The New Jersey Real Estate Commission (REC) is the government body that licenses and regulates real estate brokers in New Jersey. It is the New Jersey Department of Banking and Insurance division that enforces the state's real estate licensing law. The REC issues licenses to real estate brokers and salespersons, real estate schools, and course instructors, and the Commission establishes standards of practice for the real estate brokerage profession:
- Licensing. The REC issues licenses to real estate brokers, salespersons, and schools. Applicants must meet educational requirements and pass an exam.
- Regulation. The REC enforces the real estate licensing law, sets standards of practice, and regulates out-of-state sales.
- Disciplinary actions. The REC investigates and adjudicates disciplinary actions against licensees.
- Guaranty Fund. The REC administers the Real Estate Guaranty Fund.
Problems that Licensed New Jersey Real Estate Professionals May Face
Licensed real estate professionals in New Jersey may face several problems, including:
- Disciplinary action. The REC can take disciplinary action against real estate professionals for a variety of reasons, including:
- Failing to disclose licensee status in a sales contract
- Failing to disclose ownership interest in a property
- Paying an unlicensed person a commission
- Being convicted of a crime
- Fraud or dishonest dealing
- Sanctions. If a complaint is filed against a real estate professional, the REC may impose sanctions such as a fine or license suspension.
- Unethical behavior. Real estate professionals may engage in unethical behavior, such as:
- Dual agency without disclosure
- Misrepresenting or concealing property flaws
- Manipulating property photos or descriptions
- High-pressure sales tactics
- Failing to present all offers
- Discrimination in property transactions
If you face threats to your New Jersey professional real estate license, do not try to navigate this situation alone. Talk to an experienced Lento Law Firm professional license defense attorney who can offer wise counsel, such as advising you on how to respond to the REC's investigation, and help you quickly prepare an effective strategy, such as gathering evidence to support your case. Contact our Professional License Defense Team at the Lento Law Firm online or by calling 888 535-3686.
How Identity Theft Could Affect Your Professional Real Estate License
As a licensed New Jersey real estate professional, you are a potential target for identity thieves. They have many methods for stealing your identifying information, including credit card numbers, addresses, and Social Security Numbers. If your identity is stolen, you may be concerned about how this incident could impact your professional license. Could your license be at risk because your identity was stolen?
Identity theft happens when a thief steals your personal information without your knowledge to commit fraud or theft. Knowing how to guard your personal information is your first defense against identity theft. Identity theft is often a silent crime. Experienced identity thieves may use your information for months—even years—while you remain unaware.
Identity theft can indirectly affect a real estate license in New Jersey through a criminal record generated in the thief's name:
- Fake ID: If a thief uses your identity to create a fake ID and is arrested, the criminal record will appear on your background check when you apply for your license.
- Law enforcement investigation: If law enforcement reports the conviction to your licensing board, they may investigate and suspend or revoke your license.
Identity theft can also affect real estate agents in other ways, including:
- Fake listings: Fraudsters may use your name, photograph, and listings to attract buyers or contact prospects. They may also attach your name and image to a fake listing for a property not for sale.
- License and name used fraudulently: Scammers may use your name and license number on their websites to fraudulently sell real estate. You can search for your name and license number to see if they're being used without your permission.
Identity theft could affect a real estate license in New Jersey in several ways, including:
- License revocation. The REC can revoke a license if a licensee is convicted of certain offenses, including theft.
- License suspension. The Commission can suspend a license if a licensee is indicted for certain crimes, including theft.
- Expungement. A real estate licensee convicted of a crime involving moral turpitude may be able to earn their license again through an expungement.
Real estate agents can protect themselves from identity theft by:
- Actively searching for credentials. Searching for their name and license number to see if they are being used without their permission.
- Being aware of red flags. Real estate agents who use credit reports as part of their business must comply with identity theft "red flag" requirements. They may be considered " creditors” if they regularly arrange for credit to be extended, such as by pulling credit reports, suggesting lenders, or helping with loan applications.
New Jersey Investigation Process for Licensed Real Estate Professionals
The REC investigates complaints against real estate agents through a process that includes:
- Complaint: A formal complaint is filed with the board. If the agent is a member of NJ Realtors, the complaint can be filed with the agent's local board or association.
- Investigation: An investigator is assigned to the case and contacts all parties. The investigation can take a few weeks to several months.
