Real estate brokers, salespersons, and property managers are some of the most vital members of the District of Columbia professional community. They help clients manage and rent properties, find their dream homes, and handle complex commercial real estate transactions. However, these hard-working professionals sometimes face discipline from the D.C. Real Estate Commission for ethical or other violations. As frightening as it is when faced with a complaint against your license, it is vital to take immediate action.
The Lento Law Firm Professional License Defense Team understands how hard you have worked to be licensed as a broker, salesperson, or property manager and knows 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 professional reputation and your business. Complete our online form or call our offices today at 888.535.3686 to arrange a confidential consultation.
The D.C. Real Estate Commission
The D.C. Real Estate Commission governs and oversees all real estate professionals in the district, including property managers. It is the licensing authority for brokers, salespersons, and property managers in D.C. The Commission is responsible for complaints against real estate professionals and has the following powers:
- Issuing and Renewing Licenses: The D.C. Real Estate Commission is responsible for licensing brokers, salespersons, and property managers in D.C. The Commission makes the initial decision on whether an applicant for a license meets the criteria and will conduct a background check. This background check may reveal information that prevents the Commission from issuing a license.
- Investigating Complaints Against Licensees: The D.C. Real Estate Commission receives complaints against brokers, salespersons, and property managers in D.C. These complaints are typically from clients or associates, but anyone may file a complaint against a real estate professional in D.C. The Commission will investigate complaints and determine whether a violation occurred.
- Enforcing Disciplinary Actions: The D.C. Real Estate Commission is responsible for taking disciplinary action against a broker, salesperson, or property manager in the District. The Commission may issue a fine, reprimand, suspend, or revoke licenses for serious or continuing violations. The Commission has broad powers to discipline licensees.
Duties of Brokers, Salespersons, and Property Managers in D.C.
District of Columbia law spells out the duties of real estate professionals at length. The duty owed depends on whom the real estate professional represents. Many complaints concerning real estate professionals in D.C. arise from allegations of conflict of interest or a breach of the duties owed to the seller, buyer, or landlord.
Represent the Seller: Real estate professionals representing sellers must represent their interests. They must use ordinary care and keep the information confidential. They must treat buyers fairly and not give false information. They must disclose material facts to the seller and present offers and counteroffers in a timely way.
Represent the Buyer: Real estate professionals representing buyers must represent the buyer's interest and disclose any relationships to the buyer. They must account for all monies received from the buyer in a timely way. Brokers and salespeople representing a buyer must keep financial and sensitive information confidential and comply with fair housing laws.
Represent Landlords of Leased Property: Real estate professionals engaged by landlords mustpromote the landlord's interests and keep confidential information private. They must disclose adverse information on the property and treat potential tenants fairly.
Real estate professionals hired by other parties must use ordinary care, disclose material information, and promote their client's interests within ethical boundaries.
Common Issues Facing Real Estate Professionals in D.C.
Brokers, salespersons, and property managers in the District of Columbia may be disciplined for violating professional standards and rules. Common issues involved in disciplinary proceedings include:
- Fraud or Misrepresentation
A licensee may be disciplined for fraud or dishonest dealing. This might involve materially misrepresenting facts in a transaction, false advertising, dishonest dealing, or making false promises.
- Conflicts of Interest
Conflict of interest violations center around hidden transactions or self-dealing. This may mean acting as a broker for more than one party without the knowledge of all parties. It might also mean accepting money from a party without the knowledge of all parties. Self-dealing violations involve (when acting as a broker or salesperson) buying property without disclosing this in advance to parties.
- Criminal Convictions
D.C. real estate professionals must disclose criminal convictions to the D.C. Real Estate Commission. A felony conviction or any criminal conviction involving dishonesty or untrustworthiness may cost a broker, salesperson, or property manager their D.C. license. A real estate professional in D.C. should keep in mind that a misdemeanor not involving dishonesty or untrustworthiness is not a basis for discipline in D.C., but failing to disclose criminal convictions is. This may mean that a licensee faces discipline for failing to disclose something that would not have warranted discipline if disclosed.
- Breaches of Confidentiality
If a real estate professional discloses information harmful to the client (other than as legally required), they may face discipline. Disclosure of financial information provided as part of the transaction may be the basis for discipline.
- Broker Relationship Violations
These types of violations might involve accepting a fee from a broker to which you are not licensed or payment of fees to a non-licensed broker or salesperson. For a broker, it might involve failure to turn over the license of a terminated salesperson.
- Financial and Accounting Issues
Financial violations include failing to turn over funds belonging to another person. They may also involve failing to keep proper accounting of funds or properly maintaining an escrow account. Mishandling of client funds is normally the focus of heightened discipline.
- Contractual Issues
Contract issues center around listing a property without permission, failing to put relevant promises in writing, or failing to provide a copy of a written contract to all parties.
