You likely chose to earn your real estate license so that you could enjoy a fulfilling career and a stable financial income. If you have recently learned that a complaint has been filed against you, alleging that your fitness to maintain that license should be scrutinized by the state, you may be feeling understandably panicked, furious, confused, or hurt. It is normal to worry and feel stressed under such circumstances. But it is important to understand that you have options and that you don't have to figure out how to exercise them effectively alone.
The respected Professional License Defense Team at the Lento Law Firm represents the interests of brokers, realtors, and real estate agents in Kentucky and across the United States. We understand that a mistake, misunderstanding, or malicious complaint can seriously endanger the career that a real estate professional has worked so hard to cultivate. We also understand how to advocate for our client's interests efficiently and effectively. Allow our team to start building a strong defense on your behalf today. Call 888-535-3686 or contact our team online to learn more about your rights, your options, and how we can help.
Your Situation Is Serious
On the one hand, it's important to have the state investigate legitimate allegations of fraud, material misrepresentations, and other conduct that places the integrity of the real estate profession at risk. On the other hand, it can be nothing short of maddening to be forced to spend time, money, and energy defending against complaints lodged due to misunderstandings, mistakes made in good faith, or malice. With that said, remaining calm, professional, and focused on the end goal of preserving your professional license can help you approach your defense against the allegations you're facing in the most productive way.
The Kentucky Real Estate Commission (KREC) is the administrative body that investigates complaints filed by the public related to alleged violations of professional real estate licensure standards. The good news is that the Commission understands that not every complaint that is filed against Kentucky professionals is legitimate and grounds for discipline. The tough news is that the Commission is often under significant pressure to “make examples” out of professionals who have allegedly committed wrongdoing. As a result, it's very important to treat your circumstances seriously, even if the grounds upon which a complaint was filed against you are totally unwarranted. If you don't present a strong defense, your license could be suspended or even permanently revoked. There is too much at stake to treat the charges against you lightly.
Why Do Complaints Against Real Estate Professionals Get Filed in Kentucky?
Unlike many other real estate licensing boards, the Commission in Kentucky has a relatively narrow focus. By law, the KREC will only investigate complaints that have been filed according to very specific criteria. For example, a complaint must be filed within one year of when a complainant knew or should have known about the concerning conduct at issue. However, the most important complaint criterion is that a complainant “must allege facts which, if true, would constitute a violation of KRS 324.160 by a licensee of the KREC.”
KRS 324.160 is the section of the Kentucky Code that details the kinds of conduct that may serve as grounds for sanctions by the Commission. Any complaints filed regarding alleged conduct committed that isn't addressed by this provision of law cannot be addressed by disciplinary means via the Commission. Per the terms of this regulation, the Commission is empowered to investigate and potentially discipline licensed Kentucky real estate professionals for the following kinds of alleged or actual conduct:
- False or fraudulent representation in seeking licensure
- Substantial misrepresentation in or failure to disclose known material defects
- False promises likely to induce, influence, or persuade
- False or flagrantly misrepresentative advertising
- Acting for multiple parties in a transaction without their express knowledge and consent
- Purchase or sale of property without submitting required disclosures Accepting valuable consideration for the performance of acts specified by law from anyone except one's principal broker per the terms of a compensation agreement between both parties
- Accepting any commission, rebate, or profit made for a client without their knowledge and consent when acting as an agent in the management of property
- Representing or attempting to represent a broker without the knowledge and consent of their affiliated principal broker
- Failing to reasonably account for or remit any money belonging to others
- Paying valuable consideration to anyone for services performed in violation of this section of the law
- Selling, soliciting, or offering real property for sale via a contest, lottery, or deceptive practice
- Acting in a simultaneous capacity as a licensee and undisclosed principal in any real estate transaction
- Authorizing, permitting, or guaranteeing a person that future profits will result from resale of real property
- Knowingly negotiating or attempting to negotiate the exchange, lease, rental, or sale of real property (or attempting to obtain a brokerage agreement) with a consumer who has a written, exclusive, outstanding contract with another real estate broker
- Publishing or otherwise circulating unjustified or unwarranted threats of legal proceedings or other adverse action
- Failing or refusing on demand to provide transaction-related copies of a real estate document to a signatory of that document
- Failing to reasonably provide complaint-related information requested by the commission
- Paying valuable consideration to anyone for the name of potential sellers or buyers, unless explicitly allowed by law
- fraudulent, dishonest, or otherwise improper dealing
- Gross negligence
- Conduct constituting a violation of the Federal Fair Housing Act
- Violations of state law concerning residential real property service agreements
- Failure of a broker or their designated manager to exercise adequate supervision of licensed affiliates
- Negotiating, attempting to negotiate, or otherwise obtaining "net listings"
Additionally, if a licensed Kentucky real estate professional enters a guilty or Alford plea to, or is otherwise found guilty of, a felony or of a misdemeanor involving sexual misconduct, the Commission can take action against them as well.
