Kansas Real Estate Agents: Seven Deadly Sins
Each year thousands of real estate agents and brokers across the country find themselves in hot water with their state licensing boards. Do not let your real estate license become a victim of bad business practices or a careless mistake. Learn from the mistakes of others to ensure the longevity of your license and your professional future. The following are seven mistakes that can place a real estate agent’s license in peril:
1) Involvement in Mortgage Fraud: Mortgage fraud typically occurs when a lender is duped into making a loan the lender would not otherwise made but for some type of fraud. This fraud can occur when the agent manipulates the apparent value of the property so that the bank makes a loan in excess of the real value of the property or to a buyer that is otherwise unqualified. Fraud of this nature cannot only cost an agent of his or her license but also land the agent in jail.
2) Conviction of a Crime: Most state licensing boards have laws that restrict persons with felony and other criminal convictions from maintaining a real estate license. In Kansas, for instance, the Real Estate Commission can deny a license to any person that has been convicted of or pled guilty to a crime which reflects upon the individual’s honesty, integrity, trustworthiness or competence to conduct real estate transactions.
3) Misrepresentation: Clients put trust in real estate agents to find the right property and then to guide them through the real estate buying process. Actions by an agent such as misrepresenting facts, omitting details, or flat out lying in order to induce a buyer to make a transaction is unethical and can result in discipline and/or loss of license.
4) Mishandling a Client’s Funds: The fastest way to lose your license is to play with or mishandle a client’s money. Each year agents lose their licenses as the result of “borrowing” money from client and bad bookkeeping. The best way to avoid this problem completely is to place the client’s money in a trust account or in escrow with the title company. Also, do not take any commissions until the transaction has closed.
5) Playing Attorney: Avoid the temptation to try to be and do everything for your client, especially if it is outside your realm of expertise. Real agents find themselves flirting with danger when they attempt to draft or amend contracts and other legal documents. Ignorance is no excuse when it comes to actions that constitute practicing law without a license.
6) Not meeting licensing requirements: The easiest way to avoid putting your license in jeopardy is to make sure that you have met all of your state’s licensing requirements. Each year people lose their license for failing to pay the required fees and take the necessary continuing education classes.
7) Incompetence: If you are not sure about a particular area—get help, do not opt to just “wing it.” Losing your license over a mistake that could have been avoided by picking up the phone and contacting a colleague or professional organization is just careless.
If you are being investigated by the Kansas Real Estate Commission you need an experienced professional license defense attorney. I invite you to contact the Sanger Law Office at 785-979-4353 for a free and completely confidential consultation. My team of seasoned professionals a Sanger Law Office will fight for your professional license and protect your livelihood.