In real estate, professionals must follow many rules and avoid potential issues. One key topic to understand is consent orders. This blog explains what consent orders are, how they work, and how they differ from other types of disciplinary actions by the North Carolina Real Estate Commission.
What is a Consent Order?
A consent order is an agreement between a licensed real estate professional, such as a broker or agent, and the North Carolina Real Estate Commission. This legal document is created to settle allegations of misconduct without requiring a lengthy investigation or formal hearing.
The consent order includes specific findings of fact, which outline the allegations against the licensee and the evidence collected by the commission. It explains the licensee’s actions, if any, and the resulting consequences. Importantly, these details are made public to ensure transparency in the disciplinary process.
Key Components of a Consent Order
Understanding the parts of a consent order is important for any real estate professional. Here are the main elements:
- Findings of Fact: This section outlines the specific allegations and the evidence supporting them. It provides a clear explanation of what the commission believes happened.
- Conclusions of Law: This part explains the legal reasons behind the commission’s findings and decisions.
- Public Reprimand: Depending on the seriousness of the case, a consent order may include a public reprimand, which is posted on the commission’s website.
- Educational Requirements: A consent order often requires the licensee to complete certain real estate training courses.
Consent Order vs. Voluntary Surrender
It’s important to differentiate between a consent order and a voluntary surrender of a license. A voluntary surrender usually lasts for a set period, often two years, during which the licensee agrees to relinquish their license without admitting any wrongdoing.
Unlike a consent order, a voluntary surrender does not include findings of fact, meaning there is no public record detailing the allegations or evidence. The licensee may simply state that they are agreeing to a resolution without admitting fault.
Implications of a Consent Order
When a real estate professional entersintoa consent order, the implications can be significant. Here are a few key points to consider:
- Public Record: Since consent orders are published, they can affect a licensee’s reputation and ability to attract clients.
- Future Applications: If a licensee surrenders their license and wishes to reapply after the period is over, they may face additional scrutiny from the commission.
- Educational Impact: Completing required courses can be both a time and financial commitment for the licensee.
The Process of Entering a Consent Order
The process of entering a consent order typically involves several steps:
- Investigation: The North Carolina Real Estate Commission conducts an investigation into the allegations against the licensee.
- Negotiation: If the commission finds sufficient evidence, they may offer a consent order as a means to resolve the issue without further action.
- Agreement: The licensee can choose to accept the terms of the consent order, which may include penalties, educational requirements, or both.
- Publication: Once signed, the consent order is published on the commission’s website, making the findings public.
Benefits of a Consent Order
While the existence of a consent order may seem daunting, there are potential benefits:
- Resolution: A consent order can quickly resolve issues without the lengthy process of a hearing.
- Reduced Penalties: Accepting a consent order may result in lesser penalties compared to a full suspension or revocation.
- Opportunity for Improvement: The requirement for further education can help licensees address their shortcomings and improve their practices.
What Happens After a Consent Order?
Once a consent order is in place, the licensee must adhere to its terms. This includes completing any required courses and fulfilling any other stipulations outlined in the order. Failure to comply can lead to further disciplinary action.
When the term of the consent order concludes, the licensee may apply to have their license reinstated if they had previously surrendered it. However, this process may involve additional scrutiny, and the licensee must demonstrate their commitment to ethical practice.
Conclusion
Understanding consent orders is important for anyone working in real estate in North Carolina. By knowing the details and impact of consent orders, real estate professionals can make informed decisions, protect their careers, and stay in compliance with the rules.
*Nothing in this blog establishes an attorney-client relationship. Nothing in this blog is legal advice. If you have any questions, please check out our other blogs and our Youtube channel. You can also call us at 919-521-8810 with questions.