According to the New Mexico Real Estate Commission, the real estate industry is one of the largest components of that state's economy. So, it's no surprise that New Mexico takes great care to ensure public confidence in real estate professionals.
If you learn that the New Mexico Real Estate Commission or the New Mexico Real Estate Appraiser Board has initiated disciplinary proceedings against you, you must contact the Lento Law Firm. Our Professional License Defense Team has experience assisting real estate professionals across the state, from Santa Fe to Albuquerque to Las Cruces. Schedule a consultation using the online contact form or by calling 888-535-3686.
New Mexico's Real Estate Licensing Authority
New Mexico's Real Estate Commission is the primary enforcement authority for real estate brokers. It's tasked with imposing discipline on real estate brokers who violate one or more of New Mexico's Real Estate License statutes or Real Estate Commission rules. The Real Estate Appraiser Board has goals similar to those of the Real Estate Commission, but it works with appraisers and appraisal companies and enforces its own statutes and rules that apply to appraisers.
Both organizations also oversee the licensing process and administer the continuing education requirements for their respective real estate professionals.
Prohibited Conduct for New Mexico Real Estate Brokers
Real estate brokers could find themselves facing disciplinary proceedings if they engage in conduct that amounts to dishonesty, whether in representing a part of their practice or in the handling of money. Below are some of the more common prohibitions that real estate brokers could potentially run afoul of during the course of their duties:
- Making any substantial misrepresentation.
- Practicing as a real estate broker without a license from the Real Estate Commission.
- Obtaining a real estate license using fraudulent or false representations.
- Making false promises, whether through themselves, others, or with advertising.
- Using the insignia or trade name of a real estate organization for which the real estate professional is not a member.
- Receiving or providing some form of compensation to or from an unlicensed individual, except in cases involving the real estate professional's principal and only with the principal's written consent.
- Representing or trying to represent a qualifying broker that the real estate professional has an association with but lacks their consent.
- Failing to keep funds separate so that money belonging to one person doesn't become commingled with the funds of another. This includes not keeping other people's funds in the appropriate escrow or trustee accounts and not accounting for all money coming into the real estate professional's possession that doesn't belong to them.
- Not providing legible copies of all real estate sales contracts and listing documents to all relevant parties during execution.
- Being convicted of a crime of moral turpitude by another court of competent jurisdiction.
- Hiring a worker who performs any of the acts reserved for licensed real estate brokers but that worker lacks such credentials.
- Do not place deposited or purchased money into the appropriate custodial, trust, or escrow account after obtaining signatures from all relevant parties to a transaction.
- Not creating or maintaining sufficient records relating to the debits, credits, and maintenance of required custodial, trust, or escrow accounts.
- Engaging in any conduct associated with the practice of a real estate broker that demonstrates incompetency, bad faith, untrustworthiness, fraud, dishonesty, impropriety, negligence, or any other unlawful behavior.
- Being subject to any disciplinary action in any other domestic or international jurisdiction where the real estate broker is licensed to practice.
- Violating any other New Mexico real estate rule or statute.
Prohibited Conduct for NM Real Estate Appraisers
There are a variety of unlawful behaviors and acts that could land real estate appraisers into trouble with the Real Estate Appraiser Board. Some of these include:
- Engaging in the practice of appraising, or advertising as such, without an appraiser license issued by the Real Estate Appraiser Board.
- Using any title, designation, or abbreviation that's associated with a state-certified appraiser without having earned that credential.
- Using the term “state certified” to describe any real estate appraisal.
- Using any title, designation, or abbreviation that implies association or certification with or by a real estate appraiser firm, partnership, or other organization.
- Allowing a real estate appraiser trainee to appraise a property that the supervising appraiser isn't qualified to appraise.
- If possessing only trainee status, appraising property without proper supervision from an appraiser who possesses the appropriate residential or general certificate.
- Completing any appraisal-related practice that falls outside the appraiser's qualifications.
- Failing to comply with the USPAP.
- Obtaining or attempting to obtain an appraisal license, registration, or certificate by knowingly making false statements, submitting false information, or using any form of fraud or misrepresentation.
- Refusing to provide complete information when applying for an initial license, certification, or registration.
- Making a payment to the Real Estate Appraiser Board (other than a fee required by law) to obtain a license, registration, or certificate.
- Being convicted of a crime that's connected to any qualification, duty, or function of real estate appraisers.
- Committing any act of dishonesty, misrepresentation, fraud, or omission made with the intent to personally benefit from that wrongful act or substantially harm another person with that wrongful act.
- Intentionally violating or ignoring any provision of the applicable real estate appraiser statutes or rules.
- Accepting an appraisal assignment where payment is contingent on the appraiser reaching a predetermined valuation of the property.
- Being subject to a final judgment in a civil matter involving deceit, fraud, or misrepresentation involving an appraisal.
- Committing any act during the course of professional duties that constitutes bad faith, fraud, untrustworthiness, dishonesty, or impropriety.
- Repeatedly failed to exercise reasonable diligence when preparing or communicating an appraisal report.
- Breaching any confidentiality duties relating to appraisal practice.
- Using any false, misleading, or fraudulent advertising practices.
- Impersonating another licensed appraiser.
- Helping someone else impersonate a licensed appraiser.
