1. Why did I receive a letter from the Department of Real Estate (DRE)?
A letter from the DRE often signals that you are the subject of an investigation, not just a routine inquiry. It may relate to a consumer complaint, a civil lawsuit, a criminal conviction, or alleged misconduct during a transaction. These letters frequently request documents, a written narrative, or an interview. Responding without legal counsel can increase your risk of formal discipline.
2. Do I need a lawyer just because I’m being investigated?
Yes. You are not required to have an attorney, but representation during the investigative stage is crucial. Many licensees mistakenly believe that they can “clear things up” by cooperating informally, only to later discover their statements were used against them in a formal accusation. Early legal intervention can reduce the chance of formal charges, limit harmful disclosures, and control the narrative.
3. What types of conduct can lead to disciplinary action by the DRE?
Discipline can result from a wide range of alleged violations under the Business and Professions Code §§ 10176–10177, including but not limited to: Failure to disclose material facts Trust fund mismanagement Criminal convictions involving moral turpitude Fraud or misrepresentation Failure to supervise (for brokers) Civil judgments for real estate fraud or negligence Violations of the Real Estate Law or Commissioner’s Regulations Even conduct outside of active real estate practice—such as a DUI or tax fraud conviction—can trigger discipline.
4. Can the DRE revoke my license over a single complaint?
Yes. If the DRE determines that the complaint has merit and involves serious violations (e.g., fraud, criminal convictions, unlicensed activity, or repeat offenses), it may issue a formal Accusation, seeking suspension or revocation. Each case is fact-specific, and mitigating factors such as cooperation, remedial action, and legal representation can influence the outcome.
5. What happens after a formal Accusation is filed?
Once an Accusation is filed, your license is in jeopardy. You will be entitled to an administrative hearing before the Office of Administrative Hearings (OAH), where a judge will hear evidence and issue a proposed decision. However, unless you settle beforehand, this is an adversarial, trial-like proceeding governed by the Administrative Procedure Act and California Code of Regulations.
6. Can I negotiate a settlement with the DRE?
Yes, and in many cases, a stipulated settlement is preferable to the risks of a contested hearing. Settlements can involve terms such as license probation, remedial education, fines, or supervision—but preserve your ability to continue working. An attorney can help negotiate terms that are fair, proportional, and preserve your future opportunities.
7. What if I already have an E&O insurer or broker representing me?
If you are also being sued in civil court, your Errors & Omissions carrier may appoint counsel to defend you. However, E&O defense counsel does not represent your interests before the DRE and may not advise you about licensing consequences. Our firm can coordinate with insurance counsel to ensure your civil defense does not jeopardize your license.
8. I have a criminal conviction. Will it result in discipline?
Possibly. The DRE reviews convictions to determine if they are “substantially related” to the qualifications of a licensee under Bus. & Prof. Code § 480 and § 10177(b). Crimes involving fraud, dishonesty, or moral turpitude (e.g., theft, embezzlement, or tax evasion) are particularly problematic. We evaluate the record, prepare mitigation packages, and can petition for reinstatement if necessary.
9. Can I get my license back if it has already been revoked or surrendered?
Yes. You may petition for reinstatement or removal of restrictions under Bus. & Prof. Code §11522, typically after at least one year. The process is document-intensive and often includes a hearing. We assist with petition preparation, evidentiary support, and strategic presentation to maximize your chances of success.
10. How long does the DRE discipline process take?
Timelines vary. Investigations can last several months. Once a formal Accusation is filed, the process—if it proceeds to hearing—can take 6 to 12 months or longer, depending on OAH calendar availability, discovery disputes, and settlement efforts. Acting early can reduce delays and improve your control over the process.
11. What will legal representation cost me?
Legal fees vary based on the stage and complexity of the case. For example: Initial response to DRE inquiry: Flat fee or limited-scope hourly rate Full representation in Accusation defense: Retainer plus hourly billing Stipulated settlement negotiation: Often more cost-effective than litigation We provide clear estimates after a confidential consultation and tailor the scope of our representation to your needs and budget.
12. What makes Guiding Legal Counsel, APC different?
We bring deep experience in both real estate law and professional licensure defense. Our firm is led by a seasoned trial attorney with real-world knowledge of the real estate industry and administrative law, enabling us to craft a comprehensive, dual-forum defense strategy—something many disciplinary attorneys or civil litigators cannot offer. We treat your license like the asset it is and defend it with the urgency it deserves.
