Top Reasons Real Estate Agents Lose Their Licenses in California


In California, real estate agents are awarded their licenses after completing specific educational requirements as well as character requirements. All real estate licenses in California are monitored by the California Department of Real Estate. The California Department of Real Estate exists to ensure the safety of the public and promote public interests in real estate matters. The Department does this through a series of license requirements, rules, educational requirements, and enforcement of rules through license sanction and revocation. If you are a real estate agent who is facing a potential license sanction, then it is critical to speak to an experienced professional license defense attorney as soon as possible.


If you are a licensed real estate agent, then you must follow a set of guidelines to avoid sanction and potential revocation of your license. It is the job of the California Department of Real Estate to only license people who are not a danger to the public through the business of real estate. The following are the eight most common reasons why real estate agents lose their licenses:

  1. Breaching the confidentiality of a client – The personal information of your client is important and is protected by real estate agent regulations. A disclosure of personal information can lead to the loss of a real estate license. 
  2. Failing to disclose a conflict of interest – If a real estate agent has a financial interest in a property, then that must be disclosed to all parties.
  3. Improperly handling of client money – All client money must be handled according to real estate guidelines.
  4. Criminal convictions – Real estate agents can lose their licenses over various criminal convictions and can also be denied a license after an initial application.
  5. Mortgage fraud – Fraud of any kind can result in the loss of a license and criminal charges.
  6. Failing to cooperate with a regulatory investigation – A failure to appropriately cooperate with the California Board of Real Estate during an investigation can result in license sanction and loss.
  7. Fair Housing Act (FHA) violations – Any discrimination based on race, sex, color, national origin, religion, familial status, or disability can result in license sanction and loss.
  8. Failure to complete licensing requirements – If a real estate agent does not complete required continuing education (CE) courses, then his or her license can be put on hold until the requirements are completed.

These are not all of the reasons why someone can lose his or her real estate license in California. In many cases, a real estate license can be reinstated after revocation but can require several steps. If you have legal questions, then call us at The S.J. Harris Law Office so we can help!


The S.J. Harris Law Office is proud to offer FREE 30-minute consultations to all prospective clients. We understand that state-licensed professionals require representation that values discretion and privacy. Anything discussed during a consultation will be protected by the attorney-client privilege. At S.J. Harris Law, we put our focus into preserving three things; your license, your reputation, and your future. Let our experience go to work for you today. Call us at (310) 361-8585 or contact us online for a free consultation.

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When dealing with these complex issues, you need legal representation that has a long track record of success in these types of cases. Scott Harris and the rest of our team at S J Harris Law will be ready to help you pursue any option available that allows you to keep your license and continue working, no matter what industry you are in.


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