When people get their real estate license, they may be unable to picture a day when authorities revoke this license. However, there are situations that can cause people to lose their real estate license.
Real estate agents can lose their licenses for several different reasons.
Engaging in fraud
According to the Minnesota Legislature, fraudulent practices can cause authorities to revoke a license. These fraudulent practices can take many forms. Some people may state that they are members of certain real estate organizations when they are not associated with the group. They may also represent numerous people in the same transaction but conceal this from all the people involved. Additionally, some real estate agents might ask their clients to pay a commission that they are not supposed to receive.
Asking for certain requirements
Real estate agents also risk losing their license if someone thinks they added unethical requirements to the contract. Someone may tell their clients they have to work with a certain closing agent or lender, for example. Additionally, some sellers might have an exclusive contract with a different real estate company as they sell their property. If a real estate agent ignores this contract and tries to work with the property owner, this kind of behavior may be grounds for license revocation.
Handling the situation
If people think that authorities are revoking their real estate license without proper cause, they need to take action. The Minnesota Legislature says that real estate agents can attend a hearing to demonstrate why the revocation should not be valid. At this hearing, people can usually present evidence that shows they are acting within Minnesota’s real estate guidelines.