What is a Desist and Refrain Order in Real Estate Law?
I've seen many real estate professionals get caught off guard by Desist and Refrain Orders, making it critical for anyone in the industry to understand what they are and how they work. These orders pack quite a punch in maintaining order within real estate operations.
Desist and Refrain Order: A legal command issued by the Real Estate Commissioner that requires a person or company to immediately stop specific activities that violate real estate laws. This enforcement tool helps protect consumers by halting illegal real estate practices and preventing further violations.
Understanding Desist and Refrain Orders
The Real Estate Commissioner doesn't issue these orders lightly. They come into play when someone breaks real estate laws, operates without proper licensing, or engages in fraudulent activities. Think of it as a legal "stop sign" - once you get one, you must halt specified activities immediately.
State regulatory powers give these orders their teeth. They're not just suggestions; they're legally binding commands that carry serious consequences if ignored. The moment an order arrives, the recipient must stop the listed activities and prove their compliance.
Common Triggers for Desist and Refrain Orders
I've noticed several activities that typically trigger these orders:
Running a real estate business without proper licensing
Using false advertising to attract buyers or sellers
Collecting money from clients without authorization
Splitting properties illegally
Creating fake investment opportunities in real estate
The Process
The investigation usually starts with a complaint. Someone - maybe a client or another real estate professional - notices something fishy and reports it. Investigators gather evidence, including documents, testimonies, and transaction records.
Once they have enough evidence, they issue the order. Recipients have the right to request a hearing and bring legal representation. The clock starts ticking immediately - you typically have a limited time to respond or comply.
Consequences of Violation
Breaking these orders isn't smart. The penalties can include:
Substantial monetary fines
Potential criminal charges
License revocation
Permanent damage to professional reputation
Prevention and Compliance
Smart real estate professionals stay ahead by:
Running regular internal compliance checks
Training staff on current regulations
Maintaining proper documentation
Consulting with legal experts before launching new programs
Real-World Examples
I've seen cases where agents advertised properties they didn't have permission to sell, brokers operated with expired licenses, and companies collected advance fees illegally. Each case resulted in swift action from regulators and serious consequences for the violators.
Protecting Yourself in Real Estate Transactions
You can protect yourself by:
Verifying licenses before working with any real estate professional
Getting everything in writing
Watching for unusual requests for upfront money
Reading all documents carefully before signing
Conclusion
Following real estate laws protects everyone involved in property transactions. Working with licensed, ethical professionals makes all the difference in your real estate experience.
At Bellhaven Real Estate, we maintain strict compliance with all real estate regulations. Our team stays current with legal requirements and puts your interests first. Contact us for your next real estate transaction - we'll help you navigate the process safely and legally.