Every year, the Bureau of Real Estate (BRE) receives, reviews, and investigates several complaints and criminal allegations about licensed real estate brokers and agents from consumers, colleagues, and government authorities. After all, their primary mission is to protect consumers and the public from fraud-related cases and unjust practices by real estate brokers and agents.

If you are a licensed real estate broker facing an investigation or possible disciplinary action due to a complaint filed against you, retaining the services of an attorney should be your priority. A skilled attorney can offer you relevant legal advice and put you on a great path to defending your practice license, the cornerstone of your career as a real estate broker.

At Sacramento License Attorney, we understand that a threat to your practice license as a real estate broker could easily jeopardize your reputation and livelihood. If your real estate broker license is at risk of suspension, we can help.

Vital Duties of a Real Estate Broker

A real estate broker is a valuable professional who provides the public with crucial services that several citizens and non-citizens need. Generally, real estate brokers invest their money in purchasing land, allowing it to accrue interest over time and later advertising it to potential buyers.

While land is typically scarce, a real estate broker allows the general public to access and purchase it easily. In a nutshell, below are the vital duties of a real estate broker:

  • Assisting people in the transfer of their properties

  • Helping people negotiate the terms for land sales and leases

  • Acting as the middleman between sellers and buyers of lands

  • Ensuring both the buyer and the seller understand and comply with the contractual terms

  • Arranging financing options that land buyers should use when making their payment

  • Managing and supervising the sales team who work under his/her practice license

A licensed and competent real estate broker understands all the rules and regulations governing their industry to avoid mistakes that could attract the BRE's disciplinary actions, including license suspension. For example, when a sales team member who works under your practice license violates a real estate rule or regulation, the BRE will hold you liable for his/her conduct.

A reliable real estate broker should also stay informed of the current federal and local economies to ensure the properties he/she promotes or markets are within the affordable price range. Before closing any real estate transaction, a reliable real estate broker must evaluate its value and ensure the work of all experts involved in this deal is excellently done.

Unfortunately, the nature of your duties as a real estate broker exposes you to all kinds of criminal charges, lawsuits, and formal claims to the BRE. When a dissatisfied client or any member of the public files a complaint against you, what you do immediately can mean the difference between proceeding with your services and suspension of your license or a worse disciplinary action like revocation.

To stand a chance of securing a favorable outcome once the board receives a complaint against you, you should contact a skilled attorney for legal guidance henceforth.

Understanding the Primary Mission of the BRE

Unlike most real estate brokers believe, the BRE's job is not to protect their best interests. The primary mission of the BRE is to protect and safeguard consumers and public members from fraudulent real estate transactions. However, that does not mean the board is against you and that disciplinary actions are inevitable when a consumer files a complaint or claim against you.

When a complaint is launched against you, it is up to you to prove your side of the story to the board and continue offering your services lawfully. Some of the tools the board uses to enforce and achieve their mission include:

  • Ensuring only qualified people receive licenses to offer real estate brokerage services

  • Setting rules and regulations that uphold high work standards in the real estate industry

  • Ensuring all the licensed real estate brokers abide by the set regulations and laws

  • Enforcing regulations and laws through disciplinary actions

How the BRE Handles Complaints Against Licensed Real Estate Brokers

When the BRE receives a complaint against its licensee from a consumer or a member of the public, it will begin an investigation on the matter if:

  • The board has jurisdiction over the allegations or complaints you are up against

  • The allegations you are up against are substantial or merited

  • The complaint you are up against is about possible violations of real estate law

If the above facts are true, the board will begin an investigation against you to determine whether a formal misconduct charge should be filed against you. At this point, the board could decide to notify you about the investigation via your email or conduct an undercover “sting operation” if they suspect contacting you would jeopardize their ability to gather sufficient evidence against you.

In either of these instances, contacting an attorney would be a great move if you suspect you are under scrutiny by the BCE. When the board investigators contact you to ask questions about the alleged complaint, you should speak with an attorney before responding to any of their questions. Generally, any information you disclose to the BRE's investigators could lessen your chances of winning the case.

Depending on the facts of the allegations you are up against, the board could issue an interim suspension, requiring you to quit offering your services until you receive a verdict on your case. Your attorney can help you challenge the interim suspension since this investigation could be lengthy, taking several months or sometimes years.

If the BRE feels they have a credible case against you, it will serve you with a formal accusation detailing allegations or complaints you are up against. With the legal help of your attorney, you can provide defenses to challenge these allegations. In some cases, an aggressive attorney could help you secure a favorable settlement deal or dismissal of the case, meaning a formal hearing will be unnecessary.

However, even if a formal or administrative hearing is necessary, your attorney can help you prepare proper defenses to challenge the allegations for the best possible outcome. If a dismissal of the case could be challenging to secure, a skilled attorney will strive to help you secure a favorable disciplinary action that allows you to continue practicing real estate brokerage.

