If you work in real estate or intend to do so, you have undoubtedly heard tales of agents having their licenses revoked. Although it sounds intense, it’s not always that way.

The process of suspending licenses is intended to maintain industry fairness and professionalism. However, who makes that call in reality? Furthermore, what actually occurs when a hearing is set?

This article explains everything in simple terms—no technical legalese—so you know exactly how it all works and what to anticipate if you ever find yourself in that circumstance.

What Exactly is License Suspension?

First, let’s get this out of the way. An agent’s licence is not permanently revoked when it is suspended. It simply indicates that the agent is prohibited from engaging in real estate-related activities for a specific amount of time.

Consider it a kind of time-out. During that time, you are not allowed to purchase or sell real estate, and doing so could put you in more serious trouble. Unlike a revocation, which results in the total loss of your licence, a suspension is serious but not always permanent.

What Causes a Real Estate License Suspension?

There are several reasons why this could occur, including:

• Lying or omitting crucial information on documents

• Misusing client funds

• Not finishing the necessary coursework

• Violating state real estate regulations

• Not disclosing a criminal accusation or conviction

Most of the time, a client, broker, or even another agent notices the problem and reports it to the appropriate authorities. That begins the entire investigation process, which may result in a hearing.

Who Really Decides?

The short answer is the real estate regulatory agency in your state. This organisation may be referred to as the Department of Real Estate, the Real Estate Commission, or another name depending on where you live. Each state in the US has its own.

These government-run agencies are responsible for granting real estate agent licenses and ensuring that everyone complies with the law.

A few instances are:

• California Department of Real Estate (CalDRE)

• The Florida Real Estate Commission (FREC)

• The Texas Real Estate Commission (TREC)

• Department of State, Division of Licensing Services, New York

These commissions look into complaints. They proceed with a formal hearing if they discover sufficient proof that something went wrong.

What Causes a Hearing for a License?

Hearings don’t happen at random. Usually, the trigger is obvious. This is how it usually goes:

1. A grievance is filed. This could originate from a rival agent, a client, or a broker.

2. An inquiry is started. The commission investigates the incident. They might interview witnesses, request documents, or even conduct transaction audits.

3. It is decided to set up a hearing. They will proceed if there is sufficient concern.

A temporary suspension may be imposed prior to the hearing in certain severe circumstances, particularly if the public is endangered by the agent’s actions.

Who is in Charge of the Hearing?

Let’s now discuss the hearing itself. These are still formal legal proceedings, but they are not the courtroom dramas you see on television. Those in charge of the operation may include:

1. Judges of Administrative Law (ALJs)

These judges are qualified professionals who hear cases pertaining to professional licenses and state laws. They examine the evidence, hear both sides, and render a just decision.

2. Members of Real Estate Boards

In certain states, the hearing may be presided over by a group of real estate specialists. These are experts in the field who assess if the agent’s actions were inappropriate.

3. Officers of Hearing

In certain states, the hearing is conducted by hearing officers, who function similarly to referees. It is their responsibility to maintain order and equity. The purpose of the hearing, regardless of who conducts it, is to allow all parties to present their case.

What Takes Place at the Hearing?

Here’s a brief summary of what usually occurs:

• The charges are explained by the commission or legal representative.

• The agent makes their defence (or their attorney does).

• Emails, contracts, and testimonies are examples of evidence.

• Witnesses may be asked to provide their account of what happened.

• Determining what actually transpired and whether the agent broke any real estate laws or regulations are the main objectives.

The decision-makers will ultimately decide on the appropriate disciplinary measure. That might be:

• Suspending the licence for a predetermined amount of time

• Probation of the agent

• Needing additional instruction or training

• Removing the licence completely (in extreme circumstances)

Can a Suspension Be Appealed?

Yes, you can in most cases. There is frequently a way to appeal if the agent feels that the decision was incorrect or unfair. However, there is typically a short window of time—sometimes as little as 30 days—to submit an appeal.

This procedure may entail filing new paperwork or going before a different panel or court. Here, having a competent lawyer is very beneficial.

Why This Is Important (Even If You’re Not in Trouble)

Agents in hot water are not the only ones who should understand this process. You must understand what can result in a suspension and how to prevent one if you are a licensed agent or intend to become one.

Your ticket to employment is a licence. Your career will be put on hold if you lose it.

Here are some pointers to be cautious:

1. Be truthful and forthright in all of your documentation.

2. Always abide by the regulations and updates set forth by the state.

3. Stay current with your continuing education.

4. Don’t handle client funds unless you are experienced.

5. When in doubt, ask questions rather than speculating.

Bottom Line

The real estate licensing authority in your state has the sole authority to determine whether a real estate agent’s license is suspended. Judges or other officials with the necessary training are involved in the process, which may be carried out by a commission or department.

To ensure that everything is fair and done according to the book, they follow a precise set of procedures: investigation, hearing, and decision.

You’re in a good position to completely avoid these problems as long as you remain informed, behave morally, and continue your education. Treat your licence with the respect it deserves.