Key Takeaways
- DCREC can investigate complaints, conduct hearings, and impose fines up to \$2,500 per violation
- Violations can result in license denial, suspension, revocation, reprimand, or fines
- Common violations include fraud, misrepresentation, undisclosed dual agency, and trust account violations
- Licensees have due process rights including notice and opportunity to be heard before adverse action
- Criminal convictions must be disclosed to the Commission
Last updated: January 2026
License Law Violations & Discipline
The DC Real Estate Commission has authority to investigate complaints and take disciplinary action against licensees who violate DC real estate law under D.C. Code § 47-2853.197.
Prohibited Acts
Fraud and Dishonest Dealing
| Violation | Description |
|---|---|
| Material misrepresentation | False statements about important facts |
| False advertising | Misleading marketing or claims |
| Fraud | Intentional deception for personal gain |
| Dishonest dealing | Any dishonest conduct in transactions |
| False promises | Making promises you cannot or will not keep |
Conflict of Interest Violations
| Violation | Description |
|---|---|
| Undisclosed dual agency | Acting for both parties without consent |
| Hidden transactions | Concealing your role in transaction |
| Self-dealing | Buying property without disclosure |
| Undisclosed compensation | Accepting payment without disclosure |
Agency Violations
| Violation | Description |
|---|---|
| Acting for multiple parties | Without knowledge of all parties |
| Accepting undisclosed payment | From party other than employer |
| Failing to disclose representation | Not disclosing who you represent |
| Breach of fiduciary duty | Violating duties owed to client |
Trust Account Violations
| Violation | Description |
|---|---|
| Commingling | Mixing client and personal funds |
| Conversion | Using client funds without authorization |
| Failure to deposit | Not depositing funds timely |
| Early access | Taking funds before closing/termination |
| Poor records | Inadequate documentation |
Unlicensed Activity
| Violation | Description |
|---|---|
| Practicing without license | Performing licensed activities unlicensed |
| Expired license practice | Working after license expires |
| Paying unlicensed persons | Compensating unlicensed individuals |
Disciplinary Process
Investigation
- Complaint filed with Commission (or Commission initiates investigation)
- Review to determine if violation is alleged
- Investigation conducted if valid complaint
- Licensee notified and given opportunity to respond
- Determination made whether to proceed
Hearing Process
If the Commission proceeds with disciplinary action:
| Step | Description |
|---|---|
| Notice | Licensee notified of charges |
| Hearing | Formal hearing before Commission |
| Evidence | Both sides present evidence |
| Decision | Commission issues decision |
| Appeal | Licensee may appeal |
Due Process Rights
Licensees have the right to:
- Notice of charges
- Opportunity to respond to complaint
- Hearing before adverse action
- Present evidence and witnesses
- Appeal unfavorable decisions
Disciplinary Actions
The Commission may impose various sanctions:
| Action | Description |
|---|---|
| Denial | Refuse to issue license |
| Suspension | Temporary loss of license |
| Revocation | Permanent loss of license |
| Reprimand | Formal warning |
| Fine | Up to $2,500 per violation |
| Probation | Conditional license with restrictions |
Factors Considered
| Factor | Impact |
|---|---|
| Severity of violation | More serious = harsher penalty |
| Prior disciplinary history | Repeat violations = stricter |
| Harm to consumers | Consumer damage = more serious |
| Cooperation | Cooperation may reduce penalty |
Criminal Convictions
Disclosure Requirement
DC real estate professionals must disclose criminal convictions to the Commission:
| Requirement | Details |
|---|---|
| When | On initial application |
| When | At renewal |
| When | Within specified time of conviction |
Impact on Licensure
| Conviction Type | Potential Impact |
|---|---|
| Fraud-related | May prevent or revoke license |
| Dishonesty crimes | May prevent or revoke license |
| Real estate crimes | May prevent or revoke license |
| Other felonies | Reviewed on case-by-case basis |
Right to Appeal: You have the right to appeal a negative decision from the Commission regarding criminal history.
Reporting Violations
How to File a Complaint
Complaints can be filed with the DC Real Estate Commission:
| Method | Details |
|---|---|
| Online | Through DLCP website |
| Writing | Submit to Commission office |
| Phone | Contact DLCP |
Who Can File
- Consumers
- Other licensees
- Commission (on its own initiative)
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Test Your Knowledge
What is the maximum fine the DC Real Estate Commission can impose per violation?
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Test Your Knowledge
Which of the following is a prohibited act under DC real estate law?
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Test Your Knowledge
What rights does a DC licensee have before the Commission takes disciplinary action?
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Test Your Knowledge
Which disciplinary action is NOT available to the DC Real Estate Commission?
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