By itself, a cease and desist order does not suspend or revoke a real estate license. However, there are steps that you must take to come into compliance and maintain your license. If you fail to follow the requirements of the cease and desist order, it may negatively impact your real estate license.
What Is a Cease and Desist Order in Real Estate?
A cease and desist order in real estate is a formal letter warning a licensee that they are engaging in prohibited conduct. The letter is an official warning from the licensing authority about the conduct along with requirements that the licensee must meet to avoid formal licensing proceedings.
What is the purpose of real estate cease and desist orders?
Real estate cease and desist orders are one way that real estate licensing authorities ensure compliance with rules of professional conduct. They can stop wrongful behavior and protect the public. Cease and desist orders are one enforcement mechanism available to govern behavior in a licensed profession.
What’s in a real estate license cease and desist order?
A real estate cease and desist order should:
- Summarize the facts that are the subject of the order
- State that the person is to stop the specified behavior
- Give an effective date for the order
- Identify the person who must comply with the order
- Notify the person of their options to contest the order
Immediate Effects on Your Real Estate Practice
A cease and desist letter does not have an immediate effect on your real estate practice. It is a directive to stop certain activities.
However, if you receive a letter, do not ignore it. A final cease and desist order is subject to enforcement. If you don’t respond to the order, you most certainly will face formal consequences that may impact your ability to practice. You will likely need to modify your behavior or successfully challenge the order to avoid more serious proceedings. Sometimes, the requirements of the cease and desist are a significant imposition.
If you receive a cease and desist real estate order, there may be an ongoing investigation. In addition, a notice of summary suspension may accompany the order. A summary suspension is an order to stop engaging in licensed activities until the issue is resolved.
When is a cease and desist order effective in real estate?
A cease and desist order is effective in real estate on the date stated in the letter. It may be effective immediately or on a specified date in the future.
Potential Legal Consequences of Ignoring a Cease and Desist Order
A real estate license cease and desist order is a public record. It can impact your standing in the profession and your ability to find and retain clients. In addition, if you fail to stop the conduct that is the subject of the order, you may be subject to license discipline.
Cease and desist orders are used in real estate licensing in many states, but there may be some state variations in the process, for example, in the time limits to ask for a hearing. Don’t wait to get legal help. Missing a deadline may mean compromising your ability to challenge the order.
Can You Challenge a Cease and Desist Order?
Yes, you can challenge a cease and desist order in real estate. You must request a hearing.
After a hearing, the order may be upheld and become final. You may have legal representation at your hearing and respond to the cease and desist order.
It may be appropriate to challenge a cease and desist order, but there may be other ways to address it. What’s best depends on your situation.
Can you have a cease and desist order for real estate lifted?
Yes. You may comply with the terms of the cease and desist order. It may be possible to have the order lifted, vacated, or resolved.
An important reason to have the assistance of legal counsel is to effectively pursue termination of the cease and desist order. They can guide you, advocate for your cause, and represent you in proceedings.
How a Cease and Desist Order Could Lead to a License Investigation
Cease and desist orders are not issued casually. If you receive one, take it seriously. Work with an attorney to determine what you can continue to do and what practices must be stopped. If authorities are not satisfied that the behavior has stopped, the order will likely lead to a license investigation.
Cease and Desist of Unauthorized Real Estate Practice
The term cease and desist may also come up in the context of unlicensed real estate activity. If a person or entity that doesn’t have a real estate license engages in conduct requiring a license, the North Carolina Real Estate Commission may issue a cease and desist. They may reach a cease and desist agreement by consent, but they may also pursue enforcement action.
Contact an Experienced Real Estate License Defense Lawyer
If you have received a cease and desist letter for real estate, contact Brandon Remington at Remington & Dixon, PLLC. Throughout his years in practice, Brandon Remington has received multiple awards — such as the Rising Star award from the Super Lawyers organization — for his dedication to client advocacy.
Talk to a lawyer and get the legal help that you need. Call 704-247-7110 or message us now.
