Maine real estate professionals are dedicated to a fast-paced business, juggling property showings, negotiating with clients, and fielding inquiries from a steady stream of prospective buyers and sellers. While business is brisk, one's personal and professional reputation is at risk the moment the Maine Real Estate Commission (MREC) sends a notice of pending disciplinary action for an alleged violation. Any complaint lodged against you threatens the license that underpins your livelihood.
Although allegations may overshadow successful closings in the past, there are procedures that afford licensees the chance to defend themselves. But the path to a robust defense starts with being proactive and seeking the right support—even before a notice ever reaches you.
The Lento Law Firm Professional License Defense is prepared to be your partner in protecting your ability to conduct real estate business in Maine. Even though fines and written reprimands are common, suspension or revocation tools MREC can use. Whether you're managing the complaint process, disciplinary hearings, or filing appeals, we can provide the assistance needed to protect your livelihood. Call the Lento Law Firm Professional License Defense Team at 888-535-3686 now or fill out our confidential consultation form, and we will contact you.
Maine Real Estate Commission Licensees
The Maine Real Estate Commission (MREC) authorizes individuals to buy, sell, lease, or manage properties. Primarily, it oversees the licensing process for brokers and agents, setting standards to ensure that all licensed professionals meet the required educational and ethical criteria. Once issued, the Commission monitors compliance with Maine real estate regulations.
MREC also allows out-of-state real estate brokers to conduct business in Maine. Nonresidents holding a similar license in good standing are eligible for credentials, but only if they maintain an active place of business in the resident jurisdiction. However, there are some exceptions to licensing for some conducting transactions.
Individuals selling their own property or acting as power of attorney for another are exempt. Other exemptions include those conducting real estate transactions subject to the Maine Condominium Act, calling bids at an auction, and those related to timeshares.
'Designated Brokers' and 'Employees'
While MREC issues one primary license type to authorize individuals to engage in real estate activities, there are differences in what employees of companies and brokerages can do versus designated brokers.
Employees are anyone working with a business entity involved in buying, selling, listing, advertising, and other associated activities. These can include salespersons and agents who work under the supervision of a broker. Employees cannot operate independently or manage their own brokerage; instead, they conduct real estate activities—such as listing properties, showing homes, and helping clients with transactions—on behalf of the broker.
Designated brokers are licensed to operate a real estate business and oversee other employees, including unlicensed individuals. They can also work independently and take legal responsibility for transactions conducted under their brokerage.
Critically, every agency with an active license must maintain a "fixed and definite" place of business where designated brokers and employees may be "personally contacted without unreasonable delay" by customers and clients. Other locations advertised must be licensed as branch offices in connection with the designated broker.
MREC Prohibited Acts
Professional responsibility standards for real estate licensees are critical to maintaining public trust and ensuring ethical conduct. MREC addresses matters such as advertising regulations, conflicts of interest, truthfulness in dealings, and personal conduct.
Among agents, salespersons, brokers, and others involved with real estate activities and transactions, licensees have explicit fiduciary duties to clients and customers. Designated brokers and licensed real estate employees are subject to disciplinary action if they:
- Lack of trustworthiness and competency to safeguard the public interest
- Making any substantial misrepresentation by omission or commission, not including innocent misrepresentation
- Failing to act in a reasonably prudent manner to protect and promote the interests of a principal
- Having prior knowledge of a violation and not taking reasonable action to prevent it
- Offering or paying, directly or indirectly, any fee to unlicensed individuals
- Having a professional or occupational license rejected because of untrustworthiness within the previous three years or having a license suspended or revoked
- Failure to meet any professional qualification for licensure
While some real estate professionals are licensed to conduct appraisals, there are also strict regulations if they sell as brokers. They may not knowingly provide or offer an appraisal or opinion of market value on real estate in a transaction where the broker or any other licensee licensed with their agency is to receive a fee on that transaction.
Real estate professionals fall under MREC jurisdiction, but there are concurrent statutes governing advertising in the consumer rights sphere. Real estate advertising is considered deceptive under the Maine Unfair Trade Practice Act if:
- It contains a misrepresentation, omission, or practice likely to mislead consumers
- Consumers are acting "reasonably" given the circumstances
- The misrepresentation is "material" and will likely affect consumer conduct or a decision made on a product or service
Complaints of alleged violations are sent to and handled by the Commission. Yet any member of the public can lodge a complaint with Maine's Office of Professional and Occupational Regulations—even anonymously. A copy of the complaint is sent to the licensee and their designated broker, requesting a written response.
Misconduct Investigations and Consent Agreements
Commission staff investigate the allegations filed with the complaint, but they could uncover further violations. Inquiries most often include a telephone interview of the accuser (complainant) and the accused licensee (respondent). All communication between the complainant, respondent, and the Commission staff becomes part of the complaint's public information at the conclusion of the investigation.
The Commission Director receives all material evidence and witness testimony to analyze. During the investigation, both parties can also forward additional information for consideration. The Director then determines whether to dismiss the complaint or proceed with a consent agreement or a hearing.
