Across the country, real estate is the foundation of home ownership, business development, and investment portfolios. Real estate brokers and salespersons make a living as experts in finding the home, retail, office, industrial, or warehouse space that their clients need.
In Nebraska's larger cities, such as Omaha or Lincoln, and its smaller communities including Bellevue, Grand Island, Kearney, Fremont and Norfolk, real estate professionals are working hard to complete a first-time home buyer's purchase or to expand a sophisticated investor's portfolio. With financial acumen and an astute appreciation for client needs, real estate brokers and salespersons make deals and get things done.
For these professionals, it can be devastating to learn that a complaint against them has been filed with the state licensing authority. No one expects to have to defend themselves against a misconduct complaint and navigate a complex, adversarial disciplinary investigation or hearing. With your real estate license and career at stake, you don't have to do it alone.
At the Lento Law Firm, we help real estate professionals protect their real estate licenses in Nebraska. Our experienced Professional License Defense Team can partner with you to challenge any complaint filed against you. Call our offices today at 888-535-3686 or contact us online to set up a consultation and discuss your case.
Licensing for Real Estate Professionals in Nebraska
Nebraska Real Estate Commission (NREC) licenses and regulates real estate professionals in Nebraska under the authority of the Nebraska Real Estate License Act and associated regulations. The NREC is composed of seven members including the secretary of state and six other members, appointed by the governor, who are active and licensed real estate brokers.
The NREC issues two types of professional licenses:
Salesperson's License
A salesperson's license authorizes the licensee to engage in the real estate business, as long as they are employed and under the supervision of a licensed broker.
Broker's License
A broker's license allows the licensee to work in real estate either independently as a self-employed broker or as an associate broker employed by and under the direct supervision of a licensed broker.
In Nebraska, to become a licensed real estate broker or salesperson, an applicant must:
- Be a high school graduate, possess a certificate of equivalency, or have evidence from the Department of Education of your participation or enrollment in a home school program.
- Complete and submit proof of obtaining requisite pre-license education. Applicants for the salesperson license examination must have completed 60 class hours of NREC-approved courses and six hours related to professional practice and standards.
- Applicants for the broker's license examination must have worked as a licensed salesperson or broker for two years, completed 60 class hours of NREC-approved courses in addition to the courses required to earn their salesperson license, and completed a six-hour professional standards course.
- Attest that they are a U.S. citizen or qualified alien under the federal Immigration and Nationality Act. Non-U.S. citizens shall have their employment authorization verified through the Systematic Alien Verification for Entitlements Program operated by the U.S. Department of Homeland Security.
- Provide a passport-style photograph.
- Complete and submit an application form, along with the required application and examination fees.
After an applicant submits their application, the NREC reviews for eligibility. Once the applicant receives notice of their eligibility to sit for the salesperson's or broker's examination, they schedule an appointment to take the examination.
Applicants who pass their examination must take an additional 12 hours of post-license education within 180 days of their licensure.
It is a professional achievement to become a licensed salesperson or broker. Any threat to a real estate professional's license is a threat to their career and must be managed proactively with great care.
Misconduct in Nebraska
The NREC has the authority to investigate, on its own motion or after receiving a complaint, a real estate professional if their license was obtained by false or fraudulent representation or for engaging in unfair trade practices. The types of misconduct that are prohibited often involve failing to make required disclosures, failing to properly manage money or trust accounts, making misrepresentations, engaging in self-dealing, violating the law, acting without authorization or in contravention of known contractual obligations, and may include:
Failing to Disclose
- Acting for more than one party in a transaction without the knowledge of all parties for whom they are acting.
- Acting as both the agent and undisclosed principal in any transaction.
Violating Law or Regulation
- Failing to show, sell, or rent any real estate for sale or rent to prospective purchasers or renters based on religion, race, color, national origin, ethnic group, sex, familial status, or disability.
- Being convicted of a felony or entering a plea of guilty or nolo contendere to a felony charge.
Making Misrepresentations
- Making any substantial misrepresentations.
- Intentionally misrepresenting any property, terms, values, policies, or services in advertising.
Failing to Manage Money or Trust Accounts
- Failing to account for money that is in their possession but belongs to others.
- Failing to properly maintain and deposit money into a trust account.
- Receiving or charging undisclosed compensation, consideration, rebate, or direct profit on expenditures made for a principal.
Acting Without Authorization or in Contravention of Existing Contracts
- Offering real estate for sale or lease without the knowledge and consent of the owner or their authorized agent or on terms other than those authorized by the owners or their authorized agent.
- Negotiating a transaction with an owner or lessor with the knowledge that they have a written outstanding listing contract that grants another broker the exclusive right to sell or lease the property.
A licensee may also face a complaint for demonstrating negligence, incompetency, or unworthiness to act as a broker, associate broker, or salesperson.
Real estate professionals must take steps to challenge any complaint made against them. If you are accused of misconduct, let the Lento Law Firm and its experienced professional defense attorneys help. Together, we can create a defense strategy to protect your license, your career, and your livelihood.
