Earning your real estate license is hard work, but can provide you with a valuable career. Once you have obtained your license, you do not want to do anything to put it at risk. If you are accused of wrongdoing, you also need to make certain you get help with real estate license defense as soon as possible.
Realtor.com provided a definitive list of 10 possible ways a real estate agent could endanger his or her license. These include:
- Co-mingling or misusing client funds. Whether you shuffle client money around, borrow from client funds, or are simply careless in your bookkeeping, failing to protect funds which aren't yours is one of the fastest ways to lose your license.
- Misrepresentation. The most common reason for lawsuits against pope with real estate licenses include nondisclosure, and especially failure to make environmental disclosures.
- Mortgage fraud. Mortgage fraud is very common, and sometimes people don't even realize what they are doing is fraud. For example, if a borrower is short of cash for a down payment and the realtor reworks the deal so the borrow is able to borrow a little extra, this could sometimes be considered mortgage fraud depending upon how the deal is structured.
- Criminal conviction: Crimes of moral turpitude can result in suspension of a license, and a felony conviction could prevent someone from getting a license in the first place.
- Failure to cooperate with investigators: Realtors who are under investigation cannot just ignore the accusations or refuse to respond to questions or requests for documents.
- Incompetence. While one mistake won't cost you your license, a pattern of incompetence can.
- Failing to supervise agents. If a real estate broker is given responsibility for supervising agents and allows those agents to work under his or her license, the actions of the agents could affect the license of the broker.
- Undisclosed dual agency: You need to remember who you are representing. If you are representing both a buyer and seller, you need to make sure you make full disclosures.
- Providing unlicensed legal advice. If you draft complex contracts or provide clients with advice on legal matters, this could be considered practicing law without a license and it could affect your real estate license.
- Failing to fulfill ongoing license requirements. You need to make sure you are in full compliance with continuing education requirements and you must make certain all licensing fees are paid.
If you find your license in jeopardy for any of these issues, or for any reason at all, you need to respond strategically and assertively with the goal of protecting your license and your career. You should contact a legal professional who has experience with real estate license defense and who can provide the assistance you need to fight for your continued right to work in your chosen career.