensed individuals
  • Creation of rules that ensure high standards and professionalism are maintained in this industry
  • Enforcement of regulations and laws via different types of disciplinary actions

Specifically, the BRE's main focus is ensuring that all real estate agents and brokers comply with Real Estate Law and other related laws. Any violation or breach of these laws or other rules set by the BRE could attract disciplinary action. Below are some common violations that could attract the BRE's disciplinary actions:

  • Unprofessional conduct
  • Operating without a valid license
  • Failing to supervise all co-assistants working under your practice license
  • Trust account violations
  • Record-keeping violations
  • Failure to disclose you have a criminal record on your application
  • Misrepresentations and real estate fraud
  • Failure to disclose an arrest or criminal conviction within the required time
  • Being under arrest or investigation by another real estate licensing agency or law enforcement officers as a suspect in a criminal case

The above are only some of the allegations you can face as a realtor, threatening your career and reputation. You should speak with a qualified attorney to increase your chances of securing a favorable outcome when facing an accusation or complaint that could jeopardize your career as a realtor.

An experienced attorney who understands how BRE handles complaints against a licensed real estate broker can increase your odds of securing a favorable outcome.

The BRE's Disciplinary Process

The BRE can receive a complaint against you for several reasons and from different sources, including law enforcement officers and the public. However, these allegations mainly come from an aggrieved consumer who is unsatisfied with your services.

Since the BRE's primary mission is to protect the public's best interests, they will begin an investigation immediately when they receive a complaint against you. The licensing board could also begin an investigation against you once they receive notice that you are under investigation or guilty of a criminal offense.

Once the board receives a consumer complaint or allegations against you, they could decide to dismiss the case if:

  • The allegations are "unmerited" or "non-substantial"
  • The accusations are "substantial and merited," but there is no sufficient evidence to support the allegations

However, an investigative process to uncover all the facts will begin if your case is serious. At this juncture, the licensing board could decide to conduct a "sting operation" against you if contacting or informing you of the investigation would ruin their chances of collecting adequate evidence against you.

However, if a "sting operation" is unnecessary in your case, the board will issue an investigation notice, informing you of the allegations you are up against. When that happens, you should speak with an attorney before you file a response to the accusation or complaint filed against you.

In the meantime, before your attorney arrives, you should cooperate with and respect the BRE's investigator to increase your odds of securing a favorable result in your case. However, beware that any information you decide to disclose to them could and will apply against you at the administrative hearing, lessening your odds of securing a favorable outcome.

If the board issues you with an interim suspension, your attorney can help you challenge it to continue using your license during the entire investigation, which could take weeks or months. When the licensing board feels it has a substantial complaint against you, it will issue you a formal accusation detailing the allegations you are up against.

Once that happens, your attorney can help you file your Notice of Defense detailing your side of the story and your defenses against the allegations you are up against. In most cases, a skilled and aggressive attorney could convince the board to drop the case before the formal administrative hearing becomes necessary.

However, if an administrative hearing or proceeding is necessary in your case, you should be ready to fight the allegations or complaints you are against before an administrative law judge (ALJ). Administrative hearings work like trials in the criminal justice system, and the ALJ is responsible for determining whether the allegations you are up against are true.

If the allegations you are up against are true, the board will recommend appropriate and fair disciplinary action for your case. The key to securing a favorable outcome is retaining the services of an experienced attorney who understands how ALJ treats these cases.

A competent attorney can present mitigating arguments and exculpatory evidence to weaken the prosecutor's case against you. If securing a victory in your case is challenging because of the facts and circumstances of your case, your attorney can fight to secure a lighter disciplinary action, including license suspension.

A reduced disciplinary action like a license suspension will allow you to retain your license and keep working to earn revenue to feed yourself and your family.

Possible Disciplinary Actions the BRE Could Impose

Depending on the circumstances and facts of your case, you should expect the following forms of disciplinary actions if the board finds the allegations you are up against to be true beyond a reasonable doubt:

  • Administrative fines — The fines the board could require you to pay for your case could range from minor to heavy, depending on the seriousness of your case
  • Private or public letters of apology or reprimand — This means issuing a public apology about your professional conduct, which can significantly damage your reputation
  • License revocation or suspension — The former will prevent you from using your practice license revocation for an indefinite period and the latter for a definite specified period
  • Stay of revocation, but with license probation — When awarded this disciplinary action, you will continue using your practice license, but you should be ready to comply with various conditions
  • Civil or criminal penalties — If your violation involves criminal/civil offenses, the prosecutor could file criminal charges against you on these grounds. That means you will face criminal penalties upon conviction in addition to the BRE's disciplinary actions

If you have a reliable and aggressive attorney, he/she can provide mitigating evidence to the ALJ to secure a lighter disciplinary action that does not include losing the license. The sooner you contact an attorney upon receiving the BRE's investigation notice, the higher your odds of securing a favorable outcome. Here are some factors to consider when looking for a reliable attorney:

  • The attorney's availability and accessibility
  • The attorney's qualifications and experience
  • Whether the attorney is legally licensed
  • The attorney's services fee
  • The attorney's credibility and reputation

How Criminal Charges or Conviction Could Impact Your License

According to Business and Professions Code section 10186.2, you have a legal obligation to inform the BRE of any criminal charges you are up against, regardless of whether the offense is a felony or misdemeanor. Similarly, if you are guilty of the offense, you should inform the licensing board of the conviction and the penalties you received.

You have up to thirty (30) days from the date of the relevant case to inform the BRE about it. For the board to impose disciplinary actions for the violation or conviction, the crime must be "significantly" related to your qualifications and duties as a broker in the real estate industry. However, it is worth noting that the licensing board has a "wide view" of what it considers "significant."

Aside from the potential penalties the court could impose upon a conviction, a charge could attract the BRE's disciplinary action against your practice license. However, when you win the charge, the court will drop the case, meaning you will not face any penalty or disciplinary action by your licensing board.

A skilled criminal defense attorney can help you gather and prepare defenses to help convince the jurors or judge to reduce or dismiss your charges.

Find a License Defense Attorney Near Me

As a real estate broker, you understand how valuable your practice license is to your daily business. Aside from being a legal requirement, you need the license to show prospective clients that you are a legit real estate broker.

Aside from offering you much-needed legal counsel, our attorneys at Riverside License Attorney will provide you with legal representation through every stage of the disciplinary process to secure a favorable outcome. Call us at 951-404-0569 to discuss your case details with our understanding attorneys.