- Informal hearing: The board may invite the agent to participate in an informal hearing.
- Formal hearing: The board makes a final decision on disciplinary action.
- Sanctions: If the board finds evidence, the agent may face sanctions such as a fine, license suspension, or revocation.
- Notification: The complainant is notified when the process is complete.
The REC can take testimony and subpoena witnesses, and it is required to produce relevant material.
Some acts that may constitute a violation of the licensing act include:
- Making false promises or misrepresentations
- Acting for more than one party in a transaction without the knowledge of all parties
Due Process for a New Jersey Real Estate Investigation
Due process is a fundamental right that guarantees basic fairness in investigations:
- Notice: Interested parties must be notified of the investigation, and the notice must be sufficient to allow them to understand what is being proposed and how to prevent the loss of their interest.
- Hearing: Individuals must be allowed to be heard before being deprived of a property interest.
- Impartial tribunal: The decision must be made by an impartial decision-maker.
Consequences of a New Jersey Real Estate Investigation
A New Jersey real estate professional can face several consequences if they are the subject of an investigation, including:
- License suspension or revocation: The REC can suspend or revoke a real estate professional's license for a variety of reasons, including:
- Misrepresentation: Misrepresentation, embellishment, or omissions can lead to license suspension or revocation.
- Criminal convictions: A criminal conviction can prevent a real estate professional from getting a license or lead to suspension or revocation.
- Lack of good character: The REC can revoke or suspend a license for conduct that demonstrates a lack of good character.
- Fines: The REC can impose a fine of up to $10,000 for violations.
- Probation: The REC can place you on probation.
- Mandatory courses: The REC can require you to complete a course on agency and ethics.
- Continuing education: The REC can require you to complete a certain amount of continuing education.
The REC investigates complaints by assigning them to an investigator who contacts the parties involved and gathers documentation. The investigation can take a few weeks to several months. The matter will be closed if there is insufficient evidence, and the complainant will be notified.
What Happens If You Lose Your New Jersey Professional Real Estate License?
If you lose your New Jersey real estate license due to an investigation, you can:
- Hire a lawyer. An experienced Lento Law Firm professional license defense attorney can help you navigate the process, identify relevant documents, and defend you against the complaint.
- Fill out a petition application. You'll need to pay a fee, provide documentation, and undergo an investigation.
- Cooperate with the investigation; If you've done nothing wrong, you should have nothing to hide. If so, be upfront with investigators.
- Prepare for an appeal. If your license is suspended or revoked, you can appeal the decision. A good Lento Law Firm attorney can help you determine the best grounds for appealing, prepare a written brief, and represent you at oral arguments.
A real estate license can be revoked for various reasons, such as misconduct, violating ethical standards, and failing to meet the requirements set by the licensing authority. A lack of disclosure is the most common offense that leads to lawsuits against licensees.
Why Hire a Lento Law Firm Professional License Defense Attorney
New Jersey REC rules can be intricate, and an attorney must interpret them accurately to identify potential defenses and legal strategies. A Lento Law Firm professional license defense attorney with experience in real estate licensing matters can efficiently navigate the formal complaint process, including hearings and appeals. If the complaint involves potential license suspension or revocation, our attorneys can advocate strongly to minimize the impact on your ability to practice real estate.
Our Lento Law Firm Defense Attorneys know New Jersey's threats to real estate professional licenses are more than just administrative matters. Our attorneys help real estate brokers who are under investigation by The REC by:
- Responding to a complaint:Attorneys can help brokers respond to a complaint before the deadline.
- Defending against allegations: Attorneys can help brokers defend against misconduct allegations.
- Obtaining a favorable outcome: Attorneys can aim to help brokers obtain a favorable outcome, which may be less costly at the inquiry stage than at a formal hearing.
- Working out a resolution: The Lento Law Firm has a good working relationship with The REC and can often work out a resolution without a formal hearing. Brokers can discuss their situation with a Lento Law Firm professional license defense attorney to decide whether to obtain legal representation.
Our Lento Law Firm Professional License Defense Team Can Help You
If you face threats to your New Jersey professional real estate license, do not try to navigate this situation alone. Talk to an experienced Lento Law Firm professional license defense attorney who can offer wise counsel and help you quickly prepare an effective strategy. Contact our Professional License Defense Team at the Lento Law Firm online or by calling 888 535-3686.
