How to Defend Your Professional Real Estate License in North Dakota

The real estate industry might not be North Dakota's most important economic activity, but it's still an important contributor to the state's growth and development. Like in all states, realtors, brokers and other real estate professionals play an important role in helping facilitate all kinds of property transactions and ensuring that the real estate market runs like a well-oiled machine. However, holding a professional real estate license in North Dakota comes with a long list of responsibilities and strict compliance requirements.

Allegations of any type of regulatory violation or misconduct of any kind can put your career, reputation and livelihood at risk. But if you're facing investigation, you don't have to face it alone. Call the Lento Law Firm today at 888-535-3686 or fill out our online form to schedule a consultation with our team.

Understanding the Authority Over Real Estate Licensing in North Dakota

In North Dakota, there are two regulatory bodies overseeing real estate professionals. First, the North Dakota Real Estate Commission, which was established in 1957 and is tasked with issuing licenses for real estate brokers, salespersons and companies, as well as foreign real estate dealers and salespersons and manufactured homes dealers, brokers and salespersons. Appraisers, meanwhile, are overseen by the North Dakota Real Estate Appraiser Qualifications and Ethics Board, which is in charge of licenses for appraisers and appraisal management companies. In conjunction, the two institutions are also in charge of enforcing the North Dakota Century Code and ensuring compliance with industry standards. That means they are the ones in charge of investigating complaints against anyone holding a license, conducting hearings, and when they deem necessary, imposing disciplinary actions for violations of real estate laws and regulations.

Key cities such as Fargo, Bismarck, Grand Forks, Minot, and Williston represent the biggest hubs for real estate activity in the state, but professionals in those areas aren't subject to stricter rules than those in smaller towns across North Dakota. Instead, the rules are standard across the board.

The North Dakota Real Estate Commission is located at 1120 College Dr Ste 204 in Bismarck, North Dakota. Meanwhile, the North Dakota Real Estate Appraiser Qualifications and Ethics Board is located at 1725 Bonn Blvd, Bismarck, North Dakota.

The North Dakota Real Estate Commission consists of 5 members, three of whom are required to be real estate brokers. Every member of the Commission is appointed by the governor for a term of 5 years. The Commissioners can serve consecutive 5-year terms, but must be reappointed to do so. Terms are staggered so that one member must be replaced every year. The makeup of the North Dakota Real Estate Appraiser Qualifications and Ethics Board is pretty much the same.

These institutions are in charge of investigating and handling matters related to real estate license violations. They also have the authority to revoke or suspend licenses, impose fines, mandate additional continuing education, or issue public reprimands for proven violations.

Types of Complaints and Violations That Can Trigger an Investigation

The types of complaints that can lead to an investigation or disciplinary action from the North Dakota Real Estate Commission and the North Dakota Real Estate Appraiser Qualifications and Ethics Board are varied, and can arise from clients, fellow real estate professionals, or even be made anonymously. Common issues include:

• Fraud or Misrepresentation: Any types of allegations of providing false information to clients or knowingly misleading them.
• Conflict of Interest: A Real estate professional acting for more than one party in a particular transaction.
• Failure to Disclose Material Defects: Failing to disclose known and important issues about the property involved in a transaction that could impact its value or the safety of the prospective buyers.
• Improper Handling of Funds: Any type of mishandling of escrow accounts or a failure to account for client funds.
• Unlicensed Activity: Taking part in any real estate transaction without the required licenses. This also includes any type of representation of membership in a professional association the licensee is not a member of, or authorizing or permitting someone else who is not licensed to act as a real estate professional.
• Ethical Violations: Breaches of the National Association of Realtors' Code of Ethics or state-specific stipulations. Conducts contemplated typically include dishonest or illegal dealing, gross negligence, incompetency, or misconduct.
• Advertising Violations: This includes misleading marketing practices, false advertisement of any kind, or fake social media promotions. The advertisements can be printed, radio, display, or of any other nature, as long as they were misleading or inaccurate in any way. This type of violation also includes having misrepresented any properties, terms, values, policies, or services of the business conducted, as well as advertising or offering a property for sale or lease without the consent of the owner or the agent.
• Failure to Meet Continuing Education Requirements: Not completing mandated education to maintain licensure in the required timeframe to do so.

A complete list of disciplinary actions can be found listed in the North Dakota Administrative Code, Section 70-01-02-01.

It's important to take into account that disciplinary actions for real estate agents, brokers, and other industry professionals in North Dakota and around the country are not limited to violations of real estate-specific regulations. Numerous unrelated legal issues, including criminal convictions, misdemeanors or felonies that reflect poorly on the individual's professional integrity can result in action by the institutions that regulate the profession in the state, including revocation of the license.

Considering all of this, it becomes especially important to take any allegation against you or someone you love seriously, as any type of violation can result in consequences that will end up jeopardizing a real estate professional's ability to practice. But you don't have to face these issues alone. The Lento Law Firm Professional License Defense Team can help if you're having issues with your real estate license in North Dakota.

The Investigation Process in North Dakota

The complaint process in North Dakota is different depending if it's before the North Dakota Real Estate Commission or the North Dakota Real Estate Appraiser Qualifications and Ethics Board. Let's examine both, because understanding the process is critical for anyone facing a complaint.

