Delaware has one of the highest standards of living in the U.S., and it is known for its vibrant and beautiful cities. Many locations in Delaware are close-knit and have a small-town charm with big-city amenities. For many people, owning a home or business in Delaware is a dream. Real estate salespersons and brokers help make this dream a reality. However, real estate transactions are strictly regulated in Delaware, and this strict regulation can lead to accusations of wrongdoing against salespersons and brokers. If you have received a notice from the Delaware Real Estate Commission that you are being investigated, you are understandably frustrated, angry, and anxious. It is vital, however, to maintain your cool and find legal counsel to help.
The Lento Law Firm Professional License Defense Team understands your situation and how hard you have worked to get your real estate license and establish your business. We also understand how devastating the loss of your license would be to your life and family. We have a proven track record of successfully defending professional licensees, including real estate brokers and salespersons. Our experienced license defense attorneys will act to protect your reputation and business against disciplinary actions. Complete our online form or call our offices today at 888.535.3686 to arrange a confidential consultation.
The Delaware Real Estate Commission
The Delaware Real Estate Commission is a nine-member panel appointed by the Governor. The Delaware Real Estate Commission has the power to:
- Make rules for the licensure of real estate salespersons, associate brokers, and brokers in Delaware.
- Grant or deny initial licenses to salespersons, associate brokers, and brokers in Delaware.
- Renew real estate licenses.
- Perform audits and evaluate certified records of licensees.
- Refer complaints against salespersons, associate brokers, and brokers to the Division of Occupational Licensing for investigation.
- Conduct hearings and decide discipline against licensees.
- Impose sanctions, including suspension or revocation of real estate professional licenses.
- Fine licensees up to $5,000 for a first offense or up to $10,000 for a repeated or subsequent offense.
- Administrate the Real Estate Guarantee Fund and hold hearings to decide if a party should receive compensation from the Fund.
Common Issues Facing Real Estate Professionals in Delaware
Delaware's brokers and salespersons may be disciplined for violating professional standards and rules. Common issues involved in disciplinary proceedings include:
- Making substantial misrepresentations.
- Making false promises to induce someone to act.
- Failing to account for money or property held for another party.
- Illegal actions in real estate practice.
- Acting incompetently or negligently or failing to safeguard the public interest.
- Paying another to violate the rules of professional real estate practice.
- Acting without a license or assisting another person to act as a salesperson or broker without a license.
- Failing to make necessary disclosures to clients, particularly where a conflict of interest is involved.
- Failing to properly use required forms (such as seller's disclosures).
- Engaging in fraud or material deception in license application.
- A criminal conviction substantially related to the practice of real estate services.
- Suspension or revocation of a license in another jurisdiction or failing to disclose any discipline in another jurisdiction.
The Commission may suspend or revoke the license of any real estate professional convicted of forgery, embezzlement, obtaining money under false pretenses, bribery, larceny, extortion, conspiracy to defraud, or other similar criminal offenses. If a licensee enters a no contendere (no-contest) plea, this plea will be treated like a conviction. If you have been convicted or plan to make a guilty or no-contest plea, you will probably need to disclose this to the Delaware Real Estate Commission. Call the Lento Law Firm today if you have questions about disclosing criminal issues.
The Lento Law Firm represents licensed real estate salespersons and brokers in Delaware facing allegations of wrongdoing. Although we prefer to begin representation as early in the disciplinary process as possible, we represent clients at any stage. Even if you made the mistake of proceeding without counsel, we can begin representing you now and mitigate any damage done earlier. Whatever type of allegation you face, call the Lento Law Firm, and let us start fighting for your real estate license today.
Discipline For Failing to Disclose in Delaware
Brokers and salespeople have duties to disclose in Delaware and must make these disclosures on the prescribed forms. A failure to disclose a property's defects is often the subject of complaints and discipline in Delaware. A failure to disclose can involve:
- Failing to make disclosures or submit the proper forms.
- Providing deliberately false or misleading information concerning a property.
- Failing to disclose known defects to buyers
- Publishing or providing misleading photos or property descriptions.
After a disappointing sale, a buyer may file a complaint with the Delaware Real Estate Commission for failure to disclose. Brokers and salespeople should take these complaints very seriously because they can result in license suspension, revocation, or restitution damages. The Lento Law Firm represents real estate professionals accused of failure to disclose in Delaware.
Real Estate License Discipline Process in Delaware
The Delaware Real Estate Commission and the Division of Occupational Licensing handle complaints and disciplinary actions against brokers, associate brokers, and salespersons. The process of discipline typically involves the following:
Complaint: In Delaware, the Real Estate Commission receives complaints regarding real estate professionals. Anyone may file these complaints, but clients, regulatory agencies, and colleagues typically file them. The Commission will review the complaint to see if it states a violation of the rules, regulations, or laws.
