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Can client complaints cost real estate agents their licenses?

On Behalf of | May 27, 2025 | Real Estate License Defense |

Obtaining a real estate license can be a career-altering choice. Professionals complete educational courses, pass a state test and undergo a background check to obtain their license. Developing a successful real estate career often requires months, if not years, of networking.

All of a professional’s investments could be at risk if the California Department of Real Estate’s Enforcement Section takes their license away as a disciplinary measure. Individuals convicted of fraud offenses or other serious criminal offenses could be at risk of losing their real estate licenses. So can those accused of professional misconduct without criminal prosecution.

Can complaints from dissatisfied clients, possibly those with buyer’s remorse, cost a real estate professional their license?

Formal complaints have never been easier to submit

The California Department of Real Estate’s Enforcement Section now allows for online complaints against licensed real estate agents. People with a chip on their shoulders can cause career issues for a professional who may have fulfilled all of their contractual and legal obligations. While the complaint process does generally involve an investigation, clients and others with whom a professional real estate agent interacts could still potentially fabricate or exaggerate allegations against a professional.

Buyers who overextended themselves in their eagerness to buy on a competitive market may come to resent their agent for not talking them out of a transaction. Sellers may believe that an agent convinced them to list the property for less than they deserved after they see how the market fluctuates months after a closing. They might then try to claim that the agent misrepresented the situation, provided improper guidance or engaged in misconduct that undermined the rights of the client.

Depending on the circumstances, dedicated professionals could be at risk of significant career setbacks because of the allegations brought against them.

Agents have a right to defend their licenses

People accused of criminal activity have a right to work with a lawyer. Professionals facing disciplinary actions related to state licensing also have the right to retain legal assistance.

Instead of trying to navigate disputes about client complaints and job performance independently, many people may benefit from hiring an attorney as soon as they learn about a pending complaint or the possibility of disciplinary action. Lawyers can handle formal communications and can advocate for the professionals that they represent at disciplinary hearings. Their efforts can result in the Enforcement Section dismissing a complaint or handing down a less severe penalty.

Having appropriate assistance when defending a real estate license can help make a difference for an agent. Complaints from clients and members of the public can lead to investigations and disciplinary hearings that could endanger a professional’s license. Agents who respond assertively may be able to protect their licenses and their careers.

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