When Can a Real Estate Agent Face Discipline to Their License?

 Posted on December 29, 2023 in Chiropractor/ Physical Therapist License Defense

Real estate agents play a crucial role in helping people and businesses buy and sell properties. They are responsible for guiding clients through the complex process of real estate transactions, ensuring that all legal requirements are met while protecting their clients' best interests at all times. However, like any profession, real estate agents must adhere to ethical standards and follow specific rules and regulations.

The Illinois Department of Financial & Professional Regulation (IDFPR) oversees the licensing and regulation of real estate professionals. The IDFPR is tasked with ensuring that licensed agents operate within the bounds of the law and maintain professional conduct. In some cases, the Illinois Real Estate Administration and Disciplinary Board may take disciplinary action against real estate agents who have committed violations or failed to behave in a professional, ethical manner. A real estate agent who is facing possible discipline can work with an experienced attorney to determine what steps they can take to protect their license.

Grounds for Disciplinary Action

A real estate agent can face disciplinary action if they engage in misconduct or violate any laws or regulations set forth by the IDFPR. Illinois law details the grounds for discipline against real estate agents. Some common reasons for disciplinary action against real estate licenses include:

• Fraudulent representation: Real estate agents must always provide accurate information to their clients. Making false statements about a property's condition or value, misrepresenting facts about a transaction, or concealing material information can lead to disciplinary action.

• Negligence: Real estate professionals have a duty to exercise reasonable care when representing their clients. Failing to disclose known defects in properties or neglecting important details during transactions can result in disciplinary actions.

• Breach of fiduciary duty: Real estate agents owe their clients duties such as loyalty, confidentiality, full disclosure, accountability, and avoidance of conflicts of interest. Breaching these duties by putting their personal interests ahead of their client's interests can lead to severe consequences.

• Misappropriation of funds: Real estate agents must handle clients’ funds with the utmost care and integrity. Mishandling or misappropriating client funds, such as using money for personal expenses, can result in disciplinary action and even criminal charges.

• Unlicensed activity: Practicing real estate without a license or engaging in activities beyond the scope of a person’s license can lead to disciplinary action. It is essential for real estate agents to ensure their licenses are valid, and they must also stay up-to-date with any required continuing education.

The Disciplinary Process

If a complaint is filed against a real estate agent alleging misconduct, the IDFPR will conduct an investigation to determine if there are grounds for discipline. The process may involve reviewing relevant documents, conducting interviews, and gathering evidence.

If the IDFPR finds sufficient evidence to show that disciplinary action may be necessary, it may hold a hearing to determine whether a violation occurred, and if so, what types of discipline will be appropriate. At this hearing, the real estate agent will have the opportunity to present their case, provide explanations for the alleged violations, and advocate for solutions that will address the complaints against them and ensure that they will continue to protect their clients’ interests

If the IDFPR believes discipline is necessary, it may take a number of actions against a real estate agent. Possible steps that may be taken to address complaints or violations may include reprimands, fines, probation, or the suspension or revocation of a real estate license.

Contact a Chicago Real Estate License Defense Lawyer

If your license and your professional reputation as a real estate agent are at stake due to complaints made against you, it is crucial to seek legal representation as you determine how to defend against disciplinary action. At The Law Offices of Joseph J. Bogdan, Inc., our experienced Illinois real estate license defense attorney understands how licensing issues are handled by the IDFPR. We can guide you through the disciplinary process while working to protect your rights. We will advocate on your behalf to help ensure that you will be able to avoid serious discipline and continue working as a real estate agent. Contact us today at 630-310-1267 to schedule a free consultation.