Common Real Estate License Enforcement Issues
If you are licensed through the Nevada Real Estate Commission, or if you should be, the division has the authority to investigate allegations of misconduct and, if necessary, take disciplinary action. Some common reasons for disciplinary hearings and sanctions include:
- Engaging in unlicensed real estate activities
- Engaging in deceptive or unfair marketing and advertising practices
- Committing discriminatory acts
- Violating state and federal fair housing laws
- Brokers lending their name/license for the benefit of others
- Brokers offering payments or gifts to unlicensed individuals for referrals
- Brokers failing to disclose material facts about a property that the purchaser is unlikely to discover
- Appraisers using inappropriate properties as sales comparables
- Appraisers using inaccurate zoning descriptions
- Appraisers using unverified data sources
- Appraisers using an unsupported cost approach regarding value and depreciation
- Appraisers intentionally omit negative information from market analyses
What Happens if a Complaint is Filed Against My Real Estate License?
Members of the general public can submit complaints to the Real Estate Commission against any real estate broker or salesperson. Upon receiving a complaint, the Commission will conduct an investigation.
If the Commission determines that administrative action may be necessary, the Commission’s Administrator will serve you with a formal complaint outlining the allegations. You will be required to respond to the complaint within 30 days.
Failure to respond may result in the Commission entering a default judgment, potentially leading to the suspension or revocation of your license, as well as other penalties.
Administrative Hearings
Normally, the Commission arranges a hearing within 90 days of filing the complaint. It’s important to note that you can continue to hold your license until the hearing concludes (in most cases). You must be provided with a minimum of 30 days’ notice regarding the time and location of the hearing. Additionally, the Commission is obligated to provide you with all the relevant information pertaining to the complaint.
- Communications
- Reports
- Affidavits
- Depositions
The hearing is essentially an administrative proceeding, akin to a trial, where you have the option to be represented by an attorney. Your attorney can present evidence, cross-examine witnesses, and advocate on your behalf. Following the hearing, the Commission has 15 days to issue an informal decision and 60 days to provide written notice of the ruling. Disciplinary actions that may be imposed include:
- Administrative fines of up to $10,000
- Limitation on scope of license
- No new renewals of license
- License suspension
- License revocation
Please be aware that the implementation of these disciplinary measures cannot occur until a minimum of 31 days after the Commission has officially notified you of its decision. In the event that the Commission rules against you, it is within your rights to seek a judicial review, which is akin to an appeal, of the decision. It is important to note that if your license is revoked, you will be ineligible for a new license for a period of at least one year. Contact our Las Vegas real estate license defense attorney for more information about how we can help.
Potential Penalties
Real estate brokers and salespeople can be subject to disciplinary action by the Nevada Real Estate Commission for a variety of offenses, including but not limited to:
- Obtaining a license by fraudulent means,
- Making a material misrepresentation,
- Gross negligence or incompetence,
- Refusing to sell property to someone due to prejudice, and/or
- Deceitful, fraudulent, or dishonest dealings
The Commission holds administrative hearings to ascertain the occurrence of misconduct. Possible penalties encompass:
- A $10,000 fine, and/or
- A suspension, revocation, or limitation of the scope of your real estate license
If you are involved in administrative proceedings with the Commission, it is recommended that you reach out to our experienced Las Vegas real estate license defense lawyer. We can conduct an independent investigation and provide representation during the hearing. This will ensure that your interests are effectively safeguarded.