Here are some common issues that typically lead to disciplinary action in Minnesota real estate practice before the Minnesota Department of Commerce.
- Unlicensed Practice: Operating without the proper licensing or allowing unlicensed assistants to perform duties that require a license can lead to disciplinary action.
- Misrepresentation or False Advertising: Making false or misleading statements about properties, such as concealing defects, lying about a property’s characteristics, or making false promises to buyers or sellers, can result in trouble.
- Failure to Disclose Conflicts of Interest: Real estate agents must disclose any conflicts of interest, such as representing both the buyer and seller in a transaction (known as dual agency), or owning a financial interest in a property being bought or sold.
- Improper Handling of Client Funds: Mishandling earnest money deposits, not keeping client funds in a separate escrow account, or committing other financial improprieties can lead to disciplinary action.
- Violation of Fair Housing Laws: Discriminating against buyers or sellers based on race, religion, sex, familial status, disability, or national origin is illegal under the Fair Housing Act.
- Negligence or Incompetence: Not exercising due care in carrying out professional duties can lead to problems. This includes making errors in paperwork, failing to follow through on contractual obligations, or otherwise showing a lack of competence in the profession.
- Breach of fiduciary duties: Agents owe their clients certain fiduciary duties, such as loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care and diligence. Violating any of these duties can result in sanctions.
Remember, each state has its specific laws and regulations concerning real estate practices. Always consult with a local expert or legal counsel for advice specific to Minnesota. Additionally, the Minnesota Department of Commerce would have records and statistics about common disciplinary issues among real estate agents in the state, if you need more specific information.
If you get into trouble or have been contacted by the Department of Commerce contact Fabian Hoffner for a free consultation at 612-206-3777.