Pennsylvania remains a popular place for real estate agents to start and build a career, with average full-time earnings slightly higher than the national average. But whether you're in the industry full-time or it's a side gig, protecting your license is crucial.
The LLF Law Firm Professional License Defense Team works with real estate professionals dealing with license issues in Pennsylvania. If your Pennsylvania real estate license is at risk, give us a call at 888-535-3686 or complete this confidential online form.
Pennsylvania's Real Estate Licensing Authority
The State Real Estate Commission (SREC) is responsible for issuing and regulating all real estate agents in the state. The SREC oversees the following professions:
- Real estate broker
- Real estate salesperson
- Cemetery broker
- Cemetery salesperson
- Campground membership salesperson
- Time-share salesperson
- Builder-owner salesperson
- Rental listing referral agent
The main goal of the SREC is to protect constituents by ensuring all licensed professionals operate with honesty, trustworthiness, integrity, and competence. The commission also establishes and oversees continuing education requirements for licensed real estate brokers and real estate salespersons, and this continuing education is a requirement for license renewal. The board is made up of a combination of professionals and members of the public.
Getting a Real Estate License in Pennsylvania
Whether you're working in Pittsburgh, Allentown, Lancaster, or one of the many other towns across the state, your real estate license must go through the SREC, headquartered in Harrisburg. You'll apply for a license using the Pennsylvania Licensing System, which is the tool used across most departments to license professionals, including accountants and medical professionals.
To get your Pennsylvania real estate license, you'll need to complete 75 hours of approved real estate education within five years of passing the real estate exams. You'll also need to work under a supervising broker. To continue practicing, you'll need to renew every two years. The board can revoke your license at any time, but first, the commission will launch an investigation.
Real Estate License Revocation in Pennsylvania
The SREC can refuse to issue, suspend, or revoke a real estate professional's license for any of the following:
- Crimes of violence, including rape, incest, burglary, terrorism, and kidnapping.
- Theft of leased property or funds, including failing to deposit funds received
- Forgery
- Destroying, removing, or concealing recordable instruments or tampering with records or ID
- Fraud or deception in business practices
- Commercial bribery
- Criminal breach of duty to act disinterestedly
- Defrauding secured creditors
- Fraud in insolvency
- Impersonating a notary public or licensed professional
- Furnishing free insurance to lure buyers to purchase property
- Operating an unlicensed mortgage loan business
A criminal conviction in your past won't necessarily prevent you from getting a license, even if it was directly related to the practice of real estate. You should be honest and upfront in your application for licensure or renewal. The board will review the details and make a decision based on the facts presented. In some cases, the SREC will grant a license with restrictions such as probation.
Civil Penalties for Pennsylvania Real Estate Agents
In many cases, an investigation hits a real estate professional's bank account instead of his or her license. You may face small civil penalties for certain violations. These include:
- Failure to post required signage
- Practicing without a license
- Failure to post a separate entrance when meeting with clients in a personal residence
- Failure to notify the commission of change in supervising broker within ten days
- Using a different name than the name registered with SREC
This is a small sampling of the many infractions that can bring civil penalties. Typically, you'll pay a nominal fee of $125-$500 for the first offense, increasing for the second offense. A few second offenses have $1,000 fees, but most are in the $500 range.
Complaints Against Real Estate Professionals in Pennsylvania
Any resident can file a complaint on a Pennsylvania real estate agent using the PALS system. Those complaints go to the Pennsylvania Department of State (DOS), which investigates complaints for all 29 licensing boards and commissions under its jurisdiction.
The actual review of each incoming complaint is done by the Bureau of Professional and Occupational Affairs' Professional Compliance Office, which looks at thousands of complaints every year. Each complaint goes through an initial review, which focuses on whether the alleged conduct violates regulations and falls within the board's jurisdiction.
Pennsylvania Real Estate Licensee Investigations
When the board finds that a complaint merits a closer look, an investigation will be launched. Often, these investigations are handled by the department's Bureau of Enforcement and Investigation, and that department:
- Interviews witnesses
- Gathers relevant documentation to serve as evidence, including contracts and advertisements
- Turns information over to the prosecution division to review
The DOS doesn't give a fixed timeframe for investigations. The length of time for an investigation depends on the allegations and the complexity of the complaint.
Order to Show Cause
Over the course of the investigation, you may be sent an Order to Show Cause, which gives you the opportunity to tell your side of the story. You have 20 days after the day you're served the order. You'll either admit or deny the allegations listed in the order.
Your response to this order is vital to protecting your license. Failure to support your denials with specific facts could send your case straight to a Final Order, which likely won't be in your favor. This is where a skilled attorney can help. The LLF Law Firm Professional License Defense Team has experience in working with Pennsylvania real estate professionals on Orders to Show Cause and can help you craft a response that will improve your chances of a favorable outcome.
Consent Agreement and Order
If the complaint is accurate and you've committed the indiscretion, it might be worthwhile to negotiate with the DOS. This lets you agree on the penalties for the violation. Although you can suggest penalties, the board must agree on them before they go through.
