Key Takeaways
- IREC can investigate complaints, conduct hearings, and impose disciplinary actions
- Violations can result in license denial, suspension, revocation, or civil penalties up to \$10,000
- Common violations include misrepresentation, commingling, unlicensed activity, and agency disclosure failures
- Practicing without a license is both an administrative and criminal violation in Idaho
- Licensees have due process rights including notice and hearing before disciplinary action
License Law Violations & Discipline
IREC has authority to investigate complaints and take disciplinary action against licensees who violate the Idaho Real Estate License Law.
Common Violations
Misrepresentation and Fraud
| Violation | Description |
|---|---|
| Material misrepresentation | False statements about important facts |
| Omission | Failing to disclose known material defects |
| Fraud | Intentional deception for personal gain |
| False advertising | Misleading marketing or claims |
Trust Account Violations
| Violation | Description |
|---|---|
| Commingling | Mixing client and broker funds |
| Conversion | Using client funds without authorization |
| Failure to deposit | Not depositing funds timely |
| Poor records | Inadequate documentation |
| Failure to reconcile | Not performing monthly reconciliations |
Agency and Disclosure Violations
| Violation | Description |
|---|---|
| Disclosure failures | Failing to provide required agency disclosures |
| Undisclosed dual agency | Acting for both parties without consent |
| Breach of fiduciary duty | Violating duties to clients |
| Undisclosed interest | Failing to disclose personal interest |
Unlicensed Activity
| Violation | Description |
|---|---|
| Practicing without license | Performing activities requiring a license |
| Expired license practice | Continuing to work after expiration |
| Paying unlicensed persons | Compensating unlicensed individuals |
Warning: Practicing real estate without a license is both an administrative violation and a criminal offense in Idaho.
E&O Insurance Violations
| Violation | Description |
|---|---|
| Operating without E&O | License should be inactive |
| False proof of E&O | Submitting fraudulent documentation |
| Failure to notify | Not reporting E&O lapse |
Disciplinary Process
Investigation
- Complaint filed with IREC (or IREC initiates investigation)
- Investigation conducted by DOPL investigators
- Evidence gathered (documents, interviews, audits)
- Determination made whether to proceed
Hearing Process
If IREC proceeds with disciplinary action:
| Step | Description |
|---|---|
| Notice | Licensee notified of charges |
| Response | Licensee may respond to charges |
| Hearing | Formal hearing before Commission |
| Evidence | Both sides present evidence |
| Decision | Commission issues written decision |
| Appeal | Licensee may appeal to court |
Due Process Rights
Licensees have the right to:
- Notice of charges
- Hearing before adverse action
- Representation by attorney
- Present evidence and witnesses
- Cross-examine witnesses
- Appeal unfavorable decisions
Disciplinary Actions
IREC may impose various sanctions:
| Action | Description |
|---|---|
| Denial | Refuse to issue license |
| Suspension | Temporary loss of license |
| Revocation | Permanent loss of license |
| Reprimand | Formal warning |
| Civil penalty | Up to $10,000 per violation |
| Probation | Conditional license with restrictions |
| Education | Required additional training |
Idaho Civil Penalties
| Violation Type | Potential Penalty |
|---|---|
| Per violation | Up to $10,000 |
| Multiple violations | Penalties accumulate |
| Pattern of conduct | Higher penalties likely |
Key Point: Idaho can impose civil penalties up to $10,000 per violation - this is a heavily tested fact.
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 |
| Intentional vs. negligent | Intent usually means stricter penalty |
License Reinstatement
After suspension or revocation, reinstatement requirements vary:
After Suspension
| Requirement | Details |
|---|---|
| Wait period | Must serve full suspension term |
| Conditions | Meet any conditions imposed |
| Education | Complete any required courses |
| Apply | Submit reinstatement application |
| Fees | Pay required fees |
After Revocation
| Requirement | Details |
|---|---|
| Wait period | Typically minimum 2-5 years |
| Petition | Must petition IREC for reinstatement |
| Demonstrate | Show rehabilitation and fitness |
| New exam | May need to retake licensing exam |
| Education | May need to complete education again |
Note: Reinstatement after revocation is not guaranteed - IREC has discretion to deny.
Criminal Violations
Certain violations can result in criminal prosecution:
| Violation | Criminal Status |
|---|---|
| Practicing without license | Misdemeanor |
| Trust fund theft | Felony (depending on amount) |
| Fraud | Felony |
| Forgery | Felony |
Criminal prosecution is separate from IREC administrative action - both can occur simultaneously.
Statute of Limitations
| Action Type | Time Limit |
|---|---|
| IREC disciplinary action | Varies by violation |
| Civil lawsuits | Generally 3-4 years |
| Criminal prosecution | Varies by offense |
Reporting Requirements
Licensees must report certain events to IREC:
| Event | Reporting Requirement |
|---|---|
| Criminal conviction | Must report promptly |
| Civil judgment (real estate related) | Must report |
| Disciplinary action in other state | Must report |
| Change of address | Within 10 days |
| Change of broker | Within 5 days |
What is the maximum civil penalty IREC can impose per violation?
Which action is both an administrative violation AND a criminal offense in Idaho?
What rights does an Idaho licensee have before IREC takes disciplinary action?
Which of the following is NOT a disciplinary action IREC can impose?
Within how many days must an Idaho licensee report a change of broker to IREC?
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