§ 5-20.5-14 - Revocation, suspension of license – Probationary period – Penalties.
SECTION 5-20.5-14
§ 5-20.5-14 Revocation, suspension oflicense – Probationary period – Penalties. – (a) The director may upon his or her own motion, and shall, upon the verifiedcomplaint, in writing, of any person initiating a cause under this section,ascertain the facts and, if warranted, hold a hearing for the suspension orrevocation of a license. The director has power to refuse a license for causeor to suspend or revoke a license or place a licensee on probation for a periodnot to exceed one year where it has been obtained by false representation, orby fraudulent act or conduct, or where a licensee, in performing or attemptingto perform any of the acts mentioned in this chapter, is found guilty of:
(1) Making any substantial misrepresentation;
(2) Making any false promise of a character likely toinfluence, persuade or induce any person to enter into any contract oragreement when he or she could not or did not intend to keep that promise;
(3) Pursuing a continued and flagrant course ofmisrepresentation or making of false promises through salespersons, otherpersons, or any medium of advertising, or otherwise;
(4) Any misleading or untruthful advertising;
(5) Failing to deposit money or other customers' fundsreceived by a salesperson upon execution of a purchase and sales agreement;
(6) Failing to preserve for three (3) years following itsconsummation records relating to any real estate transaction;
(7) Acting for more than one party in a transaction withoutthe knowledge and consent, in writing, of all parties for whom he or she acts;
(8) Placing a "for sale" or "for rent" sign on any propertywithout the consent of the owner, or his or her authorized agent;
(9) Failing to furnish a copy of any listing, sale, lease orother contract relevant to a real estate transaction to all signatories of thecontract at the time of execution;
(10) Failing to specify a definite termination date that isnot subject to prior notice, in any listing contract;
(11) Inducing any party to a contract, sale, or lease tobreak that contract for the purpose of substitution in lieu of that contract anew contract, where that substitution is motivated by the personal gain of thelicensee;
(12) Accepting a commission or any valuable consideration bya salesperson for the performance of any acts specified in this chapter, fromany person, except the licensed real estate broker with whom he or she isaffiliated;
(13) Failing to disclose to an owner his or her intention ortrue position if he or she directly or indirectly through a third party,purchases for him or herself or acquires or intends to acquire any interest inor any option to purchase property which has been listed with his or her officeto sell or lease;
(14) Being convicted in a court of competent jurisdiction ofthis or any other state, or federal court, of forgery, embezzlement, obtainingmoney under false pretenses, bribery, larceny, extortion, conspiracy todefraud, or any similar offense or offenses, or pleading guilty or nolocontendere to any such offense or offenses;
(15) Violating any rule or regulation promulgated by thecommission or the department in the interest of the public and consistent withthe provisions of this chapter;
(16) In the case of a broker licensee, failing to exerciseadequate supervision over the activities of his or her licensed salespersonwithin the scope of this chapter if the broker has knowledge of any misdeeds ofhis or her sales staff;
(17) Failing, within a reasonable time, to provideinformation requested by the commission or director as the result of a formalor informal complaint to the commission or director which would indicate aviolation of this chapter;
(18) Soliciting, selling, or offering for sale real propertyby offering free lots, or conducting lotteries or contests or offering prizesfor the purpose of influencing a purchaser or prospective purchaser of realproperty;
(19) Paying or accepting, giving or charging any undisclosedcommission, rebate, compensation, or profit or expenditures for a principal, orin violation of this chapter;
(20) Any conduct in a real estate transaction, whichdemonstrates bad faith, dishonesty, untrustworthiness, or incompetency;
(21) Failing to have all listing agreements in writing,properly identifying the property and containing all of the terms andconditions of the sale, including the commission to be paid, the signatures ofall parties concerned, and a definite expiration date in that contract, whichshall not require an owner to notify a broker of his or her intention toterminate. An exclusive agency listing or exclusive right to sell listing shallbe clearly indicated in the listing agreement;
(22) Accepting a listing based on "net price". In cases wherethe owner wishes to list in this manner, the agreed-upon commission is addedand listings made in the usual manner;
(23) Negotiating or attempting to negotiate the sale,exchange, or lease of any real property directly with an owner or lessorknowing that the owner or lessor has an outstanding exclusive listing contractwith another licensee covering the same property, except when the real estatebroker or salesperson is contacted by the client of another broker regarding areal estate service, and the broker or salesperson has not directly orindirectly initiated those discussions, they may discuss the terms which theymight enter into future agency agreement or they may enter into an agencyagreement which becomes effective upon termination of any existing exclusiveagreement; or they may enter into an agreement for other real estate servicenot covered by an existing agency relationship;
(24) Accepting an exclusive right to sell or lease or anexclusive agency and subsequently failing to make a diligent effort to sell orlease the listed property;
(25) Advising against the use of the services of an attorneyin any real estate transaction;
(26) Representing to any lender or any other party ininterest, either verbally or through the preparation of a false sales contract,an amount in excess of the true and actual sales price;
(27) Submitting to an owner a written offer to purchase orlease unless that offer contains the essential terms and conditions of theoffer including the manner in which the purchase price is to be paid, and ifthat offer is contingent upon certain conditions, those conditions shall beclearly stated in the offer, or unless the offer is conditioned upon the laterexecution of a complete agreement for sale;
(28) Wrongfully failing to refund to the buyer any sums ofmoney paid by the buyer and held by the broker when the seller wrongfully failsor is unable to consummate a transaction and the buyer is ready, willing, andable to do so;
(29) Advertising to sell, buy, exchange, rent, or lease theproperty of another in a manner indicating that the offer to sell, buy,exchange, rent, or lease that property is being made by a private party notengaged in the real estate business, nor insert advertisements in anypublication containing only a post office or other box number, telephonenumber, or street address. No salesperson shall advertise the property ofanother under his or her own name;
(30) Failing upon termination of his or her employment with areal estate broker and upon demand by the broker to immediately turn over tothe broker any and all information and records obtained during his or heremployment whether the information or records were originally given to him orher by his or her employer or copies from the records of that employing brokeror acquired by the salesperson during his or her employment;
(31) Offering, promising, giving or paying directly orindirectly, any part or share of his or her commission or compensation arisingor accruing from any real estate transaction to any person who is not licensedas a real estate broker, but who by law should be licensed, or who is not areal estate salesperson employed by that licensee;
(32) Soliciting the sale, lease, or the listing for sale orlease, of residential property on the ground of loss of value due to thepresent or prospective entry in the neighborhood of a person or persons ofanother race, religion, or ethnic origin, nor shall he or she distribute orcause to be distributed material or make statements designed to induce aresidential property owner to sell or lease his or her property due to thechange in neighborhood;
(33) Failure of the employing broker to notify the director,in writing, within ten (10) days of the termination of a salesperson'semployment of contractual relationship;
(34) Failure to report all written offers to the owner priorto the signing of a purchase and sale agreement by the owner; or
(35) Failure of agents to provide buyers and sellers of realproperty with disclosure regarding real estate agency relationships asspecified in chapter 20.6 of this title; or
(36) Failure of an associate broker to inform the public ofassociate broker status by not listing associate broker on business cards andcorrespondence or by informing the public that his or her status in the realestate firm is that of broker.
(b) The director is authorized to levy an administrativepenalty not exceeding one thousand dollars ($1,000) for any violation underthis section or the rules and regulations of the department of businessregulation.