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Real Estate License Disputes

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What Is a Real Estate License?

Real estate licenses allow a person or agency to conduct real estate transactions.  Both real estate brokers and agents are all required to be licensed if they will be conducting real estate transactions of any kind in the U.S.  Their license must be current and valid.

Each state may have different laws when it comes to qualifications and requirements for real estate licenses.  Some states allow “reciprocity agreements”, which allow a real estate professional to obtain a license in a different state. 

What Are Real Estate License Disputes?

Real estate license disputes can occur for situations such as:

  • An agent or broker is practicing without a real estate license
  • The license is expired
  • The agent or broker has made a misrepresentation regarding their license
  • Agency relationships in the transaction (for instance, if a real estate agent has hired another agent to help them)
  • There is confusion over state licensing laws

So for instance if a real estate transaction was conducted, and it’s later discovered that the agent was not licensed, there may be issue as to whether the transaction will be enforceable or not. 

What Are Some Legal Solutions to Real Estate License Disputes?

Real estate license disputes are often linked to other legal issues such as mortgage loan fraud, or various other schemes. In such cases, legal remedies may include a monetary damages award to reimburse the plaintiff for financial loss. Other remedies may include invalidating a mortgage contract or negating an entire real estate transaction. 

Many real estate disputes can be prevented by hiring only licensed professionals, and by doing a thorough check of their background and licensing credentials. In serious cases of fraud or misrepresentation, the agent can also face criminal consequences. 

Do I Need a Lawyer for Help With a Real Estate License Dispute?

Real estate licensing is a very important aspect of real estate law.  It helps ensure that professionals are qualified to perform real estate transactions, and that they are registered with the state. You may wish to hire a real estate lawyer if you need to file a lawsuit for damages.  Your attorney will be able to provide you with legal advice, and can also represent you during the actual court procedures. 

Photo of page author Jose Rivera

, LegalMatch Legal Writer

Last Modified: 06-26-2018 11:06 PM PDT

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