You likely take great pride in your Louisiana real estate license, and rightfully so. It serves as a reflection of hard work, dedication, and your ability to earn a living while making use of knowledge and skills that few others possess. It also represents an opportunity to advance in your chosen field for as long as you choose to keep working. If someone has recently filed a complaint questioning your fitness to maintain that license, you may be – very understandably – freaking out. Thankfully, you have rights under the law as a licensed professional and the ability to seek knowledgeable guidance and support as you defend your license, your reputation, and your future.
The Professional License Defense Team at the Lento Law Firm has earned its reputation as trusted, compassionate legal advocates due in large part to our work representing brokers, realtors, and real estate agents throughout Louisiana and across the United States. We have seen the kind of devastation that can result from a malicious complaint, a mistake, or even a misunderstanding when a real estate professional's license is on the line. As a result of our extensive experience, we also understand how to resolve such matters respectfully, efficiently, and favorably on behalf of any particular client. Our team can be personalized to your unique circumstances as soon as we're notified of your concerns. Call 888-535-3686 or contact our team online today to get started.
The Seriousness of Your Situation
The Louisiana Real Estate Commission (LREC) describes its mission as “to serve and protect the public interest in real estate transactions and other real estate-related activities. We accomplish this by maintaining a tradition of open government; providing fair and equitable administration and enforcement of the Louisiana Real Estate License Law and Commission Rules and Regulations; and through the development of progressive education programs…” This is unquestionably a noble and worthwhile set of tasks. Those who actively seek to defraud the public should be questioned by this authoritative body. However, skilled and honorable real estate professionals may find themselves facing consequential scrutiny in front of the Commission as well, whether due to honest mistakes, misunderstandings, and/or the malice of those who have filed complaints against them.
The Commission is responsible for investigating any complaint that is considered both “valid” and within its jurisdiction. This means you could be facing an investigation that could potentially result in disciplinary action simply because someone has submitted a complaint against you that sounds plausible, even though that complaint may or may not be grounded in reality. The Commission can only assess the validity of allegations to a degree before it investigates a real estate professional's alleged misconduct. As frustrating as your circumstances can be, it is possible to effectively defend against the complaint that has been filed against you. But because the Commission may be feeling pressure to make an example out of you, you'll need to approach the opportunity to mount a strategic defense seriously, even if the complaint against you was filed as a result of a misunderstanding or malice. Because your license and your livelihood are at stake, you cannot afford to make any missteps as you respond to the allegations at issue.
The Alleged Basis of Complaints Against Real Estate Professionals Filed in Louisiana
Concerns about whether a complaint is valid can usually only be resolved via an investigation or evidence provided by the defense that shuts down any concerns about alleged misconduct detailed in a complaint. That is where employing a strategic approach to your circumstances comes into play. Simultaneously, it must be determined whether the Commission should be acting on the allegations detailed in the complaint in the first place. That is because the other primary concern that grounds the LREC's investigatory and disciplinary processes is that of “jurisdiction.”
The Louisiana Real Estate License Law outlines the state's interest in licensing real estate professionals, its authority to regulate their conduct, and its power to act on both of these concerns. Essentially, a real estate professional cannot lawfully be sanctioned by the Commission if this section of the Louisiana Code does not empower this body to take action given the details of any particular situation. If the Commission has no jurisdiction to act on your conduct, the allegations against you should have no bearing on your career. Say, for example, that a complaint has been filed alleging that you drive at high speeds around a particular neighborhood where you have been showing houses. Is that alleged behavior a great choice on your part? No. Does the Commission have any authority to do anything about it per the terms of the Louisiana Real Estate License Law? Also no.
So, what kinds of alleged or actual conduct does the LREC have the authority to investigate and potentially discipline licensed real estate professionals for? According to state law, the LREC has the jurisdiction to potentially impose sanctions when it comes to allegations involving the following:
- Committing an act in violation of the Louisiana Timesharing Act
- Failing to properly account for, deposit, or distribute another's money within a professional's possession
- Commingling money or assets of principals with a professional's own
- Charging, accepting, or giving an undisclosed rebate, commission, or direct profit on a principal's expenses
- Representing or attempting to represent a broker or agency other than those listed on a professional's state license
- Acting simultaneously as an agent and undisclosed principal in any real estate transaction, save for limited exceptions
- Guaranteeing or authorizing a guarantee of future profits on the resale of real property
- Offering the sale or lease of real estate for sale or lease without the owner's – or their authorized agent's – written consent.
- Offering the sale or lease of real estate on terms inconsistent with those authorized by its owner or their authorized agent
- Encouraging a party to a written sale, lease, or management contract to breach that real estate contract in order to substitute a new contract with an alternative principal or licensee
- Knowingly negotiating the lease, exchange, sale, or management of real estate directly with an owner or lessor who has a written outstanding contract granting exclusive agency or right to exchange, lease, sell, or manage it to another broker.
- Knowingly making false representations to a party to a real estate transaction.
- Acting on behalf of multiple parties to a real estate transaction without each's written acknowledgment of that arrangement
- Falsely representing the value or acting on terms of a real estate agreement other than those agreed upon
- Knowingly allowing a sponsored licensee to act as an individual real estate broker.
- Knowingly allowing a sponsored licensee or employee to violate the Louisiana Real Estate License Law.
