Real estate agents are trusted professionals who must meet high ethical standards. Agents must take any complaint about their services seriously and respond in an appropriate manner. There are many regulations that can trip up even careful agents, and any investigation by the North Carolina Real Estate Commission could result in serious repercussions.
Contact Remington & Dixon, PLLC to schedule a confidential meeting to discuss potential or pending actions. We fight on behalf of real estate agents so they can keep their license and continue to practice their profession. Below, our Charlotte professional license defense attorney looks at common situations in which agents lose their license.
How Can a Real Estate Agent Lose Their License?
Often, these cases start with a complaint from another agent or broker, but many complaints also come from buyers and sellers. Under North Carolina law, the Real Estate Commission has the power to revoke a license for:
- Making willful or negligent misrepresentations or material omissions.
- Making false promises to induce or persuade.
- Acting for more than one party without the knowledge of all parties.
- Failing to account for or remit money.
- Comingling a principal’s money with the agent’s own, or failing to use escrow properly.
- Failing to deliver to the client a detailed, accurate closing statement.
- Practicing law unauthorized.
- Committing any fraudulent or dishonest dealing.
- Being so incompetent as to endanger the public.
These are some of the main reasons that a real estate agent can lose a license. The Real Estate Commission also has the power to initiate cases against real estate agents based on information that comes their way.
We highly recommend reaching out to Remington & Dixon, PLLC to speak with an attorney if any complaint has been filed against you with the Commission. This is not the time to delay.
Can You Lose Your Real Estate License for a Criminal Conviction?
Yes, that is possible. The Real Estate Commission can suspend or revoke a license when an agent has been convicted of any crime involving:
- deceit,
- theft,
- fraud,
- pretenses,
- perjury,
- or other crime showing unfitness or moral turpitude.
These crimes are particularly offensive because they show that the agents are not honest in their dealings with other people. Any type of dishonesty undermines the public’s confidence in real estate agents, which the Commission is focused on protecting. For this reason, they can take disciplinary action, including public reprimands. The harshest sanction is license revocation. Once a real estate license is revoked, you cannot act as a real estate agent legally, and you’ll face even more headaches if you try.
What is the First Step to Take to Protect Your License?
The best first step is to quickly reach out to an experienced attorney. Ideally, the lawyer should have strong experience with defending professionals from these types of complaints. A lawyer will know what evidence is most helpful and how you should respond to any request from the Commission for information.
Before reaching out to an attorney, spend some time doing the following:
- Think back to the alleged incident. What do you remember? Your attorney is eager to hear your side of the story. Of course, there are two sides, and a lawyer will understand that the person complaining has a different version.
- Gather relevant documents and communications. Emails, contracts, and similar documents are often at the center of these types of disputes. Be sure to carefully gather everything, even something that looks potentially incriminating. Your attorney does not want to be blindsided by an email you did not share.
- Be honest. The best policy is to share your honest perspective with your lawyer. You might end up having to testify before the Commission, so your attorney needs to hear you tell your side of the story.
These steps do not guarantee you will keep your license. No lawyer can guarantee that. But they give you a fighting chance to continue practicing your profession.
Should You Defend Yourself?
No. This is one of the worst choices you can make, especially if there are complaints about engaging in the unauthorized practice of law. Real estate agents are not lawyers and probably do not understand the first thing about how to defend themselves. The Commission has lawyers on staff who will trip up an unwary real estate agent or broker.
Remember that anything you tell your attorney is confidential. That allows clients to be as honest as possible with their legal team. You will benefit from the strategic knowledge that only a lawyer can provide.
Call Our Office to Schedule a Meeting
When your livelihood is on the line, nothing is more important than obtaining the right legal help. Call Remington & Dixon, PLLC. Our firm has years of experience defending professionals, including real estate agents and brokers, from investigations and disciplinary actions. We can provide guidance about how to respond to the complaint, what to share with the Commission, and other steps. We can also represent you in any hearing and challenge the evidence presented against you. If you call our office at 704-247-7110, we can review the right steps to take.
