Defending Threats to Real Estate Professional Licenses in North Carolina

In North Carolina, the North Carolina Real Estate Commission (NCREC) is the state agency that licenses and regulates real estate brokers. The NCREC licenses real estate brokers to ensure they are qualified to advise consumers on home buying and selling. Once licensed, the Commission governs all brokers who must comply with the License Law and Commission rules.

Real estate licensees must also renew their license with the NCREC and complete continuing education to practice brokerage. The Commission's mission focuses on consumer protection, specifically, protecting the public interest in real estate brokerage transactions. Buyers, sellers, landlords, tenants, and other persons involved in real estate transactions who believe that they have been defrauded or victimized by a real estate broker's improper or incompetent acts should report their complaints to the Commission.

To become licensed, you must:

  • Complete pre-licensing education
  • Pass the licensing exam
  • Meet the Commission's other licensing requirements

Problems that Licensed Real Estate Brokers May Encounter

The NCREC can discipline real estate brokers for a variety of professional license problems, including:

  • Misrepresentation: Making false promises or omitting material facts, either intentionally or negligently
  • Dishonest dealing: Engaging in conduct that is improper, fraudulent, or dishonest
  • Breach of duty: Failing to exercise the care, skill, and diligence required of a real estate licensee
  • Fair Housing Act violations: Violating the State Fair Housing Act
  • Willful non-compliance: Knowingly choosing not to comply with real estate license law and Commission rules

The NCREC can likewise investigate complaints against real estate licensees and reprimand them, suspend, or revoke their licenses. All complaints and supporting documentation become a public record and are given to the licensee.

The NCREC also acts against unlicensed activity, including:

  • Individuals and entities that engage in real estate brokerage activity without a license
  • Licensed individuals and entities that engage in prohibited real estate brokerage conduct with unlicensed individuals and entities

If you face threats to your 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.

NCREC Investigation Process for Licensed Real Estate Brokers

The NCREC investigates licensed real estate brokers by first receiving a complaint from a consumer, reviewing the complaint, potentially initiating a correspondence investigation through letters requesting information from the broker and any witnesses, and, if sufficient evidence is found, conducting a full field investigation with interviews and document review, ultimately deciding whether to close the case or proceed to a disciplinary hearing before the Commission to sanction the broker if violations are found.

Key steps in the NCREC investigation process include:

  • Complaint Filing: A consumer submits a complaint against a licensed real estate broker to the NCREC detailing the alleged violation.
  • Initial Review: The NCREC staff reviews the complaint to determine if it falls under their jurisdiction and if there is sufficient basis for an investigation.
  • Correspondence Investigation: The NCREC may send a "Letter of Inquiry" to the broker requesting their explanation and relevant documents within a specified timeframe if information can be gathered through written communication.
  • Broker Response: The broker can provide a written response to the allegations and supporting evidence.
  • Decision Making: The NCREC staff will determine whether to close the case or proceed to a disciplinary hearing based on the findings of the investigation.
  • Disciplinary Hearing: If probable cause is established, a formal hearing is held where the broker can present their defense and witnesses.
  • Disciplinary Action: If the Commission finds the broker violating the Real Estate License Law or Commission rules, they may impose sanctions such as reprimand, license suspension, or revocation. This decision is final and can impact your career.

The NCREC must demonstrate "probable cause" to proceed with a disciplinary hearing against a broker.

Due Process for a North Carolina NCREC Investigation

The NCREC due process for real estate brokers includes the following steps:

Letter of Inquiry: If the NCREC receives a complaint, they send a Letter of Inquiry to the broker. The broker must respond within 14 days with a factual description of the incident, copies of relevant documents, and a complete answer to the letter.

Investigation: The NCREC may assign a field investigator to conduct face-to-face interviews and audits and gather information.

Hearing: If enough evidence suggests the broker violated the Real Estate License Law or Commission rules, the NCREC will order a hearing. During the hearing, the broker can present evidence and answer the charges and may be represented by an attorney.

Decision: The NCREC can act against the broker, including reprimanding them, suspending their license, revoking their license, or fining the developer of a time-share project. The broker can appeal the NCREC's decision in court.

The NCREC can suspend, revoke, reprimand, or censure any licensee who engages in dishonest, fraudulent, or improper dealing.

Consequences of an NCREC Investigation

The consequences of a North Carolina Real Estate Commission (NCREC) investigation into a real estate broker can include:

  • License action: The NCREC can reprimand, suspend, or revoke a broker's license. If your license is suspended or revoked, the NCREC will send a certified copy of the disciplinary order to the Clerk of the Superior Court.
  • Public record: All complaints and supporting documentation become public records and are given to the broker being investigated.
  • Injunctive relief:The NCREC can seek injunctive relief in Superior Court against unlicensed people or entities engaging in real estate brokerage.
  • Criminal enforcement:The NCREC can take criminal enforcement actions.

You should understand that the NCREC can investigate complaints against real estate brokers on its initiative or in response to a complaint filed by a person. The NCREC can also hold hearings on broker misconduct, issue subpoenas, and compel witnesses to testify.

What Happens If You Lose Your Professional License

If the NCREC suspends your real estate license, it means it has found that you violated the Real Estate License Law or Commission rules. The NCREC can also bar you from the industry for a set period or permanently. When the NCREC decides to revoke your professional license, the negative impacts are immediate and far-reaching. Here are a few examples of the potential fallout:

  • Immediate loss of income. License suspension/revocation removes your right to work immediately, with no expectation of severance or unemployment benefits. This can escalate into financial hardship, depending on your financial obligations.
  • Your patients/clients are stranded. Unless you have a sound referral system, the people who rely on your professional services may be suddenly left hanging, scrambling to find another broker.
  • Difficulty finding alternate work. Sometimes, you may be able to find other employment within your professional field that does not require a license—but having your license revoked certainly doesn't improve your resume or build the trust of potential employers.
  • Challenges with getting reinstated. The NCREC may require you to wait several years before applying for a reinstatement of your license. They may require you to jump through many hoops and still deny your license at the end of it. In some extreme cases, a broker's license may never be reinstated.
  • Inability to get licensed elsewhere. If you've had your license revoked in North Carolina, don't expect to get a new license in another state. Most state boards will check—and some have nationwide databases where adverse reports can be checked.
  • Lasting damage to your professional reputation. Even if your license is reinstated, board disciplinary actions become a matter of public record, weakening your credibility and possibly causing you to lose other jobs or clients.

A lot is at stake for your real estate career, even if you believe the complaint against you is unfounded. Hiring a Lento Law Firm professional license defense attorney can help you avoid these devastating consequences.

Why Hire a Lento Law Firm Professional License Defense Attorney

NCREC rules can be intricate, and an attorney can 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, a lawyer can advocate strongly to minimize the impact on your ability to practice real estate.

Our Lento Law Firm Defense Attorneys know that North Carolina's threats to real estate professional licenses are more than simple administrative matters. Our attorneys can help real estate brokers who are under investigation by the NCREC in several ways, including:

  • Responding to a Letter of Inquiry:Attorneys can help brokers respond to the Commission's Letter of Inquiry before the deadline.
  • Defending against allegations: Attorneys can help brokers defend against misconduct allegations.
  • Obtaining a favorable outcome: Attorneys aim to help brokers obtain a favorable outcome, which may be less expensive at the inquiry stage than at a formal hearing.
  • Working out a resolution: The Lento Law Firm has a good working relationship with the NCRE 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 professional license, do not try to navigate this matter 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.

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