If you want to work as a real estate agent in Pennsylvania, you need to obtain and maintain a license. To secure a real estate license, you need to meet certain educational requirements and pass a test. You also need to pass a background check and adhere to a code of ethics established by the individual professional organizations that you belong to in addition to those set by the state.
All of that time and effort invested into securing the necessary license could go to waste if you lose your real estate license for disciplinary reasons. People can face disciplinary hearings and the loss of their real estate licenses due to negligence and misconduct. They could endure adverse actions initiated by a client’s complaint.
What are two of the most common reasons that former clients make complaints that could cost you your license?
They blame you for perceived economic losses
Perhaps you represented a seller and helped them establish an asking price based on the condition of the property and the sale price of other homes nearby. If they later talked to a different real estate professional who exaggerates what the property is worth or their neighbor cells their home for tens of thousands of dollars more, they could feel like you deprived them of a higher sale price.
On the other hand, maybe you represented a buyer who was desperate to have an offer accepted when the market was very competitive. As prices drop because the market cools, they may blame you for their enthusiasm when making an aggressive offer and want to hold you accountable because they are now overextended.
They feel like you overlooked something
If you fail to warn sellers about certain liabilities or if you took buyers on a tour of a home and didn’t notice obvious defects, your clients might blame you for those omissions or errors. Typically, you will have professional insurance that protects against errors and omissions, but the client may still be angry enough to try to damage your career. They could report you to the licensing board and create a difficult situation for you that results in a hearing where you could lose your license.
When you face such complaints or a disciplinary hearing, you will typically have the option of Defending yourself you can also work with an attorney to protect your license against accusations of professional misconduct or negligence. Protecting your professional licensure is the only way to guarantee that you can continue in your established profession when you face disciplinary action.