Investigation: If the Delaware Real Estate Commission decides the complaint states a violation, it will refer the complaint to the Division of Occupational Licensing, Investigative Division. The Division will conduct an investigation with the technical assistance of a member of the Commission. The Division will likely, at this point, investigate and take witness statements. No real estate professional should provide a statement or be interviewed until they have spoken with an experienced license defense attorney. The Lento Law Firm can advise any real estate professional investigated by the Delaware Division of Occupational Licensing. During an investigation, the Lento Law Firm can often handle complaints through negotiation and agreement so the complaint does not go further.
Report to the Commission: When the Investigative Division has completed its investigation, it will issue a Final Report to the Delaware Real Estate Commission. Once this Final Report is available, the Lento Law Firm will attempt to conduct a settlement conference. Often, disciplinary issues can be handled informally, saving the licensee embarrassment and further expense. If it is not possible to settle the matter through negotiation, it will proceed to a hearing.
Hearing: The Delaware Real Estate Commission will conduct a disciplinary hearing, during which they will hear witnesses' testimony and review documents and evidence, including electronic evidence. Counsel may represent a licensee at this hearing. Managing the presentation of evidence is difficult for a layperson, and having an experienced license defense attorney on your side is vital at this hearing.
Decision and Order: After the hearing, the Delaware Real Estate Commission will decide the issues in dispute and whether sanctions will be imposed.
Appeal: If the Real Estate Commission orders sanctions, the licensee will have 30 days to appeal the Commission's determination to the Superior Court. This time period begins when the order is mailed, so it is imperative that a licensee who wishes to appeal contact the Lento Law Firm as quickly as possible.
The disciplinary process can be long and frustrating in Delaware, and you may start to feel that the “cards are stacked against you.” Regardless of where you are in the disciplinary process, the Lento Law Firm can advise and guide you to the best result possible. It is not easy to go up against the State, but having experienced counsel will help to level the playing field.
Potential Disciplinary Actions in Delaware
The Delaware Real Estate Commission may discipline brokers, salespersons, and other real estate professionals. Potential discipline includes:
- Probation
The Real Estate Commission may place a licensee on probationary status. The Commission may order the salesperson or broker to report regularly to the Commission or to limit their practice. They may ask a licensee on probation to take continuing education classes or other actions designed to address issues. It is vital to remember that if the terms of probation are violated, the Delaware Real Estate Commission will proceed to suspend or revoke the license in question.
- Formal Reprimand
The Commission may reprimand a real estate professional and put a formal letter of reprimand on their record. This letter typically must be reported to other jurisdictions.
- Continuing Education
The Commission may order a broker, salesperson, or other real estate professional to take classes or engage in other continuing education.
- Fines
The Commission may fine the broker, salesperson, or other real estate professional up to $5,000 per occurrence. For second violations, this fine may increase.
- Initial License Denial
The Commission may deny the application for a license because of the background check or other issues. The Lento Law Firm represents applicants denied a real estate license in Delaware.
- Suspension of License.
The Commission may suspend a real estate salesperson or broker's license for a period of time, often for years. After the suspension period, the salesperson or broker must apply to reactivate their license. The reactivation process can be long and difficult, particularly if you attempt it without legal help. The Lento Law Firm represents individuals who wish to reactivate their licenses after a period of suspension, and we can help you get things back on track.
- Revocation of License.
A license revocation is the worst-case scenario. It means that the salesperson or broker loses their license outright and must seek a new license. Often, this means waiting years to reapply. Even with time, the Real Estate Commission will be reluctant to grant a license to someone who has had a prior license revoked. The Lento Law Firm can help in this process.
Besides the legal sanctions, a disciplinary complaint before the Delaware Real Estate Commission can damage your reputation and lead to a loss of business or employment. The Lento Law Firm is here to provide support and guidance to limit this damage to your ability to earn a living.
Reinstatement of License
The Delaware Real Estate Commission will reinstate licenses that have lapsed or have been suspended. The Commission will hear evidence, typically at a hearing, to establish that the licensee has fulfilled the terms of a suspension order and is otherwise ready to commence their professional practice with “reasonable skill and safety.” If the Delaware Real Estate Commission revokes a license, the reinstatement process will not be available to the former licensee—they must apply just as any other applicant. However, the application process will be much more difficult. The Lento Law Firm can advise revoked licensees on how to reapply so that relicensing is more likely.
How Our Skilled Professional License Defense Team Can Help
If you face discipline before the Delaware Real Estate Commission, the thought of the possible loss of your license can be frightening and overwhelming. It is difficult to defend yourself before the Commission and more difficult without experienced legal counsel. In this environment, you may find it hard to make decisions, but remember that hiring an experienced attorney is your best decision. The right legal team can guide you through this difficult time and limit the damage to your license and life.
Wherever you reside in Delaware, the Lento Law Firm Professional License Defense Team is here to provide advice and support as you fight the allegations made against you. We have a proven track record of successful license defense. Let us work to protect your broker, associate broker, or salesperson license and your professional reputation. Don't let all your hard work over many years go to waste. We can help, so call us today. Complete our online form or call our offices at 888.535.3686 to arrange a confidential consultation.
