Real Estate Professional License Defense in Missouri

The State Laws Governing the Real Estate Profession in Missouri

The real estate profession in Missouri is governed under the Revised Statutes of Missouri Title XXII. Real estate professionals are under the regulatory authority of the Missouri Division of Professional Registration and the rules of the Missouri Real Estate Commission.

You have put in a great deal of time and energy working as a real estate professional. If you find your Missouri professional license under threat, seek help today from the dedicated legal professionals at the Lento Law Firm Professional License Defense Team. The Professional License Defense Team has helped professionals in all parts of Missouri, including the major metropolitan areas of Kansas City, St. Louis, Springfield, and Columbia. The Professional License Defense Team can answer any of your questions concerning license defense. Call 888-535-3686 today for help, or schedule a consultation online.

Licensing Issues for Real Estate Professionals in Missouri

Your professional license real estate license can be at risk for any violation of professional rules, regulations, standards, or ethics established by the Missouri Division of Professional Registration and the Missouri Real Estate Commission. The Missouri Real Estate Commission (MREC) is the body responsible for protecting the interests of the public in regard to any real estate transaction. It is responsible for the licensure of agents and brokers, for investigating complaints from the public, for auditing brokerage and escrow accounts, and for continuing education courses in real estate matters. Below are some of the most common infractions against real estate professionals for professional misconduct in Missouri:

• Unlawful license activity - This can include operating without a professional license or failing to take continuing education classes every two years in order to renew a license. Licenses can also be suspended in Missouri for non-payment of personal property taxes. All real estate professionals must have a valid real estate license to manage property in Missouri unless they are the owner of the property they are managing. It is also unlawful to receive a real estate commission without having a real estate license.
• Failure to Respond to MREC - It is an infraction for a real estate professional to not respond to requests from the MREC within 30 days.
• Improper Advertising/Marketing - The MREC requires that all companies be clearly identified. It is an infraction for a real estate professional not to identify and provide a phone number for the brokerage name or company name where the real estate agent works.
• Failure to Disclose - Agents must disclose material facts, including adverse material facts, to a customer. Missouri also requires that agents disclose the different options consumers have when working with them. Agents must also disclose whether they have a personal interest in a property or whether they are a relative of the owner.
• Improper Escrow Accounts - The MREC requires that all escrow accounts where the public's earnest money is held be registered with the MREC. It is also a violation to fail to close an escrow account when a brokerage closes. Any commingling of escrow funds with real estate sales, property management funds, or personal funds is a serious violation. It is also a violation if escrow account funds do not properly reconcile.
• Fictitious/Improper Names - This violation includes names that are not registered with the Secretary of State of Missouri, the registered name has expired, or the business sign does not match the license of the business.
• Improper Payment of Commissions - This includes paying commissions to an unlicensed persona, entity, LLC, team, or group.
• Improper Contracts - This violation includes having blanks on standard forms, failing to fulfill the terms and conditions in a contract, having an improper agency relationship in a contract that does not match any written documentation, and failing to initial lawful changes to a contract by all parties.
• No Office Policy - It is a violation for an office to have no office policy or an incorrect office policy.
• Address Change Not Filed with MREC - All licensees and brokerages must update their home addresses with the MREC when a change of address occurs.

Disciplinary Procedures Against a Real Estate Agent

Chapter 9 of the rules of the Missouri Real Estate Commission sets out the disciplinary proceedings against a licensed real estate professional.

