Your real estate license is a powerful asset. It allows you to pursue the meaningful, consequential, and potentially lucrative career that you've worked so hard to cultivate. Learning that someone has filed a complaint that could endanger that license is, therefore, understandably distressing. Thankfully, the fact that the integrity of your license has been called into question does not mean that you'll necessarily face any consequences related to your alleged misconduct. You have rights under the law as a professional license holder, including the right to present a strong defense to the allegations at issue.
You also have the right to retain experienced legal counsel as you navigate the process of responding to a complaint. The trusted Professional License Defense Team at the Lento Law Firm understands how to get results under circumstances like yours. We are proud to represent the interests of brokers, realtors, and real estate agents throughout Iowa and across the United States. Don't allow a mistake, a misunderstanding, or a malicious complaint to define your future. Allow us to help you fight back. Our team can start building a strong defense to safeguard your license as soon as we learn more about your situation. Call 888-535-3686 or contact our team online to get started. We look forward to working with you.
Responding to Your Serious Situation
Especially if the complaint filed against you isn't grounded in reality, you may be understandably tempted to treat your situation casually. “The truth will out,” after all, no? Unfortunately, that is not always the case, and it is one of the primary reasons why it is important to seek experienced legal guidance and support right away, regardless of the particulars of your real estate license complaint situation.
The Iowa Real Estate Commission (IREC) is a division of the state's Department of Inspections, Appeals, and Licensing. It describes its mission as working “to protect the public through the examination, licensing, and regulation of real estate brokers, salespersons, and firms.” Meaning, that the Commission's efforts to regulate the conduct of those who hold licenses and those who aspire to do so are taken in order to protect the public from fraud, waste, misleading advertisements, and a host of other concerns that might otherwise define the Iowa real estate industry. For various reasons, including those aimed at maintaining the relevance of the Commission itself, the agency faces pressures to make examples of those licensees who have allegedly engaged in misconduct. As a result, even if you have done nothing wrong, you may need to successfully navigate a surprisingly aggressive case against you in order to clear your name.
Given how valuable your professional license is to you – and possibly to your loved ones, those who work with you, and your community – it is important not to take the strength of your defense for granted. With your livelihood and reputation at stake, you'll need to prepare for what could prove to be an overly assertive and possibly unjust process ahead.
Why Are Complaints Filed Against Real Estate Professionals in Iowa?
The authority of the IREC is relatively narrow. While a seemingly endless number of behaviors could reflect negatively on the state's real estate profession, only a select number can be acted upon by the Commission. This means that simply because someone, perhaps a disgruntled party to a real estate transaction, a competitor, or a spouse whom you're divorcing, doesn't like your approach, doesn't mean that the Commission necessarily has the authority to act on the contents of a complaint. This is one of the reasons why the Commission's website warns those who may want to submit a complaint that “A copy of this complaint, in its entirety, may be given to the subject of the complaint.” If the Commission chooses to investigate your alleged misconduct, you have the right to receive a copy of the allegations against you. But if the contents of a complaint fall outside the Commission's authority, it has no right to investigate the concerns at issue, and serving you with notice of those concerns may not be necessary.
You may be wondering, “Does this mean that I don't need to do anything, if a complaint has been filed but I haven't yet received notice of an investigation?” Technically, you don't need to act to defend your license until the Commission is formally investigating your alleged conduct. However, the sooner that our Professional License Defense Team knows about your circumstances, the sooner we can start safeguarding your interests. If we can head off any concerns at the pass, you may not need to weather the stress of a formal investigation and the potential of an evidentiary hearing ending in disciplinary action.
If the Commission does have grounds for sanctions against a licensee or firm, its authority will be detailed in Section 193E of the Iowa Administrative Code or the state's Uniform Rules for the Professional Licensing and Regulation Division. If a complaint is filed related to alleged conduct that the Commission is empowered to oversee, the IREC has been granted statutory authority to “review and investigate alleged acts or omissions of licensees, determine whether disciplinary proceedings are warranted, initiate and prosecute disciplinary proceedings, establish standards of professional conduct, and impose discipline.” Some of the most common reasons that the Commission investigates and may discipline real estate licensed professionals in Iowa include:
- Professional incompetence
- Fraud related to the procurement of a real estate license
- Unethical conduct harmful to the public
- Knowingly making misleading or fraudulent representations in the practice of the real estate profession
- Habitual intoxication and/or addiction to drugs
- Conviction of certain criminal offenses
- Fraudulent representations related to one's professional abilities or skills
- False or misleading advertising
- Non-compliance with insurance requirements or trust account requirements
- Revocation of an individual's professional license of any kind, in Iowa or in another state
- Making substantial misrepresentations of any kind
- Making false promises likely to influence
- Acting on behalf of more than one party in a transaction without the knowledge and consent of everyone represented thusly
- Improper and unauthorized acceptance or payment of a commission or valuable consideration
- Representation of a broker other than one's employer without the employer's consent
- Failure to return another's property, money, or assets within a reasonable time period
- Conduct deemed to be a reflection of bad faith, improper, fraudulent, or dishonest dealings
- Failure to make required disclosures
Additionally, if the Commission requests information related to a formal or informal complaint and a licensee refuses to honor that request, an investigation and disciplinary action may be taken accordingly. This is yet another example of why seeking legal guidance as proactively as possible is wise. Even if you haven't yet been served with formal notice of a complaint, the actions you take now could help to determine whether you'll face legal trouble as your situation evolves.