- Lack of Competence or Legal Violations
These types of violations involve discrimination, other legal violations, or failure to show competence in the profession. Some legal violations are quite serious, while others will likely result in an order for continuing education. The severity of discipline depends on the nature of the violation.
Allegations of any of the above violations can trigger the investigation process before the D.C. Real Estate Commission.
Real Estate License Discipline Process in the District of Columbia
The D.C. Real Estate Commission handles complaints and disciplinary actions against brokers, salespersons, and property managers. The process of discipline typically involves the following steps:
Complaint: The D.C. Real Estate Commission receives complaints against real estate professionals in the District. A client or colleague typically makes this complaint, but the Commission may begin an investigation on their own initiative. The Commission will review the complaint to determine whether a violation is alleged. If the complaint fails to state a violation (even if true), the Commission may dismiss the complaint.
Investigation: The Commission will begin a formal investigation if the complaint states a valid violation. The broker, salesperson, or property manager will have the opportunity to respond. No real estate professional should provide a statement or be interviewed unless they have spoken with an experienced license defense attorney beforehand. The Lento Law Firm can advise any real estate professional being investigated by the Commission. At this point, the matter can often be handled through negotiation and an agreement to rectify the issue. The Lento Law Firm prefers to handle issues early, before a formal hearing.
Hearing: If necessary, the Commission will conduct a hearing to receive all evidence, which may involve witnesses testifying, other documents, or electronic evidence. It is vital that a real estate professional present their case well at this hearing. Having an experienced attorney on your side at this point is essential.
Decision and Order: The Commission will then decide and issue a decision and order concerning discipline.
Appeal: If the Commission's determination is not in your favor, you will have the right to appeal to the D.C. Court of Appeals. The time period for appeal is short, so call the Lento Law Firm as quickly as possible if you have an adverse decision of the Commission.
Potential Disciplinary Actions in the District of Columbia
The District of Columbia Real Estate Commission has the power to discipline brokers, salespersons, and property managers in the district. These potential consequences include:
- Initial License Denial
The Commission may deny an initial broker, salesperson, or property manager license application based on a background check or other issues with the application. The Lento Law Firm represents applicants denied a real estate license in the District of Columbia.
- Suspension of Broker, Salesperson, or Property Manager License.
The Commission may suspend a real estate professional's license for a period of time or indefinitely. The suspension may involve a licensee doing something, such as training or counseling, before a license is reactivated. The Lento Law Firm represents individuals who wish to reactivate their real estate professional licenses after a period of suspension. This process can be involved and should not be undertaken without the experienced attorneys at the Lento Law Firm.
- Revocation of a Broker, Salesperson, or Property Manager License.
The revocation of a license means that the holder loses their license and must begin the licensing process again. In the District of Columbia, at least three years must pass between a suspension or revocation and a reapplication. The Commission will typically hesitate to re-license a former license holder with a revoked license. If you are in this position, contact the Lento Law Firm before you begin the reapplication process.
- Fines or penalties.
The Commission may order a licensee to pay fines for violations.
- Ordering the licensee to complete training or other licensing exams.
The Commission may order a licensee to complete training or other conditions to continue their profession.
- Probation/Placing restrictions on the licensee.
The Commission can limit your license in particular areas or place a licensee on probation.
Beyond these formal actions, a complaint before the D.C. Real Estate Commission can lead to a loss of business, loss of 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 face the D.C. Real Estate Commission without experienced legal counsel.
Reinstatement of License
If the Commission suspends or revokes the license of a broker, salesperson, or property manager, they may apply for reinstatement. The Commission will consider the following factors:
- The nature of the conduct which led to the suspension or revocation.
- Whether the applicant has shown recognition of the seriousness of the conduct.
- The conduct of the applicant since the suspension or revocation.
- The present character of the applicant.
- The applicant's qualifications and competency.
- The payment of fines or other requirements.
- The completion of any required continuing education.
While the reinstatement of a license is not assured, you can take steps to make it more likely. This might involve taking steps to rectify the issue or address the underlying cause. Call the Lento Law Firm for assistance if you seek reinstatement of your broker, salesperson, or property manager license before the Commission.
How Our Skilled Professional License Defense Team Can Help
Considering the possible sanctions the D.C. Real Estate Commission may impose on a broker, salesperson, or property manager can be overwhelming. Any disciplinary action creates uncertainty, leaving the real estate professional vulnerable and anxious. In this state, it is very hard to effectively represent yourself before the Commission. Without legal help, many professionals facing discipline are unable to act in their own best interests. The Lento Law Firm Professional License Defense Team is here to provide advice and support as you navigate this difficult process. We have a proven track record of successful license defense. Let us work to protect your broker, salesperson, or property manager license and your career. You have worked too long and hard to obtain your license and grow your business to see it all disappear. We can help, so call us today. Complete our online form or call our offices today at 888.535.3686 to arrange a confidential consultation.