• Complaint - The disciplinary procedures begin with a Complaint, which may be filed by any person. The rule requires that a Complaint against a licensee be in writing on forms that are provided by the MREC. A complaint may also be filed online or even by phone by any member of the public. The commission may also initiate a complaint on its own motion. Each complaint is logged by date, maintained by the commission, and includes the complainant's name and address and the name and address of the subject of the complaint. Every complaint will have a notation as to whether the complaint was dismissed by MREC or resulted in formal charges being filed with the Administrative Hearing Commission. There will also be a notation as to the final result of the complaint. The rule is designed to protect complaints filed by the public, and it does not protect a licensee against any administrative or judicial proceedings that the commission may institute for any violations of Chapter 339 of the Missouri Statute.
• Investigation of a Complaint - The MREC will investigate all properly filed complaints and will assign an investigator to gather evidence and interview relevant parties. The MREC may request that the licensee under investigation answer the charges in writing and produce any relevant documentation and evidence. The MREC may request that the licensee appear in person before the commission. A copy of the written answer may be furnished to the complainant.
• Dismissal of a Complaint - If the investigation reveals that the complaint does not involve a violation of license law or the rules of the commission, the complaint will be dismissed, and all parties will be notified. If a licensee has taken corrective action, such as restitution, after the filing of a legitimate complaint, the commission may dismiss a withdrawn complaint, but only at its discretion.
• Referral to the Administrative Hearing Commission - If the investigation shows a probability that the acts of the licensee may justify disciplinary action, the matter will be referred to either the License Revocation Committee or the Administrative Hearing Commission for determination. After hearing all evidence and testimony, the License Revocation Committee or the Administrative Hearing Commission will decide whether disciplinary action should be taken against the licensee.
• Final Ruling of the Administrative Hearing Commission and Disciplinary Action by MREC - If the Administrative Hearing Commission rules that the licensee has violated the professional license law or regulations, then the Missouri Real Estate Commission has the authority to “suspend, revoke, place on probation or take whatever action is necessary against the licensee.” A former licensee may also be required to meet and satisfactorily perform certain conditions before reinstating or reissuing a license. Examples of completion requirements could include completion of certain educational requirements, passage of a written exam, personal appearances before the MERC, periodic reports to the MREC, and restitution of money or property. An agent may also be required to pay fines. For example, if an agent violates advertising regulations, the fine could be anywhere from $100 to $1000 per violation, with suspension of license for failure to pay the fine. The lightest sanction would be a verbal or written reprimand.
• Appeal Process - A licensee has the right to appeal any disciplinary action against them. Appeals are taken if the agent believes the decision was unjust or if they feel they were not given a fair opportunity to defend themselves. The appeal is typically filed by submitting a formal written request for review and presenting evidence and argument to support their position. The outcome of the appeal is based on the discretion of MREC's appeal board.
• Timeline for Actions - The MREC has six years from an alleged violation to begin disciplinary proceedings and 10 years for allegations of fraud or misrepresentation. In the event that the agent is accused of a felony, there is no time limit for disciplinary action by MREC. MREC may also initiate disciplinary proceedings for discriminatory practices by an agent, including any violations of fair housing laws.

Considerations by MREC for Imposing Disciplinary Sanctions

The MREC will consider the severity of the violation, the history of misconduct, any mitigating circumstance or cooperation from the agent, and any harm to the public. Each case is evaluated on its merits based on all the evidence and specific circumstances of the case. It is always the goal of MREC to protect the consumer and maintain professional standards.

Common Examples of Disciplinary Action by MREC for Fraudulent Practices by a Real Estate Professional

The MREC has the authority to issue disciplinary actions in cases of fraud, misrepresentation, dishonesty, incompetence, breach of trust or fiduciary duty, failure to disclose material facts, failure to maintain records properly, and failure to follow agency rules. If there is a finding of fraudulent practice against a licensee, the MREC may take one of the following actions:

1. Revocation or Suspension of License
2. Imposition of Civil penalties- ranging from $5,000 to $10,000 per violation
3. Criminal Penalties- If the fraud is severe, the agent may also face criminal charges that could result in imprisonment.
4. Probation- The agent may be placed on probation, which may include restricting real estate activities and requiring mandatory education courses.
5. Denial or Non-Renewal of License- If the license is denied or not renewed due to fraud, the agent will no longer be able to practice real estate in Missouri
6. Monetary Restitution- An agent may have to pay monetary restitution to any party suffering financial damage due to the agent's fraudulent practices.
7. Discipline in other states- If an agent holds a license in other states, the fraudulent actions of the agent in one state could result in disciplinary actions in other states as well.

How the Lento Law Firm's Professional License Defense Team Can Help

It is important to remember that the goal of MREC is to protect the consumer and ensure compliance with professional standards for licensing real estate professionals. Although the hearing process before the Administrative Hearing Committee mentions adequate due process for all parties, the job of the Missouri Real Estate Commission in an administrative hearing is to protect the consumer, not the real estate agent. It is, therefore, vital that you take immediate action when facing allegations in a complaint that can threaten your professional license. The possibility of losing your professional license is very real and far-reaching. Your entire career as a real estate agent in Missouri may be destroyed. Even with lesser sanctions, damage to your professional reputation is likely. Acting quickly to get help from the Lento Law Firm's Professional License Defense Team is essential to help you mitigate the risks to your career and vigorously prepare defense strategies.

The Professional License Defense Team will carefully evaluate the specific circumstances of your case and vigorously outline all of your defense strategies. Your dedicated attorneys will gather all the relevant evidence, including documents, witness statements, and important records, to prepare a robust defense on your behalf. The Professional License Defense Team will represent all your legal interests at meetings and conferences with the MREC as well as at any administrative hearings. They will engage in negotiations on your behalf and find alternative resolutions if needed. If necessary, The Professional License Defense Team will file and argue any appeals on your behalf.

Remember that you are not alone in this stressful situation and that help from experienced professionals will greatly improve your chances of a successful resolution to the threat of losing your license. The Lento Law Firm Professional License Defense Team is committed to helping professionals in Missouri navigate complaints against them. Let the professionals at the Lento Law Firm Professional License Defense Team handle your proceedings. Call 888-535-3686 today for help, or schedule a consultation online.