Real estate is a major industry in Arkansas, and many real estate professionals call it the state home. Real estate agents assist clients in buying their homes and handle large and complex commercial real estate sales. However, sometimes, these hard-working real estate professionals face allegations of wrongdoing. The Arkansas Real Estate Commission licenses brokers and salespeople in the state and can take disciplinary actions against licensees. These disciplinary actions can involve the suspension or revocation of a license or an order to pay restitution or damages to a member of the public. These damages can devastate a broker or seller.
The Lento Law Firm Professional License Defense Team understands how much your real estate license means to you and how devastating the loss of a license can be to your life. We are committed, with a proven track record on license defense cases, including those involving real estate licenses. Our experienced license defense attorneys will help protect your reputation and the business you have worked hard to build. Please complete our online form or call our offices today at 888.535.3686 to arrange a confidential consultation.
The Arkansas Real Estate Commission
The Arkansas Real Estate Commission governs and oversees all real estate professionals in the state, including time-share salespeople. It is a five-member governing body for real estate professionals, brokers, and salespeople in Arkansas. The Commission is responsible for complaints against real estate professionals in Arkansas and payment from the Real Estate Commission Fund. The Commission has the following powers:
- Issuing and Renewing Licenses: The Arkansas Real Estate Commission is responsible for the licensing process of real estate professionals in Arkansas. The Commission determines whether applicants meet licensing criteria and will determine whether a negative item on a background check will prevent licensing. The Commission decides when and under what terms to renew licenses, including whether the licensee has completed ongoing training and other requirements.
- Investigating Complaints Against Licensees: The Arkansas Real Estate Commission reviews complaints against licensees. These may be made by clients, professional associates, or other members of the public. The Commission has the power to investigate these complaints and determine whether a violation has occurred. The Commission also has the power to subpoena witnesses and documents.
- Enforcing Disciplinary Actions: If the Arkansas Real Estate Commission finds a licensee in violation of regulations, they may assess fines and may suspend or revoke the license. The Commission has broad powers to hold licensees accountable in Arkansas.
- Ordering Licensees to pay Restitution or Damages: The Arkansas Real Estate Commission may order brokers or salespeople to pay restitution to clients or members of the public. They may assess damages against licensees.
Administering the Arkansas Real Estate Commission Fund
Real estate professionals in Arkansas must adhere to the rules and regulations under the Arkansas Real Estate License Law. If the licensee has any legal or personal issues, it can lead to serious negative consequences. These consequences can range from fines to loss of their real estate license. The Commission also has broad powers to force real estate professionals to pay restitution or remuneration to clients or injured persons.
Proceedings before the Arkansas Real Estate Commission can harm your professional reputation and impact your future ability to find employment. Anyone accused of wrongdoing by the Arkansas Real Estate Commission should thoroughly understand the profession's rules and regulations. Arkansas law in this area is complex, and licensees will need an experienced license defense attorney to guide them through the process. In today's competitive and lucrative real estate field, no one can afford the damage that a license suspension or other action can bring.
Common Issues Facing Real Estate Professionals in Arkansas
Real estate licensed professionals in Arkansas can be disciplined for violating their professional rules. Common issues involved in disciplinary proceedings include:
- Fraud or misrepresentation used to obtain a license.
- Violations of rules of practice.
- Conviction or guilty/nolo contendere plea to a felony involving fraud, dishonesty, or untrustworthiness.
- Making substantial misrepresentations.
- Making or publishing false statements or promises to induce another person to act.
- Failure to properly handle money belonging to another party.
- Committing an act of violence, fraud, or untrustworthiness.
- Representing multiple parties without the knowledge of all parties to a transaction.
- Acting as a broker or salesperson without a license with a principal broker.
- False advertising.
- Incompetence or failure to safeguard public interest.
- Paying a commission to an unlicensed person.
- Time-share sales violations.
Allegations of any of the above violations can trigger the investigation process.
Real Estate License Discipline Process in Arkansas
Complaint: The Arkansas Real Estate Commission may begin an investigation when someone files a complaint in writing or on its own motion. If a complaint is filed, the Commission will review it to see if it contains allegations of a “prima facie” case. This means that if everything alleged is true, the complaint states an actionable violation. If the complaint fails to state this “prima facie” case, the Commission will dismiss the complaint.
Investigation: The Commission will begin an investigation if the complaint states an actionable violation or case. However, the Commission can still dismiss the complaint after the beginning of an investigation for lack of sufficient evidence. If the Commission finds sufficient proof of the violation, the licensed broker or salesperson will be notified of the charges. The Commission will not investigate a complaint of behavior that occurred more than three years earlier, except for fraud in the application for a license.
Citation Process: The Arkansas Real Estate Commission may follow an alternative citation process for many violations. Under this process, the Commission may order fines up to $250 for failing to complete continuing education requirements, acting with an expired license, or distributing advertising that violates regulations. Under the citation process, the Commission will send a citation with:
- The name, title, and mailing address of the licensee.