While some of the kinds of conduct governed by the Commission's oversight are narrowly tailored, others are quite broad. This is primarily why so many of your colleagues have found themselves where you stand now. When a complaint is filed that could be considered a violation of the conduct outlined above, the Commission is compelled to act. Thankfully, the law protects your right to mount a defense and your right to retain capable, experienced legal guidance as you do so.
Filing Complaints Against Real Estate Professionals in Kentucky
Chances are good that the complaint filed against you was submitted by a dissatisfied customer or another party to a real estate transaction in which you had a part. However, it is possible that the complaint in question was filed by a colleague, an overly concerned member of the general public, or even someone close to you. Perhaps you're going through a divorce, and it would serve your spouse well if your reputation was tarnished, so they or someone close to them took action to sully your name. Complaints can be filed with the Commission by anyone.
Just remember that complaints themselves should only be investigated if they meet specific criteria and relate to one of the specific kinds of violations governed by the Commission's oversight. It may be possible to get the complaint against you favorably resolved before the Commission fully investigates your alleged conduct if one of these two concerns doesn't apply to your unique circumstances.
For example, you may have been notified that someone has filed a complaint against you, only to learn that the Commission isn't pursuing an investigation because that complaint doesn't demonstrate a prima facie case that you have engaged in actionable misconduct. While the Commission gives complainants 10 days to revise inadequately supported complaints, not all complainants can provide proper evidence of their allegations, and these matters are ultimately resolved without formal investigations. Although it's important to seek legal guidance immediately upon learning about a filed complaint, know that your case isn't inevitably headed for a formal investigation, hearing, and handing down of consequences.
Investigating a Real Estate Licensing Complaint
Once a verified complaint has been filed, state law insists that the Commission “shall investigate” whether the licensed target of that complaint has committed any of the kinds of violations described above. The Commission is required to notify you if it decides to formally investigate your circumstances. Upon receiving this notice, you will be given 20 days to return a notarized response to the complaint via paperwork secured from the Commission's offices. The only exception to this 20-day response period goes into effect if an alleged escrow account violation is so egregious that the Committee opts to convene an emergency hearing to address it.
In your response, you'll be empowered to address the allegations against you, submit evidentiary exhibits, and make pleadings. This is a critically important phase of your case, as it presents an opportunity to respond so definitively that the Commission may decide to conclude its investigation in your favor without moving onto an evidentiary hearing. This is one of the reasons why it's so important to secure experienced legal guidance and assistance as quickly as possible. The savvy Professional License Defense Team at the Lento Law Firm has represented so many clients throughout Kentucky and across the U.S. that we understand how to make the most of this phase of the process. We believe in resolving matters discreetly, efficiently, and amicably whenever possible and appropriate because we understand how public knowledge of even an unfounded allegation of wrongdoing can impact a professional's career and personal life.
During the investigative phase of this journey, the Commission is explicitly empowered to take the following actions when determining next steps:
- Issue subpoenas to obtain evidence and compel witnesses to testify
- Administer oaths
- Review evidence
- Examine witnesses, who may be paid for their time by the Commission
- Enter the office of a principal broker to inspect documents as allowed by law
It is at the Commission's discretion whether to hold a hearing in the wake of an investigation or resolve a complaint without taking any adverse action. Alternatively, the Commission may opt to settle a matter without a hearing, should the target of the investigation consent to that course of action. Meaning for example, if an honest mistake has been made and you consent to an informal reprimand as negotiated between our team and the Committee, that may be one way of resolving your case without a formal evidentiary hearing or any kind of action that could harm your career.
Real Estate Licensing Complaint Hearings
If your case is not resolved favorably early by the time that the Commission has concluded its investigation and determined that adverse action against you may be appropriate, a hearing will be ordered. This hearing is your right, and it will allow our team to present evidence, argumentation, and witness testimony in your defense.
The stakes of an evidentiary hearing couldn't be higher, professionally speaking. According to KRS 324.160, the Board is empowered to impose the following sanctions on licensed real estate professionals for violations of this regulation, as discussed above, if the outcome of a hearing is unfavorable to the real estate professional under scrutiny:
- Education credit hours requirement
- Fines not to exceed $1,000
- Probationary period not to exceed 12 months
- Reprimand (formal or informal)
- Temporary license suspension
- Permanent license revocation
A combination of these professional sanctions is also a possibility. Although you may be able to successfully appeal the Board's decision within 30 days of an unfavorable outcome, avoiding this stress and additional hurdle is advisable. Your time is precious, your career is important, and resolving your situation favorably as early as possible after a complaint has been filed is ideal.
Legal Assistance Is Available Now
The Commission represents the interests of the profession more broadly, but it doesn't represent the interests of individual professionals who are facing scrutiny. Therefore, if a complaint has been filed against you – however grounded or unfounded it may be – your license, your reputation, and your professional future are at risk.
The Lento Law Firm's Professional License Defense Team understands both what is at stake and how to advocate for a meaningfully favorable resolution to this situation on your behalf. Seek personalized guidance and support now by calling 888-535-3686 or by contacting us online. Your license is valuable, your reputation is precious, and your future opportunities are important. Connect with us today so that we can work to preserve them for you.
