How To Respond to a DRE Investigation Notice
Receiving a notice from the Department of Real Estate (DRE) can be unnerving, especially when it says you’re the subject of an investigation. Whether you’re a broker, salesperson, or real estate corporation, it’s crucial to understand that how you respond to a DRE investigation notice can significantly impact your license, livelihood, and professional reputation.
What Does a DRE Investigation Notice Mean?
A DRE investigation notice typically means that someone has filed a complaint or that the Department has independently opened a case to investigate alleged misconduct. This could stem from a range of issues, including:
- Allegations of misrepresentation or fraud
- Trust account discrepancies
- Failure to disclose material facts
- Unlicensed activity
- Violations of advertising rules
- Consumer or client complaints
Receiving a notice does not automatically mean you are guilty of misconduct. It means the DRE believes there is enough reason to investigate whether a violation has occurred.
Don’t Panic, But Don’t Ignore It
First and foremost, read the notice carefully and take it seriously. The DRE is a regulatory body with the authority to suspend or revoke your license. Ignoring the letter or delaying your response can worsen your situation or suggest noncooperation, which could be used against you later.
Make a note of any deadlines. Investigation notices often request documentation or a written response within a specific timeframe. Failing to take advantage of this opportunity can result in formal disciplinary action.
Contact a Real Estate License Defense Attorney
One of the most important steps you can take is to consult with an experienced real estate license defense attorney. Responding on your own may seem like the faster or easier option, but you could inadvertently say something that harms your case or waive certain rights.
An attorney can:
- Review the notice and allegations
- Communicate with the DRE on your behalf
- Ensure your response is accurate and legally sound
- Help you navigate interviews or requests for documents
- Prepare you if a formal administrative hearing is scheduled
Don’t assume the DRE is on your side. Their role is to protect the public, not your professional interests.
Gather All Relevant Records
If the notice references specific transactions or conduct, start collecting related documents. This may include:
- Purchase agreements or listing contracts
- Emails, texts, and other communications with clients or colleagues
- Trust account records or ledgers
- Disclosures, reports, and advertising materials
- Your transaction logs or MLS records
Organize everything chronologically and don’t alter any records. A well-prepared response can help clarify misunderstandings and potentially avoid formal charges.
Be Honest, But Strategic
In your written response or during an interview with a DRE investigator, honesty is crucial. However, honesty doesn’t mean you must volunteer unnecessary information. Be truthful, direct, and concise. Stick to the facts and avoid speculation or emotional commentary.
Let your attorney help you craft your response in a way that addresses the DRE’s concerns without creating new ones.
Understand Possible Outcomes
After the investigation, the DRE may:
- Close the case without action
- Issue a warning or citation
- Negotiate a settlement or stipulated agreement
- File a formal Accusation, which can lead to a hearing before an administrative law judge
How you handle the investigation phase can influence which path the case takes. In many cases, early legal representation helps avoid more serious consequences.
Contact Our Legal Team To Learn More
At Gould, Hahn, & Reinhardt, we’ve guided numerous real estate professionals through DRE investigations with discretion and skill. We understand what’s at stake and how to build a thoughtful, strategic response from the start.
If you have received a DRE investigation notice, don’t try to navigate it alone. Contact us today for a confidential consultation. We’re here to protect your license and your future.