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Steps To Take If Your Real Estate License Is Suspended in California

Receiving notice that your California real estate license has been suspended can be overwhelming and stressful. Your livelihood, reputation, and future in the real estate industry may be at risk. However, a suspension doesn’t have to be the end of your career. By taking prompt and thoughtful action, you may be able to resolve the issue, restore your license, and move forward.

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Understand Why Your License Was Suspended

The first step is to carefully review the notice of suspension. The California Department of Real Estate (DRE) is required to provide written notice explaining the reasons for your suspension. Common causes for suspension include:

  • Failure to pay child support
  • Unpaid state taxes or fees
  • Criminal convictions that reflect on your fitness as a licensee
  • Violations of the Real Estate Law (such as fraud, misrepresentation, or failure to supervise)
  • Disciplinary action in another profession

Knowing the exact reason will help you determine your next steps and whether immediate action, such as paying past-due obligations or contesting the suspension, is possible.

Consult with an Experienced Real Estate License Defense Attorney

Once you understand the basis for your suspension, it is critical to speak with a California real estate license defense attorney. Navigating the DRE’s disciplinary process can be complex, and missteps can harm your chances of reinstatement. An attorney can:

  • Evaluate the grounds for suspension
  • Help you understand your rights and options
  • Represent you in communications with the DRE
  • Develop a strategy for reinstatement or appeal

If you believe the suspension was issued in error or without sufficient grounds, your attorney can also help you challenge it through administrative proceedings.

Address the Underlying Issue Promptly

In many cases, the suspension can be lifted by addressing the cause directly. For example:

  • If the suspension is for unpaid child support: Work with the appropriate agency to bring your payments current or negotiate a payment plan, then provide proof to the DRE.
  • If the suspension is due to unpaid taxes or fees: Contact the Franchise Tax Board or other relevant agency to resolve the debt.
  • If the suspension stems from a criminal conviction or disciplinary action: You may need to show rehabilitation efforts, such as completing probation, paying fines, or participating in counseling.

The sooner you act, the sooner you may be able to petition for reinstatement of your license.

Request a Hearing If Appropriate

If you disagree with the suspension or believe you have grounds to contest it, you have the right to request a hearing before an administrative law judge. This is your opportunity to present evidence, call witnesses, and make legal arguments in your defense. A skilled attorney can prepare and present your case to give you the best chance of success.

However, it is important to act quickly. The notice of suspension should specify the timeframe for requesting a hearing. Missing this deadline could result in losing the right to challenge the suspension.

Prepare for Reinstatement

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Even if your suspension is upheld, you can take steps to prepare for reinstatement. Depending on the reason for the suspension, this may include:

  • Completing additional education or ethics courses
  • Paying restitution
  • Demonstrating rehabilitation and good conduct over time

Once the conditions for reinstatement are satisfied, you can apply to the DRE for your license to be restored.

Protect Your Future in Real Estate. Contact Us Today

A suspended license is a serious matter, but it is not necessarily a permanent one. By understanding the process, taking action, and seeking legal guidance, you can work toward resolving the suspension and getting back to doing what you love: helping clients in the real estate market.

At Gould, Hahn, & Reinhardt, we are dedicated to protecting the careers of California real estate professionals. If your license has been suspended, contact us today for a confidential consultation. Let us help you navigate the path to reinstatement and safeguard your professional future.