California Department of Real Estate: Disciplinary Action

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: If a licensee who has a “restricted” license is convicted of a “substantially related” offense, the Department may issue an interim order, without a hearing, suspending a restricted licensee's license rights if the license rights are not met. terms and conditions of the “restricted” license.
  • 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.

Legal and Tax Disclaimer

Please be advised that the content presented in this blog is for informational purposes only and should not be construed as legal or tax advice. The articles and information provided here are written from the perspective of a real estate agent affiliated with Keller Williams, and do not represent legal or tax counsel.

As the author, I am a licensed real estate professional under Keller Williams, holding Brokerage DRE License Number: #02197031. However, it is important to note that my expertise is in the field of real estate, and not in legal or tax matters. The insights and opinions shared on this blog are based on my experiences and knowledge in the real estate industry and should be treated as general guidance rather than definitive legal or tax advice.

For specific legal or tax concerns relating to any real estate transactions or investments, readers are strongly encouraged to consult with a qualified attorney or tax advisor who can provide tailored advice based on your individual circumstances and the latest legal and regulatory requirements.

The information on this blog is provided "as is" without warranty of any kind, and I, along with Keller Williams and its affiliates, disclaim all liability for any loss, damage, or misunderstanding arising from reliance on the information contained herein.

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