- Failing to provide the parties to a real estate transaction with required disclosures
- Failing to provide written confirmation of compensation received in association with a real estate transaction to parties to that transaction
- Failing to surrender documents or instruments associated with a real estate transaction to their rightful owner(s) without just cause
- Accepting earnest money or good faith deposits in forms other than cash unless communicated and documented as required
- Failing to provide a buyer and seller with specific cost considerations (and their amounts) at the time an offer is presented
- Failing to produce a bona fide offer in writing when a proposed buyer requests it
- Failing to disclose known material defects
- Violating and being found guilty of violating the Fair Housing Act of 1968 or the Louisiana Equal Housing Opportunity Act
- Being convicted of a felony
- Refusing to appear or testify under oath at an LREC hearing if required to do so
- Procuring a license, certificate, or registration fraudulently or by means of misrepresentation or deceit
- Failing to comply with an order issued or approved by the LREC related to adjudicatory proceedings
- Failing to provide buyers with required disclosures
- Engaging or attempting to engage in real estate activity within the state if one's license has been suspended or revoked
- Utilizing inaccurate or misleading advertising
- Engaging in real estate efforts with an intent to deceive or defraud
Additionally, if a licensed Louisiana real estate professional allegedly commits any act in violation of any provision of the broader Louisiana Real Estate License Law or a host of nuanced state acts related to the regulation of real estate and professional conduct outside of the Louisiana Real Estate License Law, the Commission can potentially take action against them as well.
As you can see, the Commission's oversight is (relatively) narrowly tailored. This can be somewhat comforting, as you may have grounds to negotiate an end to your complaint scenario if the allegations against you don't reasonably fall within the LREC's purview. But, even if the conduct at issue lands squarely within the LREC's jurisdiction, you have the right to mount a strong defense and have capable legal counsel acting on your behalf as you do so.
Who Files Complaints Against Louisiana Real Estate Professionals?
Any member of the real estate profession or the general public is empowered to file a complaint against a licensed real estate professional in Louisiana. It is notable, however, that complaints cannot be filed anonymously. In addition to providing details about the alleged misconduct and how it unfolded, a complainant must also provide their name, address, and phone number.
Knowing who has filed a complaint against you can help our team construct a strategy that factors in whatever motivation this party may have had to take action. For example, while it is true that most complaints against real estate professionals are filed by disgruntled parties to a real estate transaction, that is not always the case. Sometimes, competitors file complaints to discredit those who may be successes or rising successes in an area that they believe to be their territory. Sometimes, a spouse or co-parent may file a complaint in the hopes of discrediting a professional who is going through a divorce or navigating a child custody dispute. And, sometimes, complaints are filed by individuals who can most accurately be described as trolls.
Ultimately, knowing the “who” can help to determine the best response to the question of “What now?”. Especially if a misunderstanding or malice is at the heart of the complaint against you, knowing who filed it can help our team craft a defense that discredits or clarifies the allegations in ways that can hopefully lead to a discreet, favorable resolution before your circumstances have a chance to escalate.
Investigating a Complaint
It bears repeating that if the Commission receives a complaint that can be considered potentially valid and within its jurisdiction, the LREC is compelled to investigate it. But, this doesn't mean that the Commission will necessarily move forward with a hearing (and, potentially, disciplinary action) once its investigative efforts are complete. It is sometimes possible to present defensive evidence and argumentation that is so strong that a complaint matter can be resolved discreetly and amicably without an evidentiary hearing. It is sometimes even possible to do so before an investigation has fully played out.
At the start, however, the Commission will require you to cooperate with its investigative efforts until it has decided to halt them or conclude its investigation. If you are asked to hand over documents or answer questions, you're expected to comply with these requests. You may feel so frustrated that you're tempted to stonewall the Commission to make a point. Don't. Instead, we'll work with you to advance a strategic approach to your defense throughout the investigative phase of your situation to hopefully reach a favorable conclusion as quickly as possible.
If, however, the Commission unveils evidence that it feels may indicate that you have committed actionable wrongdoing, its investigative process will likely end with notice that an evidentiary hearing will take place. The notable exception to this rule comes into play if the LREC and a professional under investigation reach a settlement. A settlement can allow a professional to be disciplined – often in the mildest ways available – without the scrutiny and stress of undergoing a hearing.
Should a hearing be scheduled in your case – absent very narrow and allegedly extreme circumstances – you are entitled to written notice of the charges at issue at least 20 days before this hearing is set to unfold. This notice must be delivered via certified mail or by hand delivery directly to you.
Evidentiary Hearings, Review, and Disciplinary Considerations
You are entitled to an evidentiary hearing before any adverse action can be taken against your license due to the property interest that a professional has in the licensure that they've earned. If a hearing is necessary, our team can present argumentation, evidence, and testimony on your behalf, just as the Commission may subpoena information and testimony in order to present and potentially prove its concerns. The stakes of a licensure integrity hearing couldn't be higher, as the Commission's determinations concerning finding of fact will, by law, be considered conclusive. This means that if you don't “win” a licensure hearing, you will be required to honor the terms of any disciplinary action imposed by the Commission unless you seek a review of questions of law with the Nineteenth Judicial District Court of Louisiana within 30 days.
If the Commission opts to discipline you, it is authorized to impose:
- Additional education requirements
- Censure
- Levy of a fine
- Temporary license suspension
- Permanent license revocation
You may also be subject to a combination of these forms of discipline.
Legal Support Is Available Now
If your license, your professional well-being, your future opportunities, and your reputation are at risk due to a complaint that has been filed against you, the time to begin defending these interests is now.
The Lento Law Firm's Professional License Defense Team knows how destructive even a single allegation – whether founded or unfounded – can be when it comes to the integrity of a real estate professional's career, and our approach to representation reflects that urgency. Benefit from personalized guidance and support now by calling 888-535-3686 or by contacting us online today. You have worked hard to cultivate a career and a reputation. Allow us to help you protect them.
