Real estate salespersons, brokers, and other licensees work hard for their positions. It can be overwhelming and confusing when facing an investigation or accusation of wrongdoing. That’s why it’s important to know about real estate license discipline in Los Angeles and the actions you should take. It is also crucial to hire a California real estate license defense lawyer to protect you.
About Us
Century Law Group LLP has spent years assisting the people of Los Angeles, Orange County, San Diego, and other cities throughout California with their real estate license defense cases. Our team of California real estate license defense lawyers has over 50 years of combined legal experience that we can use to fight for your career. Our founding attorney is Edward Lear. He is well-respected in the local legal community and has a 10.0 Superb Avvo rating.
Overview of DRE Investigations
If you are one of the 433,510 California real estate licensees, it can be frightening to have your license threatened. In Fiscal Year 2023-2024, the Department of Real Estate (DRE) received 5,342 formal complaints, resulting in 261 citations worth $424,030 paid to victims, 139 license suspensions, and 268 license revocations.
DRE investigations are initiated when a formal complaint is submitted to the department. These are typically made by formal clients, but they can be filed by any party. Common reasons for an investigation include:
- Mismanagement of funds
- Misrepresentation of a property
- Negligent or unlicensed activity
- Conviction for a crime that reflects poorly on the licensee’s fitness
- Inappropriate conduct
Real estate disciplinary hearings are normally handled through the Office of Administrative Hearings (OAH), with Los Angeles cases heard at the Junipero Serra State Office Building, located at 320 West Fourth Street.
What to Do When Your Real Estate License Is Threatened
The actions you take in the days, weeks, and months after a DRE investigation is launched can make a major difference in your career. The following are a few steps to take when your real estate license is threatened:
Cooperate With the Investigative Team
In most cases, the DRE will send a letter or request for information before filing a formal accusation. It’s crucial to cooperate with the investigative team and provide any information they ask for. A willingness to work with the department can be beneficial later.
Respond to the Formal Accusation
Once the DRE makes a formal accusation of wrongdoing, it’s important to act quickly. You must give a notice of defense within fifteen days of being served to receive an administrative hearing. Failure to do so can result in a default decision, with the case continuing without your input. Your notice of defense should name your right to an administrative hearing, and you should refrain from including unnecessary explanation or details.
Do Not Contact Related Parties
People who have been accused of wrongdoing often wish to communicate with the accusing party and try to settle the matter. Any contact with individuals related to your case not only won’t stop an investigation, but it can also be seen as intimidation or coercion, which can harm your chances.
Avoid Public Statements
Avoid making any public statements about the case during the investigation or after a formal accusation. You may have the urge to defend yourself on social media or to colleagues, but even innocuous comments can be used against you by the investigative team.
Hire a Real Estate License Defense Lawyer
A DRE investigation can be daunting to manage on your own. Hire a real estate license defense lawyer to handle your case—just as attorneys facing State Bar complaints must seek experienced counsel to defend their law licenses from malpractice and ethics allegations. Your Los Angeles real estate license defense attorney can respond to the investigative team, draft your notice of defense, and assist in preparing for your administrative hearing. They can represent you in all hearings and interviews related to your real estate license defense case.
FAQs
Do You Need a Lawyer for a DRE Investigation in California?
California’s real estate license defense laws do not require you to hire an attorney when accused or investigated by the DRE, but doing so can be beneficial to your case. Your real estate license defense attorney can:
- Respond promptly to any accusations.
- Collect supporting evidence.
- Build your defense.
- Represent you in all related hearings.
- Avoid easy mistakes that may jeopardize your chances.
How Long Does a DRE Investigation Take to Resolve in California?
How long your California DRE investigation takes to resolve depends on the:
- Extent of the alleged wrongdoing
- Complexity of the case
- Stage at which the investigative team makes its decision
- Department’s workload
An investigation initiated over a minor infraction with an early dismissal may take a month or two, while one involving serious misconduct that requires an administrative hearing and appeals process could take years to resolve.
How Much Does a Real Estate License Defense Attorney Cost in California?
How much your California real estate license defense attorney may cost is based on:
- The severity of the allegations against you
- Whether an administrative hearing and appeal are necessary
- The work hours your case requires
A lawyer hired for a DRE investigative interview and to draft a reply letter typically costs less than representation for an entire disciplinary case. In your initial consultation, Century Law Group LLP can provide an estimate for your final legal bill.
How Can a Realtor Lose Their License in California?
A realtor can lose their license in California if a DRE investigation and administrative hearing finds conclusive evidence of wrongdoing that violates Business and Professions Code Statute 10177. A few examples in which a realtor may have their authorization revoked include:
- Widespread misrepresentation of properties to clients
- A criminal conviction
- Engaging in fraudulent means to obtain a license
Speak With a Los Angeles Real Estate License Defense Attorney Today
Century Law Group LLP understands how frightening a DRE investigation can be, but you don’t have to go through it alone. We can use our decades of combined legal experience, skills, and knowledge to represent you through this difficult time.
Contact us today to schedule your initial consultation, where we can discuss the accusations you face and explore potential legal strategies. You may also visit our Los Angeles office, located on West Century Boulevard, a block west of the 405 and a few blocks east of LAX.
