After obtaining a real estate brokerage license in Riverside, the California Bureau of Real Estate expects you to provide professional, safe, and competent services to real estate buyers and sellers. This includes being honest in your financial dealings with clients, adhering to the set code of conduct, fulfilling your fiduciary duty, providing all information needed for your clients to make effective decisions, and complying with all laws, especially those that substantially affect your professionalism.
If a substantiated complaint is made against you, the board can take disciplinary action against you, which could affect your license, career, and reputation. However, at Riverside License Attorney, we handle such matters to protect you from severe action by the board. We also help you reinstate suspended licenses to ensure your license remains valid and your career alive.
The Importance of Licensing for a Real Estate Broker
Licensing is a tool the government uses to regulate the quality of services sold to consumers. It ensures that licensed professionals conduct their businesses legally by adhering to specific regulations or codes. A violation puts your license at risk of suspension or revocation. Although licensing mainly protects the public, it offers some benefits to professionals, including the following:
- It gives you independence and ownership to offer your services throughout the state. You can find a job, or open your own brokerage firm, hire assistants and salespeople, and set your own profit structures.
- It increases your earning potential, since your licensing is what primarily attracts clients to you. Consumers already know that a licensed real estate broker is more dependable than an unlicensed or illegal one.
- Licensing gives you credibility and legal authority. It is your primary marketing tool to attract clients. You can be trusted to manage properties, handle trust funds, and t legally operate independently.
- A licensed real estate broker also has direct access to the Multiple Listing Service, from which you can easily find clients.
However, obtaining a license is not easy for real estate brokers in California. You must complete the required college-level courses and pass a real estate broker exam to apply for licensing. You must also have at least two years of experience as a licensed salesperson. Once you apply for licensing, the Bureau of Real Estate will determine your eligibility based on your educational qualifications, experience, and understanding of the law.
Sadly, obtaining a license does not mean that you get to keep it for life. You must prove your ability to maintain a real estate brokerage license for years. This is through dedicated professional service. If you make a mistake that puts your clients at risk of loss, the bureau can revoke or suspend your licensing, leaving you without a career and a means of livelihood.
Types of Violations That Put Your Real Estate Broker License At Risk
The Bureau of Real Estate allows the public to file complaints if they encounter an issue with a licensed real estate professional. Its primary goal is to ensure that the public receives safe, professional services at all times. Thus, when a complaint is received by the bureau and substantiated, the bureau can take action against you to protect the public and prevent further harm to real estate consumers.
However, the board does not take action on all allegations it receives. The allegation must be substantiated or valid for the bureau to take action. The bureau’s action depends on the seriousness of the matter. Here are possible complaints that can lead to an investigation and disciplinary action by the bureau:
Fraudulent Acts
This is a very common issue in the real estate industry. It happens when a real estate broker does something, or neglects to do something, for an undeserved financial gain. Fraud takes different forms. You can be accused of fraud if you fail to disclose critical facts during property disclosures or advertisements for a fraudulent gain. It could also happen if you engage in unlawful financial schemes to boost your commission. Falsifying loan documents, using inflated appraisals, and steering investors for hidden bonuses are other ways you could commit fraud in the real estate industry.
Fraud is a serious matter that can severely affect your license and livelihood. Depending on the degree of risk you put your clients at, the bureau can cancel or suspend your license.
Trust Fund Violations
If you are entrusted with a client’s trust fund, you are expected to manage it professionally and accurately, according to your client’s wishes and best interests. If you commingle your client’s funds with your own, delay or mismanage deposits, or fail to maintain accurate records, you could lose your real estate broker license. A client can also file a complaint against you if your actions result in a shortage of funds in their trust accounts.
Generally, complaints regarding trust fund violations mainly stem from the mishandling of rent, earnest money, or application fees. In addition to risking the loss of your license or revocation, you also risk a lawsuit by your client as they try to recover their damages.
Breach of Fiduciary Duty
As a real estate broker, your actions and decisions must align with your clients’ best interests. If you do anything for your personal gain or to cause your client a loss, you can be accused of breaching your fiduciary duty. Here are the main circumstances in which you can be accused of breaching your fiduciary duty:
- Acting in your personal interests rather than your clients’ best interests
- Withholding information from your client that could aid in decision-making, for example, failing to disclose the defects of a property
- Breaching your clients’ loyalty by steering them towards costlier ventures so that you can get a higher commission
- Failing to disclose that you are a dual agent in case you are representing the buyer and seller in the same real estate deal
- Violating your clients’ confidentiality by sharing sensitive information about their negotiating position
- Failing to act with diligence or care, thereby missing deadlines or critical details
Unlicensed Activity
You are in great professional violation if you offer services on an invalid real estate broker license. The license can be expired, suspended, or revoked. You also risk losing your license if you operate using a fake name or allow unlicensed people to perform duties that require specific skills or licensing. If you have unlicensed people working under you, you must adequately supervise them to ensure your clients’ best interests are served.
