Real Estate License Suspended.

In California, for example, restricted licenses exist and may permit continued practice, but they also expose real estate professionals to the risk of summary revocation for any violation of license conditions. The same California DRE disciplinary proceedings that have the power to revoke a real estate professional’s license do not have the authority to award contract cancellation, refund, or monetary damages, leaving real estate professionals at risk for additional civil litigation. Texas presents a third scenario. The state’s licensing authorities may deny license applications, suspend real estate licenses, or revoke real estate licenses based on the same listed convictions. This highlights a key problem: real estate licensing authorities in the United States operate with significant leeway to either punish criminal history in the most draconian sense or recognize rehabilitation and permit continued practice. The range of potential results when facing a real estate license suspension, and when analyzing whether it could lead to a complete loss of livelihood or permanent career limitations, also requires a real estate license defense lawyer to evaluate your history in light of a variety of factors. These include: - The nature and relatedness of the offense to your license;

• The existence and extent of any rehabilitation efforts you have made;
• Whether the conduct at issue was in the scope of your licensed activity or outside of your professional activity;
• The proximity of the offense in time to the present day; and,
• Any prior license disciplinary actions that have had a negative impact on your license. With this in mind, it is important that you not let anyone offer any form of blanket assurances regarding how the real estate licensing board is likely to handle your situation. Licensing standards vary from one jurisdiction to another and are subject to a number of variables that require specific analysis.

How Do California and Texas Treat Convictions, Deferred Adjudication, and Criminal History Disclosure?

In California, criminal convictions are listed in the DRE’s regulations as examples of grounds that could lead to license suspension or revocation. These same convictions can result in denial of a license application under California’s Real Estate Law. However, in deciding whether to pursue any of these consequences, the DRE must consider the applicant’s or licensee’s criminal history in light of relevant evidence of rehabilitation. The DRE identifies several examples of evidence of rehabilitation, including restitution, expungement of the record, completion of substance abuse or anger management programs, and completion of ethical education courses, but the state’s disciplinary process also gives weight to evidence that does not fall within the DRE’s identified categories. Texas law allows licensing boards to penalize various criminal convictions in certain circumstances as well. Texas Occupations Code section 53.021 permits a licensing authority to suspend or revoke a license, disqualify a person from receiving a license, or deny the opportunity to take a licensing examination based on conviction of an offense that directly relates to the duties and responsibilities of the licensed occupation, an offense listed in Article 42A.054 of the Code of Criminal Procedure, or a sexually violent offense as defined by Article 62.001 of that code.

Texas law recognizes that certain types of criminal convictions should not necessarily prohibit someone from practicing in the real estate industry. Under Texas law, deferred adjudication does not create a blanket exemption from licensing consequences; TREC may consider deferred adjudication in determining an applicant’s or license holder’s fitness and may deny, suspend, or revoke a license under the applicable statutes and rules. In these cases, the licensing authority evaluates the relevant circumstances, including the amount of time since the last criminal activity, rehabilitation, and compliance with any conditions of community supervision. For a Texas real-estate license holder, failing to timely notify TREC within 30 days after a final felony conviction or the entry of a guilty or nolo contendere plea to a felony or criminal offense involving fraud may constitute a violation and may lead to additional discipline; applicants must disclose the criminal-history information requested by TREC. This holds true whether you’re applying for a new license, renewing your license, or defending yourself against a license suspension or revocation. In summary, whether you need to disclose your criminal history or are facing a license suspension or revocation, you should work closely with a defense attorney who has experience representing real estate professionals. Your attorney can help make informed decisions and protect you from unnecessary, negative consequences.

When Does a Complaint Become a Formal Accusation or Suspension?

The South Carolina LLR notes that complaints may be made by buyers, sellers, employees, lenders, brokers, buyers’ and sellers’ agents, and other licensed industry professionals. The LLR notes that its investigators may contact you in order to speak with you or to request documentation in connection with an ongoing investigation. If the LLR moves forward, the possible outcomes for real estate disciplinary proceedings include:

• Formal reprimand
• Suspension of license
• Revocation of license
• Requirement for additional coursework In California, the disciplinary process also has timelines and procedures. In certain cases, the process has been modified to provide more protection against summary license suspension and revocation. For instance, if you receive a Statement of Issues, you will have 15 days to file a Notice of Defense. If you receive an Accusation, you will likewise have 15 days to file a Notice of Defense. If a Statement of Issues or Accusation is filed without your knowledge, your attorney may be able to file a motion to set aside the default. Depending on where you are located and the current stage of your case, we will be able to offer clear guidance on the steps you should take next. Real estate license defense is a high-stakes practice, and the quality of your defense is important. Our real estate license defense lawyers and consultants know the real estate industry from the inside out. If you’re concerned about the possibility of losing your license and your ability to earn a living in the industry, we recommend that you not wait to speak with your defense attorney. It is always in your best interests to take all necessary steps to protect your license, your career, and your ability to continue practicing law in the future.

Which Real-Estate Conduct Puts a License, Broker, or Trust Account at Risk?

In California, the Real Estate Department may pursue disciplinary proceedings or criminal charges against real estate professionals for alleged violations of state law and real estate regulations. Specific examples of allegations that can jeopardize real estate professionals’ licenses, trust accounts, and broker licenses include (but are not limited to):

• Broker Trust Fund Shortages or Fund Conversion
• Failure to Maintain Separately or to Deposit or To Use Separately (Commingling) Broker Trust Funds
• Real Estate Salesperson Practicing Without a Sponsoring Broker

The California Department of Real Estate lists dozens of other examples of real estate professional misconduct as well. Many of these examples are similar to the examples listed by the North Carolina Real Estate Commission. In North Carolina, the Real Estate Commission can issue disciplines, including license revocation and suspension, for several types of conduct. Real estate professionals in North Carolina may face professional discipline for conduct including, but not limited to:

• Giving legal advice without being admitted to practice law
• Providing false or misleading information to applicants, buyers, sellers, and other real estate industry professionals
• Misrepresenting the material condition of a real property or material omissions when talking about the material condition of a real property
• Using a real estate license for illegal or unethical purposes
• Refusing to comply with the Real Estate Commission’s rules and regulations

The North Carolina Real Estate Commission lists numerous real estate misconduct examples as well. While some of these examples differ from those on the California DRE’s website, they all are serious allegations that could lead to criminal and civil consequences along with loss of real estate license. The examples listed above are not exhaustive. Both the California DRE and the North Carolina Real Estate Commission have much broader lists of grounds for pursuing professional discipline. If you have concerns about your real estate license, broker license, or trust account, you should contact our firm as soon as possible. We understand what it takes to protect you and your license.

Get Advice on Your Situation

If you want someone to look at the specifics of your case, Spodek Law Group handles federal criminal defense nationwide from New York and Los Angeles. The firm has been practicing since 1976 and its motto is simple: we owe loyalty to only you. Call 888 348 8028.