It is essential that integrity and compliance with laws are maintained to ensure fair and ethical transactions. The Department of Real Estate or DRE has the authority to take disciplinary action when violations of the Real Estate Law or the Subdivided Lands Law are identified. In this article, we will explore the different types of disciplinary actions that the DRE can take in response to such violations.

Citations, orders, fines (Citations, orders, fines)

The Commissioner has the authority to issue a citation containing a correction order and/or to impose a fine in case of violation of the Real Property Law or the Parceled Land Law. This subpoena may be directed to a person or entity, whether or not they are licensed by the Department. The subpoena will specify the time allowed for compliance; Failure to comply with the correction is grounds for additional sanctions.

For licensed violators, the maximum fine for a citation is $2,500, even if the citation lists more than one violation. For unlicensed offenders, a separate citation may be issued for each unlicensed act committed.

Voluntary surrender

A licensee may petition the Commissioner to accept voluntary surrender of his or her real estate license or license fees. By making this request, the licensee agrees that all statements and allegations contained in the charge are true and correct. A licensee who has voluntarily surrendered his or her license may only reapply 7through a reinstatement petition.

Suspension and revocation

The Commissioner has the authority to revoke or suspend a license or allow a licensee to pay a monetary fine of up to $250 per day of deferred suspension, with a total limit of $10,000 per decision. Violations can also be considered misdemeanors that carry fines of up to $10,000 and even imprisonment for six months.

The Commissioner has full powers to regulate and control the issuance and revocation of licenses, whether temporary or permanent. Reasons for suspension or revocation may include:

• The knowing commission of a violation of the code or when the person should have known of the violation.
• When the violation has caused material harm to the public.
• If the accused person has been convicted of a crime related to fraud.
• When the person has been found liable in a civil action for a crime related to fraud.

While suspended or disqualified, the licensee must cease all business activities requiring a real estate license.

Guilty of a crime

• The Department may automatically suspend a license during any period that the licensee is incarcerated after being convicted of a felony. The Department must notify the licensee of the suspension and his or her right to a hearing.
• In all other cases, the Department must file a formal charge against the licensee describing the acts or omissions that warrant discipline.
• Upon receipt of the charge, the licensee has the option of defending against the charges in an administrative hearing before an Administrative Law Judge.
• Exception: si un titular de licencia que tiene una licencia «restringida» es condenado por un delito «sustancialmente relacionado», el Departamento puede emitir una orden provisional, sin una audiencia, que suspenda los derechos de licencia de un titular restringido si no se cumplen los términos y condiciones de la licencia «restringida».
• All criminal convictions are subject to review by the Department for issuance, denial or discipline of licenses.

Monetary fine

Licensees may request a monetary fine in writing at any time after a charge is filed and before the effective date of a decision.