When a Complaint is Filed Against a Real Estate Professional in Iowa
If a complaint is filed against you that alleges a kind of misconduct over which the IREC has authority, and the complaint otherwise meets basic criteria for filing and could possibly be valid, the Commission has the authority to launch an investigation. The Commission may also opt to launch an investigation absent a complaint, if it otherwise learns of allegedly concerning behavior over which it has jurisdiction. For example, if a member of the Commission learns from a news broadcast that you have developed a reputation as a fraudster, the Commission may initiate an investigation in order to evaluate this claim.
Once a complaint has been received by the Commission, it will be screened. This means that a designated staff member will determine whether the IREC has authority over the allegations and whether, if the allegations are true, they could constitute grounds for sanctions against the licensee whose behavior is being scrutinized. If the complaint should not properly be dismissed at that time, it will be referred to the Committee for review. The IREC will then determine whether to formally investigate the claim or not. The Committee is empowered to close a complaint case without any further review. However, the Committee is also empowered to initiate a disciplinary investigation. Under extreme circumstances, the Committee is empowered to skip the formal investigation process and move immediately to schedule a disciplinary proceeding. This does not mean that you can be disciplined without a formal hearing. It just means that the process of hearing both sides of a license integrity case can be expedited under circumstances that are perceived as particularly egregious.
Once an investigation is complete, a report is submitted to the full Committee. Upon review of the report, the IREC will determine whether to take any further action. The Committee may close a case with no further need to pursue disciplinary action at this phase of the process, as well, even if it believes that there is probable cause to believe that a violation of the state's professional rules has occurred. The law grants the IREC this explicit authority. It bears repeating that this is one of the reasons why it is so important to seek personalized legal guidance and support as soon as you learn that a complaint has been filed. If you act quickly, our team will have time to resolve the allegations against you discreetly and amicably, if at all possible.
With that said, it is possible that the Commission will, alternatively, opt for one of the following upon receiving an investigative report:
- Request further investigation
- Informally caution the licensee at issue about concerns that could form the basis for future disciplinary action
- Accept the terms of an informal settlement of the matter
- Stay further action on the case until circumstances evolve
- Initiate a disciplinary proceeding
Unlike the licensure investigation process in many other states, Iowa law leaves a lot of room for real estate professionals and their legal advocates to reach an amicable solution to allegations of misconduct. This means that if you treat your situation seriously and work with our team proactively, there is an unusually high chance that your career and professional reputation can emerge from your circumstances unscathed. Yet, should, for any reason, things evolve to the point wherein you're compelled to navigate a disciplinary hearing, know that the trusted Professional License Defense Team at the Lento Law Firm understands how to manage these high-stress situations efficiently and effectively.
Formal and Informal Real Estate Licensing Disciplinary Hearings
If the complaint against you is not favorably resolved by the time that the Committee has reviewed its initial investigation report, you may be asked to attend an informal discussion of your circumstances with the Committee. As anything that you say during such a discussion could be held against you later on, it's important that you not attend without legal representation. During this informal discussion, you'll be permitted to present your side of the story. It will be structured as a question-and-answer setting, however, so be prepared that you likely won't be given the chance to present a narrative uninterrupted. At the end of the discussion, the Committee may choose to:
- Close the case without further review
- Enter a consent order if all the parties agree to its terms
- Pursue further investigative efforts
- Initiate a formal disciplinary hearing
If the Committee decides to move forward with a formal disciplinary hearing – whether or not an informal discussion has taken place before it – you are entitled to notice of that fact.
A formal disciplinary hearing must be treated with the utmost seriousness. If this phase of the process isn't resolved in your favor, the Commission is empowered to impose the following sanctions:
- Continuing education requirements
- Licensure downgrade from broker to salesperson
- Reexamination requirement
- Physical and/or mental exams with reports back to the Commission
- License nonrenewal
- Temporary license suspension
- Permanent license revocation
- Probation
- Reprimand
- Monitoring or supervision mandates
- Civil penalties, including fines
A combination of these options may also be imposed. With so much at stake, you cannot afford to be casual about your defense strategy. Working with our team to prepare witnesses, develop strong argumentation, and present evidence in your favor can mean the difference between continuing your career and having it halted in its tracks.
Legal Assistance Is Available Now
The law in Iowa is usually supportive of the Commission's discretion to resolve matters in a licensee's favor. However, it bears repeating that the IREC may be under pressure at any given time to make examples out of professionals like you. No matter what the circumstances of a complaint filed against you may be, you need to take it seriously. There is too much at stake to approach your situation otherwise.
The Lento Law Firm's Professional License Defense Team can get to work on your case immediately. Seek personalized guidance and support now by calling 888-535-3686 or by contacting us online. We look forward to working with you.
