Much like any profession requiring you to have a professional license, it takes a lot of money and hard work to secure a real estate one. You wouldn’t want to do anything that would jeopardize it.
Some situations are likely to result in the Kentucky Real Estate Commission (KREC) suspending or revoking your real estate license, though. Know what these are to ensure that you don’t lose your right to practice in your profession.
Being convicted of a crime
Realtors often face allegations of engaging in mortgage fraud — and a conviction could be fatal to your career. White-collar offenses, including fraud, identity theft or forgery and violent ones such as domestic violence, rape or assault, are likely to result in deprivation of your license, as well. Mishandling funds could also fall into this category. Any or all of these crimes (and others) could put you at risk of losing your real estate license.
You can rest assured that even if you don’t disclose your conviction as you’re required to do so, KREC will find out as they regularly perform background checks on both applicants and license holders.
Failures to make disclosures
You must account for potential conflicts of interest when agreeing to represent a client in their transaction. Your failure to disclose your financial interests in a transaction could result in a suspension or revocation of your realtor’s license. So too, could your failure to make certain property disclosures (such as major flaws within a home’s HVAC system or plumbing or problems with lead paint, as required by law.
The flip side of the coin applies, too. Any violations of a buyer or seller’s privacy, such as your disclosure that you’re working with a well-known individual or that someone belonging to the LGBTQ community, could jeopardize your realtor’s license.
Violations of fair housing laws
A large portion of the classes you take before securing your real estate license aim to ensure that you know the laws and regulations you must abide by in the business. One of these is the Fair Housing Act, which prohibits you from discriminating against individuals based on their inclusion in certain protected classes related to gender, gender identity, sexual orientation, race, religion and national origin. Failures in these areas will definitely put your license in danger.
Take KREC letters seriously. If they’ve notified you that you’re being investigated you can’t afford to sit on your hands and hope that everything will work out okay. Find out more about your legal options.