- Using fraud, dishonesty, or misrepresentation to obtain an appraisal fee.
- Falsifying any real estate appraisal records.
Real Estate Professionals Disciplinary Process in New Mexico
Many disciplinary proceedings are the result of someone submitting a complaint to the New Mexico Regulation and Licensing Department. A complaint can be submitted online and requires the complainant to provide their first and last name, along with their email address. In addition to the facts outlining the alleged misconduct, the complainant may also provide a list of witnesses to the allegations and documents in support of the claims being made. In some cases, the Real Estate Commission may file its own complaint against the real estate professional.
The complaint, investigation, and disciplinary processes are similar for both real estate brokers and appraisers in New Mexico. They both begin with the Real Estate Commission or Appraiser Board receiving a copy of the complaint and deciding if they have jurisdiction over the matter. This includes confirming if the complaint involves a real estate professional they oversee and relates to one or more New Mexico real estate statutes, regulations, or other applicable standards (such as the Uniform Standards of Professional Appraisal Practice or USPAP).
The Disciplinary Process for Real Estate Brokers
In cases involving real estate brokers where jurisdiction exists, the New Mexico Real Estate Commission will begin its investigation. One of the first things they do is send a copy of the complaint to the real estate broker and provide them with 10 working days to respond to the allegations and submit evidence in their defense. Not responding within this time frame doesn't automatically result in a finding of responsibility, but the real estate broker will have waived their right to respond during the investigation process.
After completing the investigation, two outcomes are possible. First, the Real Estate Commission finds that the complaint doesn't involve the violation of a real estate statute or rule. In this situation, the complaint will be dismissed, and the complainant and real estate broker will be notified. Note that if the complainant withdraws their complaint, the Real Estate Commission isn't legally required to dismiss the complaint.
Second, there's a finding that the complaint involves a violation of a real estate statute or rule. In this case, the Real Estate Commission has the option of referring the complaint to the attorney general's office and requesting a notice of contemplated action, or NCA. In some cases, the Real Estate Commission will offer the accused real estate broker a pre-NCA settlement offer, which gets sent before the case goes to the attorney general's office.
In the vast majority of cases resulting in an NCA, the real estate broker will be entitled to a hearing. In these situations, the Real Estate Commission must provide notice to the real estate broker which provides information relating to the allegations, potential sanctions, and the real estate broker's rights during the hearing, such as:
- The names and addresses of potential witnesses.
- The right to be represented by counsel.
- The ability to request subpoenas to compel the presence of witnesses or the production of documents.
- The right to examine all opposing witnesses and documents the other side intends to use at the hearing.
- The right to take depositions.
After the hearing, the Real Estate Commission must issue a decision as soon as practicable. Within 15 days of reaching a decision, the Real Estate Commission must serve each party a copy of the decision. If the real estate broker disagrees with the decision, they can appeal it by asking for a district court to review the decision.
The Disciplinary Process for Real Estate Appraisers
Assuming the Mexico Real Estate Appraiser Board has jurisdiction, they then decide if the complaint provides enough information to determine if there was a violation of a relevant New Mexico statute, rule, or USPAP. If the answer is yes, the Real Estate Appraiser Board may do one of three things:
- Conduct further investigation;
- Refer the matter to a complaint committee; or
- Dismiss the complaint for lack of information, lack of jurisdiction, or because it's frivolous.
Regardless of what the Real Estate Appraiser Board decides to do, they will forward a copy of the complaint to the real estate appraiser to provide them an opportunity to respond to the allegations. The appraiser has 10 business days to provide this response.
If, after a committee review or further investigation, the Real Estate Appraiser Board decides to pursue discipline against the real estate appraiser, then they will follow a process similar to the one that applies to real estate brokers.
The Real Estate Appraiser Board can request an NCA after sending the matter to the attorney general's office. If an NCA is issued, then the real estate appraiser will be entitled to a hearing with the same rights and privileges as the real estate broker, including the right to appeal an adverse ruling to the district court.
Possible Sanctions for New Mexico Real Estate Professionals
If the Real Estate Appraiser Board or Commission finds that a real estate professional's conduct warrants discipline, the following sanctions are possible:
- License suspension
- License revocation
- Limitation or condition placed on the license
- Requirement to complete one or more continuing education classes
- Issuance of a public letter of reprimand
- An administrative fine
Real estate appraisers and brokers are also subject to potential criminal charges in addition to civil sanctions.
One thing to note is that while most of the above punishments entitle the real estate broker or appraiser to a hearing, the parties are encouraged to settle the matter at any time during the disciplinary process. This can potentially provide the real estate professional with a more lenient sanction and reduce the uncertainty of a disciplinary proceeding.
NM Real Estate License Defense Assistance
The disciplinary process for real estate brokers and appraisers can be an unsettling experience. This is understandable as the process can be complicated with so much on the line. Even if you did nothing wrong, saying or doing the wrong thing to the New Mexico Real Estate Commission or Appraiser Board could risk your livelihood. Therefore, the moment you learn about a potential disciplinary action against you, contact the Professional License Defense Team from the Lento Law Firm. We'll provide clarity during this confusing time and help you achieve the best possible outcome in this unfortunate situation. Schedule a consultation by calling 888-535-3686 or using our online contact form.