The NREC Investigative and Hearing Process
The NREC is responsible for investigating complaints against real estate professionals and has developed a disciplinary process to adjudicate professional misconduct allegations.
Complaint
After receiving a complaint, the NREC sends a copy of the complaint to each licensee involved. The accused licensee must file an answer to the allegations within 20 days of receiving the complaint.
Investigation
Once the answer is received, the Deputy Director for Enforcement investigates the allegations. As part of the inquiry, the Deputy Director can contact the complainant, the accused licensee, or any other witnesses.
Then, the Deputy Director prepares and presents an investigative report to NREC. The members of the NREC determine whether or not there is probable cause to believe the licensee violated the law. The NREC may decide to dismiss the complaint, set the complaint for hearing, or file a new complaint against the licensee based upon the investigation.
Consent Order
The NREC has the authority to negotiate a consent order with an accused licensee. A consent order is an agreement in which the real estate broker or salesperson agrees to a sanction in return for avoiding a hearing and the uncertainty of its result.
A consent order may not be the best option in every case. For a broker or salesperson who believes they did nothing wrong, accepting a consent order may be extremely challenging. With the Lento Law Firm on your side, we can strategize about the conditions in which a consent order would make sense based on your needs, the allegations, and the results of our investigation. The Professional License Defense Team can negotiate a consent order on your behalf if you believe it is the best course of action.
Hearing
If the complaint has not been dismissed and a consent order has not been agreed to, the NREC will conduct a disciplinary hearing. The NREC has the authority to issue subpoenas to require the attendance and testimony of witnesses and the production of any papers, books, and documents during a disciplinary hearing.
During the hearing, the NREC chairperson or any of its commissioners may examine witnesses and accept evidence they deem pertinent to the allegations.
Findings and Determination
After the hearing, the NREC issues its findings and order in writing. If the NREC finds that the accused licensee has violated the Nebraska Real Estate License Act or the related regulations, they will issue a sanction.
Possible sanctions include:
- Censuring the licensee.
- Suspending the license of the broker or salesperson. A suspension may be stayed by the NREC and the licensee placed on probation.
- Imposing a civil fine.
- Ordering the license to take additional continuing education.
An NREC order can be appealed under Nebraska's Administrative Procedure Act.
Real estate licensing and professional misconduct are complex areas of law. Additionally, the stakes are high because the NREC has the authority to levy significant penalties against a broker or salesperson found to have committed a violation. In any license dispute, the NREC begins at a huge advantage over the targeted and accused licensee.
The Lento Law Firm can help even the playing field. You deserve to have an experienced attorney on your side, navigating every step of the investigation, hearing, and appeal process with you.
NREC Investigations, Hearings, and Sanctions May Lead to Additional Adverse Consequences
For many real estate professionals, it is devastating to learn that an accusation has been made against you, the NREC is investigating the allegations, and your license may be in jeopardy.
Your real estate career is an asset that you built. From your first real estate courses and exams to the deals carefully negotiated, you have invested time, money, and heart into your career.
Importantly, your license is the economic foundation on which your financial security is based. If your license is suspended or revoked, your and your family's livelihood may be at risk.
Many individuals find that an accusation of misconduct, even if unsubstantiated, can create an undesirable stigma. With your reputation on the line, you must build a team of attorneys prepared to fight on your behalf. At the Lento Law Firm, we are committed to our clients. We will advocate for you and your best interests.
Let the Lento Law Firm Help Protect You
Disciplinary investigations and hearings before the NREC are adversarial. The Lento Law Firm is ready to collaborate with you to create and execute a comprehensive license defense strategy in response to any disciplinary threat.
The Lento Law Firm Professional License Defense Team can defend you and your license through any disciplinary investigation or hearing by:
- Analyzing the complaint against you and ensuring that NREC meets its notice and due process requirements.
- Launching our own investigation to identify mitigating evidence and exonerating witnesses.
- Preparing you for your interview during the investigation and to give testimony during any deposition or hearing.
- Communicating with the NREC on your behalf and attempting to negotiate a dismissal, informal resolution, or consent decree.
- Drafting your answer, correspondence, and any other required documents for submission to the NREC.
- Developing an appellate strategy, if necessary.
- Serving as your trusted legal adviser, committed to you and your best interests.
No one wants a complaint against them filed with the NREC. It is easy to feel overwhelmed and alone when facing the stress and uncertainty of a misconduct investigation and hearing.
The Lento Law Firm Professional License Defense Team can help. We can discuss the allegations against you, the NREC investigative and hearing procedures, and your options to challenge the complaint. Our experienced attorneys are committed to our clients and their best interests. When you are ready, our experienced attorneys can help you with any license disciplinary matter.
The Lento Law Firm's Professional License Defense Team fights on behalf of licensed real estate professionals in Nebraska and across the United States. Contact our offices by phone at 888-535-3686 or complete an online consultation form.
