In Alaska, those who work in real estate and have gotten their real estate license should be fully aware of the rules with maintaining it. If there is a violation that results in a suspension or revocation, it can severely harm their career. What many real estate brokers who own their own business might not realize is that a license suspension will not only prevent them from functioning as a broker, but it will require that all employees stop working for that broker. This can create a lull in the business or destroy it entirely. Understanding this law and taking the necessary steps to avoid a suspension or revocation or to get the license back after a suspension or revocation typically always requires legal assistance.
Suspended or revoked real estate licenses must be surrendered
According to the Real Estate Commission, the real estate broker who has his or her license suspended is required to surrender it immediately. What many might not realize is that employees are also subject to termination because of whatever the broker is alleged to have done. After the broker’s license has been surrendered, even licensed brokers who are employed by the suspended broker but have not done anything to warrant a suspension could be impacted.
Employee brokers will get their licenses back from the suspended broker, but the commission requires that it receive a notification that those employees were terminated. Once the returned license has been received by the employee broker, they must make a submission to the commission within 15 days saying they have an executed notice of employment or ask for the license to be inactivated. If the employee does not adhere to these requirements, their license will be automatically suspended until doing so.
Fighting allegations of wrongdoing is crucial for a real estate business
There are many reasons why a real estate license might be suspended or revoked and a license defense is crucial. If, for example, there were allegations of misrepresentation, false statements, allowing unlicensed people to perform activities that require a license or violates the licensing laws in any other way, it can be grounds for a suspension or revocation. Not only can this harm the business in general, but it can result in a negative perception in the community. Often these allegations are connected to a real estate malpractice allegation or suit.
Any allegation of financial impropriety, fraud, embezzlement, or breach of fiduciary duty also carries potential criminal exposure. If there is any truth to such allegations, any involved licenseholders need to be prepared for serious discipline including suspension or revocation.
Regardless of the situation and accusations, crafting a defense is key. This means retaining counsel as soon as the allegation hits your desk (typically with a 20 day response deadline). There are avenues of defense that can be effective and having guidance from the outset can use them to try and achieve a positive result. Often the defense of licensing allegations is covered by your malpractice insurance.