Advancing Fees
While a licensed real estate broker can set their own commissions and profits, they must come clean about how their services cost. If you hide some charges to gain more from your clients in the end, you risk losing your license to suspension or revocation. Also, failing to account for how you charge your upfront fee is a serious violation that puts your entire livelihood at risk.
These are just a few types of complaints that can trigger a disciplinary action by the bureau. Once the bureau receives a complaint against you and it is substantiated, it may investigate the matter before deciding on the appropriate disciplinary action. You will be notified of the investigation and the date on which you must appear before an administrative judge for a hearing. It is advisable to start preparing your defense or taking action to avoid severe consequences that could ruin your livelihood.
How a License Attorney Can Help
When the Bureau of Real Estate starts an administrative process against you, your career and reputation are usually at risk. If, after an investigation, the bureau finds incriminating evidence of your incompetence, unprofessionalism, or negligence, it will file a formal complaint against you, which can result in serious consequences against your career. It is advisable to take prompt action before filing a formal complaint. Thus, you will need the help of an experienced license attorney.
Your attorney will review the matter to advise you on possible outcomes and the best approaches to a favorable resolution. They will also develop a defense strategy to influence the outcome if the matter goes before an administrative judge at a hearing. They will defend your rights and offer the support you need as you navigate the most challenging time of your career.
Basically, here are ways your experienced license attorney can help:
Navigating Through Complex Administrative Processes
It is difficult to know what to do once you are notified of a complaint against you and a pending hearing and investigation. Whether this is the first or subsequent time you are facing an allegation, you need help understanding what to do and what to expect in every process involved. Having an attorney from the start makes the process smooth and manageable, regardless of the seriousness of the matter.
Your attorney will take immediate action by responding to the notice of investigation as soon as the board sends it to you. They will do this to meet the deadline, and also notify the bureau of your readiness to fight the allegation.
Your attorney will also review the evidence against you to advise you on your options and possible consequences. They will ensure you are informed throughout the investigation and administrative process.
If there is a chance of settling the matter before an administrative hearing, your attorney reaches out to the bureau and other parties involved to start the settlement process. If this works, the matter will be resolved without the involvement of an administrative judge. An early settlement could also result in a favorable resolution.
Brokerage License Defense
Remember that disciplinary action by the bureau can affect your license and livelihood in different ways. Even the most lenient disciplinary action, like a citation or reprimand, affects your reputation since it is publicly issued. You should take steps to protect everything related to your career, including your reputation and your license. That is why you should partner with an experienced attorney.
Your attorney’s best defense strategy will depend on the kind of disciplinary action you face. If you face a citation and fine, or a reprimand because the allegation is less serious, their defense strategy will be geared towards protecting your reputation. Remember how important your professional reputation is in attracting clients and building your career. Your attorney will fight any action by the bureau that could ruin your reputation.
License Reinstatement
One of the common disciplinary actions by the Bureau of Real Estate is license suspension. This is usually a temporary move that deprives you of your license and career for several months or a few years. You may reinstate your license once the suspension period has ended and you have met the required conditions.
For example, if you are accused of incompetence, the bureau can suspend your license for several months and allow you to reinstate it on the condition that you have acquired additional training or skills to serve better in the real estate industry.
License reinstatement is usually not a straightforward matter. You need an attorney’s help to file a successful application with the bureau for approval. You must demonstrate that you have met the terms and conditions set by the bureau and a readiness to serve your clients better, to avoid further disciplinary actions. An attorney will also help you complete the required documents for filing, increasing your chances of success.
Find Competent Real Estate Brokerage License Defense Services Near Me
A career as a professional real estate broker in Riverside is highly rewarding. You can start low and build your earning potential as you acquire more clients and build a solid reputation in the real estate industry. However, you could lose it all if a mistake or misunderstanding results in a complaint being filed against you with the Bureau of Real Estate.
At Riverside License Attorney, we know how damaging a setback like that can be to your career and livelihood. We offer skilled and experienced license defense services to protect your career, reputation, and license. We can help regardless of the seriousness of the allegation against you. Call us at 951-410-8612 to discuss our services further.