This process is done through something called a Consent Agreement and Order, which is a legally binding court document. The negotiations happen between you and the licensing agency, but the court signs off on it. You might agree to pay fines or complete additional education, for instance.
Right to a Hearing
If the investigation finds that a violation has occurred, you'll have the right to a hearing to discuss the matter. Pennsylvania appoints hearing examiners, who are in charge of scheduling and overseeing the proceedings.
During your hearing, you'll have the chance to present your side of the story, along with any supporting documentation you can provide. Your attorney can help you gather this documentation and prepare for your case, but in the end, the more evidence you can provide of your innocence, the better.
The Board's Final Decision
Within 180 days of your hearing date, the board will make a decision and provide the information to the SREC, which will follow through on the decision. For a new applicant or a renewal request, this may mean denying your request, leaving you without a license. For existing licensees, though, the consequences for your license can be:
- Temporary suspension
- Revocation
- Civil penalties
- Education courses
- Public reprimand
- Probation
With a temporary suspension, the board will meet within 30 days to discuss whether there is enough evidence to support the suspension. You and your attorney have the right to be present at this hearing, where you can cross-examine witnesses, inspect physical evidence, offer evidence and testimony, and take notes during the proceedings.
At the end of the hearing, if the board decides there's insufficient evidence to support the suspension, your license will be restored. If the temporary suspension remains, it will be lifted when the board vacates it, or at the end of 180 days, whichever comes first.
Consequences of Disciplinary Action
Losing your license can have a direct impact on your career. You'll no longer be able to practice real estate in Pennsylvania, and your record can follow you if you decide to move to another state.
But even if you keep your license, disciplinary action comes with a cost. The Commonwealth of Pennsylvania publishes disciplinary actions for all 29 licensing boards, including the SREC. The listing includes your name, license number, city, county, and the reason for the disciplinary action. As potential clients research you, this type of public documentation of your disciplinary history could cost you business.
The process of being under investigation itself comes with stress and financial costs. You'll need to travel to Harrisburg for hearings, and the process will distract you from your daily duties. All of this can affect your annual income.
Appealing License Decisions in Pennsylvania
Pennsylvania residents have the right to appeal board decisions, starting with the denial of your application for a license. If your application is denied, you'll be notified by mail, and that notification will include the reason for the denial and directions for mounting an appeal. You'll then be given a hearing date.
When you appeal a board decision, you'll meet with a hearing examiner, who will prepare a report once the hearing is complete. At this hearing, you'll have the opportunity to:
- State your case
- Show evidence of rehabilitation
- Negotiate to mitigate consequences
- Provide character references
Keep in mind that any information you provide at this appeal hearing will become part of your file. The board will review this information and make the final decision.
How We Can Help
The LLF Law Firm Professional License Defense Team has experience with real estate licensing in Pennsylvania. We're familiar with board processes and can help you from the initial investigation through the appeals process.
We can help you with the following:
- Early intervention: During the investigation, you'll receive an Order to Show Cause, and your response to this order can make a big difference. We'll work with you from the start to ensure all communications with the Department of State are professional and thorough.
- Investigation guidance: Knowing an investigation is happening can be unsettling. Our team guides you through each step of the process, helping you know what to expect and craft responses.
- Hearing preparation: When it's time to appear in front of the board or hearing examiner, what you say can make a difference. Our team will help you gather documentation and prepare a statement that will work in your favor.
- Mediation: When discipline seems unavoidable, we can help you craft an offer that will minimize the long-term impact on your career.
- Appeals: Whether you've worked with us from the beginning or you contacted us after an unfavorable decision, we can help with appeals. This includes gathering documentation and helping you craft the statement you'll make at the hearing.
Areas We Serve
The LLF Law Firm Professional License Defense Team works with real estate professionals in Pennsylvania's largest metros as well as its many small towns. Our areas served include:
- Philadelphia: As the largest metro area in Pennsylvania, Philadelphia is a competitive market, loaded with real estate professionals.
- Pittsburgh: Another hot market is Pittsburgh, which has a combination of residential and commercial real estate agents.
- Allentown: This thriving metropolis is home to several hot neighborhoods, including the popular Lehigh Valley market.
- Scranton: This northeastern town has plenty to offer its residents, so it should be no surprise that it's one of the hottest real estate markets in the state.
- Erie: Real estate agents set their sights on this town for its lakefront homes and outdoor activities, all of which make it a hot spot.
- Harrisburg: Another hot real estate market is the state capital, which draws homebuyers with its great schools and family-friendly activities.
The LLF Law Firm Professional License Defense Team
From Pittsburgh to Scranton, Pennsylvania is a great place to live, work, and play. But being a licensed real estate agent in the state comes with responsibilities. It's important to operate with honesty and integrity to protect your license. When accusations do come your way, though, the LLF Law Firm Professional License Defense Team can help. Contact us at 888-535-3686 or provide some details about your situation using our online form and we'll be in touch.