- The violation description.
- The time and date of the alleged violation.
- The amount of the penalty.
A licensee has thirty days from the date the citation is issued to pay the citation or to dispute the citation. If the licensee does not send a written complaint disputing the citation, it will become final. If the licensee files a complaint, the Commission will notify the licensee of the time and date of the hearing.
Hearing: Hearings before the Arkansas Real Estate Commission are governed by the Arkansas Administrative Procedure Act, § 25-15-201 et seq. The Commission will provide an Order and Notice of hearing. The Order should provide allegations and charges.
Under the formal hearing process, at least three members of the Commission must be present. A representative from the Attorney General's Office will present the Commission's case. A licensee-respondent must present their own case unless they have legal counsel. After the licensee-respondent or their attorney has presented the case, the Commission will decide whether they violated the Arkansas Real Estate License Law. If the Commission finds that one or more violations occurred, it will decide what sanctions, if any, are appropriate. The Commission has very broad powers to determine sanctions.
Commission Order: The Commission will then make Findings of Fact and Conclusions of Law (i.e., what actually happened and what laws were involved) and will issue an Order. Once the Commission has entered an Order, the licensee-respondent will have thirty days to appeal the Order to the appropriate appellate court.
Time-Share Sales
The Arkansas Time-Share Act governs time-share development and sales in Arkansas. The Commission can revoke time-share plans and assess civil penalties.
Potential Disciplinary Actions in Arkansas
The Arkansas Real Estate Commission has broad powers over real estate licensees in the state. Further, the consequences of Commission discipline can go far beyond the discipline imposed. These consequences can severely impact the ability of brokers and salespeople to earn a living or find employment. These potential consequences include:
- Denial of an initial real estate license.
The Commission has the power to deny an initial application for a real estate professional license. This denial may be based on a background check or other issues with the application. The Lento Law Firm represents applicants denied a real estate license in Arkansas.
- Suspension of a real estate license for a period of time.
The Commission may suspend a real estate professional's license. This suspension is typically for a set period of time, although it might be indefinite. Sometimes, a suspension will be in place until the licensee-respondent has done something, like completing training or drug or alcohol treatment. The Lento Law Firm represents individuals who are ready to reactivate their licenses after a suspension. This process can be involved and should not be undertaken without the experienced attorneys at the Lento Law Firm.
- Revocation of a real estate license.
A revocation is the worst-case scenario in the license world. It means that the licensee will lose their license, and the only way to regain it is to start the application and exam process again. Typically, the Commission will be hesitant to relicense someone who has had a prior license revoked. If you are in this position, contact the Lento Law Firm before you begin the reapplication process.
- Fines or penalties of up to $1,000 per violation.
The power to fine a licensee may be limited, but remember that the Commission has the power to order restitution or payment of damages to a client or other member of the public. Therefore, an adverse finding from the Commission can prove very expensive.
- Ordering the licensee to complete training or other licensing exams.
The Commission has the power to order the licensee to complete certain conditions before continuing their profession. This can mean training or even counseling.
- Placing restrictions on the licensee.
The Commission can limit your license to particular kinds of transactions. For example, they may limit your ability to sell time-shares or to handle transactions without supervision.
- Ordering payment of restitution, damages, or penalties as the Commission deems necessary and appropriate.
The Commission has the right to order restitution or damages, which can involve substantial amounts of money. If you fail to pay, the Commission has the right to seek a court order. The Commission has broad powers in this area to take “necessary and appropriate” actions, which can sometimes translate into arbitrary and punitive actions. If you are facing a situation with significant exposure to restitution, you should have legal counsel.
- Other penalties that would reimburse an injured party or promote the regulation of the profession.
While the Commission's ability to fine a licensee is limited, it may order restitution, damages, or penalties to members of the public or third parties. This can mean a violation can be financially devastating. The Commission can file suit in county court to collect or force payment of these penalties or damages. For this reason, anyone facing disciplinary action before the Arkansas Real Estate Commission must consider the necessary investment in an experienced attorney.
Beyond these formal actions, a complaint before the Arkansas Real Estate Commission can result in the loss of clients, difficulty finding other employment, and damage to your reputation. The Lento Law Firm is here to provide support and advice to avoid or limit damage to your reputation and livelihood. Don't go into an action before the Commission without experienced legal counsel.
How Our Skilled Professional License Defense Team Can Help
Considering the possible sanctions that the Arkansas Real Estate Commission may impose can be overwhelming. This is a time of tremendous uncertainty, and this reality can be devastating without legal help. The Lento Law Firm Professional License Defense Team is here to guide and support you as you navigate this difficult process. We have a proven track record of successful license defense. Let us work to protect your license and real estate career. Considering all your hard work to get your real estate license and build your business, the investment in an experienced license defense attorney is critical right now. Please complete our online form or call our offices today at 888.535.3686 to arrange a confidential consultation.
