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How employing unlicensed people impacts a real estate license

| Mar 18, 2021 | Licensure Defense |

In Alaska, people who work in the real estate industry will understand the importance of proper licensing. It is a fundamental aspect of functioning in the highly competitive atmosphere of commercial and residential real estate. If there is a threat to the license for a misstep or alleged violation, it can sabotage all the hard work a person has done to build their business and achieve their current position. In some cases, there was alleged wrongdoing that violated the law. In others, it was simply an unintentional gaffe. One example is if the licensed real estate person employs unlicensed personnel.

Real estate licenses can be revoked or suspended for employing unlicensed people

It is imperative to understand the law for this issue. If the licensed person retains an individual to sell real estate or as a broker who does not have the proper licensing, the employer may be suspended. If a person not named on the seller’s license provide a commission as a real estate seller and perform the functions listed under licensing law, it can also result in a suspension.

Some licensed real estate people might delegate certain tasks to others. If that underling is not licensed to perform those duties, it can jeopardize the real estate license. The following would be considered violations if an unlicensed person did them: discussing the property with the owner or those who are licensed; showing the property for rental or sale; moving forward with the sale terms or negotiating for the property; having customers sign agreements to buy or lease the property; making an offer to buy a property; calling or visiting property to consider buying or selling; reading information to reply to those calling regarding properties.

Defending the license may require legal assistance

These accusations can be troublesome and do a significant amount of damage to a real estate person’s career and livelihood. There are many avenues to defend against these allegations and it is wise to have legal advice from the start. Perhaps there was an administrative mistake, the employee claimed to have credentials he or she did not have, or the license holder made an error. Before accepting the penalties, consulting with experienced professionals who understand license defense may be crucial to seek an acceptable resolution and avoid the worst-case scenario.