Consent agreements are voluntary engagements enforcing disciplinary matters without a hearing or further proceedings. Licensees must admit responsibility for the alleged violations and the Director's sanctions, which could entail:
- Written reprimand
- Civil or administrative fines (not to exceed $2,000 per violation)
- Cease and desist orders
- Probation with conditions imposed, such as mandatory education or courses
- License suspension (for up to six years)
- Permanent real estate license termination
Licensees may discuss proposed consent agreements with the Director and debate modifications. If the Director and the licensee reach an agreement, it goes to the Commission members for review. They may approve or reject the agreement, in which case a hearing may be scheduled, or further investigation may occur. If the licensee rejects the consent agreement, the matter also goes to a hearing.
Adjudicatory Hearings
Hearings are conducted by the Assistant Attorney General assigned to the Commission, who is referred to as the Chairman. Licensees have the right to testify, call and question witnesses under oath, and introduce evidence. Both parties also have the right to be represented by an attorney.
During the hearing, the Chairman may place witnesses under oath, rule on motions or procedural questions, and even issue subpoenas requested by the complainant or the respondent. Unless the Chairman modifies the order of proceedings, hearings will stick to the following order:
- Complainants give an opening statement to the Commission
- Respondents offer an opening statement
- Complainants present evidence to the Commission, including witnesses
- Respondents may cross-examine the complainant's witnesses
- Respondents present their evidence in defense of the charges
- Complainants cross-examine the respondent's witnesses
- Either party may end with a closing statement at the hearing
At the close of the hearing, the Commission members deliberate and vote on whether or not a violation occurred. If they substantiate the charges, they will also determine what sanctions to impose. The matter is considered closed once the Commission's final decision is drafted and signed.
License Suspension and Revocation
When individuals have their real estate licenses suspended or stripped completely, there is a cascade of consequences. Even though a licensee cannot conduct real estate business during a suspension, certain financial obligations may continue unabated. For instance, brokerage fees or marketing costs for existing listings can still accrue unless they are canceled or transferred to an active designated broker. If the licensee leases space for a place of business or advertises heavily, they may remain liable for contractual expenses. These cumulative costs can quickly add up, compounding the financial impact of lost commissions.
For those conducting business as a nonresident, suspension or revocation are grounds for disciplinary actions in the licensee's home state. Depending upon the reason for discipline, they could also have their credentials terminated.
Moreover, disciplinary action is a matter of public record accessible through MREC's website or other professional databases. This transparency can significantly affect a licensee's standing in the community—personally and professionally. Prospective clients, brokerages, and even referral sources may be hesitant to engage with someone who has had disciplinary action taken against them. This reputational harm can persist long after the licensee has paid fines, served a suspension, or met the requirements to reinstate their license.
Maine Real Estate Discipline Appeals Process
Licensees who wish to challenge the Commission's determination and sanctions can appeal. They must petition the Superior Court within 30 days of the original decision.
The Commission compiles the "administrative record" for the Court, which includes a transcript of the hearing, evidence, testimony submitted, and any written record from Commission members during the original hearing. Critically, appeals are not a re-adjudication of the case; instead, the Court uses the Commission's role as a fact-finder to render a determination unless there is a clear lack of evidence that would affect the outcome.
Typically, petitioners submit briefs explaining why the Court should reverse or modify the sanctions imposed, such as:
- Procedural errors
- Insufficient evidence
- Errors in the application of law
- Bias or conflict of interest from Commission members
In some cases, the Court may allow or request oral arguments, during which both sides can present their positions fully. The Superior Court examines whether the Commission's factual findings are supported by "substantial evidence."
If the Court finds the Commission's conclusions incorrect, it can remand the matter for further proceedings or overturn the decision. Depending on its review, the Superior Court can uphold the original decision and sanctions, modify them, or require the Commission to conduct additional fact-finding or issue revised discipline. If the licensee or the Commission disagrees with the Superior Court's ruling, either party may seek further review with the Maine Supreme Judicial Court.
Appeals are invaluable as a means to protect your income and employment from Commission-issued penalties. Even though licensees can defend themselves before regulatory bodies or superior courts alone, it's too risky without professional legal representation.
Defend Your Maine Real Estate License with the Lento Law Firm
Maine's real estate professionals deserve and require the best guidance and representation when they face disciplinary action. Even when the Commission hands down civil fines and written reprimands, it can severely impact the authority to carry out transactions in the future. The public can view corrective action taken against an agent or broker. If clients and customers research real estate professionals in their area and come across disciplinary records, it may influence the decision to seek real estate assistance with a different company or individual.
The Lento Law Firm Professional License Defense Team stands ready to be your comprehensive defense outlet when allegations arise. No matter how minor you may think a violation is—a forgotten signature, a failed disclosure of price changes, or alleged deceptive advertising—it demands attention from legal professionals.
We leverage our extensive experience in examining and challenging violations of Maine real estate statutes and laws. Our team ensures you respond to all Commission inquiries in a timely manner and exhaust all avenues of defense and appeals. Handling MREC investigations and commission hearings, and building a robust strategy with our team promotes your best outcome. Whether you are in Augusta, Bangor, Lewiston, Portland, or elsewhere throughout the state, the Lento Law Firm Professional License Defense Team is prepared to begin your road to redemption now. Call us today at 888-535-3686 or fill out our confidential consultation form, and we will contact you.