When it comes to the North Dakota Real Estate Commission, the process is as follows:

1. Complaint Filing: Complaints can be submitted by any member of the public. However, the Commission can also initiate inquiries in cases where there's no complaint from the public if, for example, the Commission becomes aware of a court decision or media attention which could indicate wrong-doing on the part of a licensee. All complaints can be resolved informally between the parties, but if they're not, the formal complaint must be filed in triplicate and include details about the alleged violation
2. Notice of Investigation: A copy of the complaint is sent to the licensee or licensees, who must file an answer on the required form within 20 days. The answer must be in written affidavit form, certified and contain a response to the allegations set out in the complaint.
3. Investigation: Once the response is filed, the Commission will turn the matter over to an Attorney-Investigator who will investigate the complaint. Investigators may request documentation, interview witnesses, and subpoena records. This phase is crucial, as the evidence gathered will either form the basis of the case or give cause for dismissal.
4. Preliminary Findings: After gathering evidence, the North Dakota Real Estate Commission determines if there's probable cause to proceed. If no violation of the laws or regulations is uncovered, the complaint is dismissed and the complainant notified in writing. If the investigation reveals that the acts of the licensee may justify disciplinary action, a formal hearing will be held on the complaint. The licensee will be informed of the hearing at least 20 days in advance.
5. Hearing Process: The case may advance to an administrative hearing, which will be conducted by the Office of Administrative Hearings (OAH). Both parties can present their arguments before a hearing officer.
• Licensees have the right to legal representation during this hearing.
• Evidence, witness testimony, and legal arguments are considered.
6. Final Decision: The North Dakota Real Estate Commission then issues a final determination. Possible outcomes include dismissal of charges, fines, license suspension, revocation, or mandatory additional training.

The process in front of the North Dakota Real Estate Appraiser Qualifications and Ethics Board is a little different. It will begin with a formal complaint, and the licensee will similarly have 20 days to respond. The process then moves to the investigation face, but once that concludes, the investigator will provide the report of their investigation to the licensee so they can provide a response to any issues raised in the report.

Following this, the Board reunites to discuss the information, at which time they might decide:

• That more information is required, including in some cases an independent review.
• The appraiser has not violated any regulations, in which case the complaint will be dismissed
• The appraiser has violated the regulations and offered a settlement.
• There are issues with the appraiser's actions, but they do not rise to the level of complaint, in which case they will offer a conditional dismissal.

If the appraiser does not accept the settlement or conditional dismissal, then the matter will proceed to an Administrative Hearing, following the same steps as any complaint in front of the North Dakota Real Estate Commission.

Consequences of Disciplinary Action

A decision by either North Dakota Real Estate Commission or the North Dakota Real Estate Appraiser Qualifications and Ethics Board to proceed with disciplinary actions can have severe consequences, potentially ending a real estate professional's career. Some of the potential disciplinary actions include:

• License Suspension: A suspension of the license means a temporary halt to practicing real estate, which can cause significant financial and reputational damage and impede your ability to continue to do the job properly.
• License Revocation: A permanent incapacitation that prevents you from ever practicing real estate in North Dakota.
• Probation: A period of close monitoring of your professional activities.
• Fines and Penalties: A monetary penalty.
• Mandated Education: Completion of additional courses to address areas of non-compliance.

How the Lento Law Firm Can Help

Facing any type of investigation or disciplinary action can be a daunting experience, but you don't have to face these challenging circumstances that put your reputation and livelihood in danger by yourself. Our legal team can assist you with your professional real estate license defense in North Dakota. We understand the North Dakota Real Estate Commission and North Dakota Real Estate Appraiser Qualifications and Ethics Board rules are dedicated to protecting your rights and career.

1. Comprehensive Case Evaluation: We will conduct an exhaustive review of the allegations and evidence against you in order to identify the strengths and weaknesses of the case against you. This will help us prepare a defense that is tailor-made for you.
2. Representation During Investigations: Responding to a notice of investigation without the proper legal counsel can lead to unintentional mistakes or admissions that may end up harming your case. We can handle all communications with the North Dakota Real Estate Commission or North Dakota Real Estate Appraiser Qualifications and Ethics Board and ensure your responses are factual and help your case.
3. Advocacy in Hearings: If your case moves to a hearing, we will make sure to represent you in a way that presents your side of the story in a clear, compelling manner—while challenging evidence and cross-examining witnesses when required.
4. Mitigation of Penalties: In cases where violations are substantiated, we can work to minimize the consequences by negotiating lesser penalties, such as additional training instead of suspension or revocation of your license.
5. Assistance with Appeals: If you're faced with an unfavorable decision, we can guide you through the appeals process. Our team has experience crafting winning appeals by identifying procedural errors, contesting evidence, and demonstrating mitigating factors to seek a favorable outcome.
6. Preventive Guidance: To help you avoid future issues, we offer consultations on compliance with North Dakota's real estate laws.

Protect Your Real Estate Career Today

A professional real estate license isn't just something to be proud of, it's the foundation of your livelihood. Don't let misunderstandings or mistakes jeopardize your career. If you are facing an investigation or the possibility of disciplinary action in North Dakota, the Lento Law Firm Professional License Defense Team can help.

Contact us today for a consultation and take the first step toward protecting your professional future. Call the Lento Law Firm today at 888-535-3686 or fill out our online form to schedule a consultation with our team.