Real Estate Express Unit 2 Flashcards
What are the conditions under which the Commission will investigate a complaint against a licensee?
The Louisiana Real Estate Commission must investigate written signed complaints, but may conduct any investigation it deems appropriate, even without a complaint.
How does the Real Estate Commission use the subpoena in its investigations of possible wrongdoing in real estate transactions?
The subpoena is summoning power, so any persons involved in a dispute can be forced to come before the Commission to give their testimony or send written depositions about what happened or what they know. The Commission also subpoenas licensees’ relevant documents to help decide a case.
Name two kinds of disputes that the Commission will never become involved in.
The commission will not hear complaints about commission disputes nor about those involving a non-compete agreement. The former must be handled by the disputants and the latter in a court of law.
When are there informal adjudicatory hearings as opposed to formal adjudicatory hearings?
The hearing examiner and the executive director of the Commission can decide to proceed informally. This decision is reinforced if the accused licensee admits guilt, agrees to accept punishment for it, and waives appellate rights. When the accused denies any guilt, a formal hearing ensues.
What are the key differences in proceedings between informal and formal adjudicatory hearings?
In informal hearings, there are no witnesses, no evidence, and statements made cannot be used in later proceedings without everyone’s consent. In formal hearings, evidence and witnesses are presented.
What is the function of the consent order in the hearing process?
This document stipulates the accused licensee’s guilt and acceptance of the sanctions or punishments of the Commission. With a consent order, the licensee agrees to the imposition of disciplinary sanctions without insisting on a formal administrative hearing. The licensee also waives the right of appeal.
Describe the appeal process available to a licensee who has been found guilty of breaking real estate law by the Real Estate Commission.
The licensee can ask the Commission for a re-hearing, reopening, or reconsideration of the Commission’s decision in the formal adjudicatory hearing. The Commission’s attorney decides whether or not the request merits judicial review. But even if the Commission denies a rehearing, the licensee can petition the judicial court for a review. If it does, a trial is conducted and a final decision obtained. The court will consider only questions of law in the Commission’s decision, and affirm or deny the decision.
What is a stay of enforcement and when might it be applied in the adjudication process?
This is a court order that postpones enforcement of Commission order against a licensee. It may be granted by a judge while a judicial review decides whether or not to overturn the Commission’s decision, but granting is not automatic. The defendant must show the court that staying the enforcement will not harm anyone.
What punishments may the Real Estate Commission impose on a licensee found guilty of a License Law violation?
They may have to pay the administrative costs of the proceedings against them. They may have their licenses suspended or revoked. They may have criminal charges started against them by being arrested or indicted. They may be fined up to $2,000 and imprisoned for up to five years.
Why is the revocation of a license a more serious punishment for a supervising broker than for a salesperson or associate broker?
The latter lose only their own licenses, while the former loses not only his or her own license but causes all those sponsored by the broker to lose theirs as well.
List the circumstances under which a licensee is required to notify the Commission of a legal action involving the licensee.
The circumstances are:
Issue of final judgment in a matter arising from a real estate transaction in which the respondent was acting as a licensee.
Prosecution, arrest, or indictment arising from a real estate transaction in which the respondent was acting as a licensee.
Final conviction for forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, theft, or any other felony, or any crime involving moral turpitude.
Institution of bankruptcy proceedings if holding client funds.
Who is responsible for conduct an informal hearing against a licensee?
A hearing officer appointed by the executive director
When a sponsoring broker has his or her license revoked, what must he or she do within 72 hours?
Return his or her license and the licenses of all his or her licensees to the Commission.
Which court is responsible for handling appeals of Commission findings?
The 19th Judicial District Court in East Baton Rouge Parish
If an accused licensee admits guilt at an informal hearing, what will the hearing officer normally do?
Execute a consent order stating the sanctions the licensee has agreed to accept.