Possible Disciplinary Actions You Should Expect at the End of the Administrative Hearing

Depending on your unique case’s facts, the administrative law judge (ALJ) could recommend the following disciplinary actions to the BRE:

  1. Administrative Fines

The amount of fine you will pay for your violation or misconduct will depend on the nature and seriousness of your unique case.

  1. Public or Private Letter of Reprimand

Aside from negatively affecting your reputation, this letter could affect your ability to become recruited or gain new clients in the future.

  1. License Probation

For non-serious offenses, the ALJ could recommend you serve a probation or parole term. However, during the probationary period, you must adhere to strict terms and requirements, which is more favorable than losing your practice license

  1. Refrain Orders

As the name suggests, these are orders requiring you to cease or refrain from repeating the violation or misconduct.

  1. License Revocation or Suspension

Some of the most serious disciplinary actions you could face for misconduct or violation related to your duties as a real estate broker are license revocation or suspension. When your practice license is revoked, you will lose it, meaning you cannot continue offering your services. However, if your practice license is suspended, you will lose it temporarily for a certain period.

It is worth noting that the disciplinary actions the ALJ will recommend at the administrative hearing are not final. The BRE will review the recommended disciplinary actions to determine whether they suit your unique violation. If the recommended disciplinary action does not match the seriousness of your offense, the board could choose to modify it and impose a suitable discipline.

Examples of Allegations or Violations That Could Attract the Above Disciplinary Actions

The following are some of the common violations that could land you, a licensed real estate broker, in trouble with the BRE and potentially subject you to the disciplinary actions listed above:

  • Operating or offering your real estate brokerage services without a license

  • Unprofessional conduct

  • Failing to oversee or supervise all assistants that work under your license

  • Exceeding the limit of your expertise or license

  • Failing to keep accurate records of trust proceeds

  • Providing your clients with misrepresentation of information or engaging in real estate fraud

  • Failing to comply with the required regulations

  • Illegal payments of commissions

  • Failing to disclose your criminal record during license application or renewal

If you believe you are under BRE scrutiny due to any of the above violations, the wise step you can take is to hire an attorney to help challenge the allegations for the best desirable outcome.

How a Criminal Charge or Conviction Could Cause Revocation of Real Estate Practice License

Unfortunately, even a criminal charge could negatively affect your real estate broker license. That is particularly true if the offense is significantly relevant or related to your qualifications and duties as a licensed broker in the real estate industry.

Generally, the BRE has broad discretion on what offense is related to your responsibilities and qualifications. Examples of crimes that could attract the board's disciplinary action include:

  • Domestic violence

  • Driving under the influence

  • Sexual battery

  • Grand theft or petty theft

  • Robbery

  • Murder

  • Manslaughter

It is important to note that if your violation involves a criminal offense, the prosecutor could file charges against you. That means you should expect legal penalties, including incarceration upon a conviction, in addition to the BRE's disciplinary action. However, with the legal assistance of a seasoned attorney, you could avoid these penalties or secure a lighter penalty.

Frequently Asked Questions (FAQs) About the BREs Disciplinary Process

Below are common FAQs that many licensed real estate experts and people planning to secure a real estate license often ask about the BRE’s disciplinary process:

  1. Why Was My Application for a Real Estate Broker License Denied?

The DRE has discretion on who qualifies to secure a real estate license and who does not. Generally, the BRE is more likely to deny your application for a real estate license if you have an expunged conviction on your record.

If you have a criminal conviction for a crime that is related to the qualifications and responsibilities of a real estate broker, securing an expungement under PC 1203.4 would be wise before you apply for a real estate broker license. Incomplete applications could also be another reason the DRE denied your application. The rule of thumb is to know why the BRE has denied your license application and file a reapplication.

  1. What are My Options When the BRE’s Investigator Contacts Me Regarding an Alleged Complaint or Violation?

While being contacted by the BREs investigator can have you worried about what could go wrong, you have options. The best step to take when that happens is to contact a reliable attorney for legal counsel and representation on the matter. With the legal assistance of a seasoned attorney, you can secure the dismissal of the case or an alternative settlement deal before the administrative hearing.

  1. Should I Reveal a Conviction When Applying for a Renewal of My Real Estate License?

Yes, the BRE requires every licensee to disclose any criminal charge or conviction they have acquired during the renewal of his/her practice license. Failure to do so could attract disciplinary actions.

  1. How Do I Settle My Attorney's Fee?

While it will depend on the attorney you choose, most of them will accept payment through any of the following means:

  • Debit card

  • Bankers check

  • Credit card

  • Cash

  • Money order

  • Paypal

Find a Credible License Defense Attorney Near Me

The BRE disciplinary actions could significantly affect your career and livelihood as a licensed real estate broker. If you are facing a possible suspension or revocation of your real estate broker license, contacting a seasoned attorney would help.

We invite you to call our reliable attorneys at Sacramento License Attorney at 279-242-4711 if you believe you are under scrutiny by the BRE or the board has launched an investigation against you. Our skilled attorneys will investigate your case to know the best defense arguments to help you secure a favorable outcome.