Which action is a criminal offense in Nebraska?

Practicing real estate without a license. Practicing real estate without a license is a criminal offense in Nebraska, not just an administrative violation. Other options may result in administrative penalties but are not criminal offenses.

Which of the following is NOT a disciplinary action NREC can impose?

Imprisonment. NREC can impose administrative penalties including denial, probation, suspension, revocation, reprimand, fines, and required education. NREC cannot impose imprisonment--that requires criminal prosecution through the court system.

Key Takeaways

NREC can investigate complaints, conduct hearings, and impose disciplinary actions
Violations can result in license denial, suspension, revocation, probation, or fines
Common violations include misrepresentation, commingling, unlicensed activity, and disclosure violations
Practicing without a license is a criminal offense in Nebraska
Licensees have due process rights including notice and hearing before disciplinary action

License Law Violations & Discipline

NREC has authority to investigate complaints and take disciplinary action against licensees who violate the Nebraska Real Estate License Act.

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 (72 hrs)
Poor records	Inadequate documentation

Agency and Disclosure Violations

Violation	Description
Agency disclosure failures	Failing to provide required 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
Practicing on expired license	Continuing to work after expiration
Paying unlicensed persons	Compensating unlicensed individuals for licensed activities

Warning: Practicing real estate without a license is a criminal offense in Nebraska.

Disciplinary Process

Investigation

Complaint filed with NREC (or NREC initiates investigation)
Investigation conducted by NREC staff
Evidence gathered (documents, interviews, audits)
Determination made whether to proceed

Hearing Process

If NREC proceeds with disciplinary action:

Step	Description
Notice	Licensee notified of charges
Hearing	Formal hearing before Commission
Evidence	Both sides present evidence
Decision	Commission issues written decision
Appeal	Licensee may appeal to court

Subpoena Power

NREC has subpoena power for hearings:

Can compel testimony
Can require document production
Enforceable through the courts

Due Process Rights

Licensees have the right to:

Notice of charges
Hearing before adverse action
Representation by attorney
Present evidence and witnesses
Appeal unfavorable decisions

Disciplinary Actions

NREC may impose various sanctions:

Action	Description
Denial	Refuse to issue license
Probation	Conditional license with restrictions
Suspension	Temporary loss of license
Revocation	Permanent loss of license
Reprimand	Formal warning
Civil fine	Monetary penalty
Education	Required additional training

Factors Considered in Discipline

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
Rehabilitation	Remedial steps may help

Criminal Penalties

Certain violations may result in criminal prosecution:

Violation	Potential Consequences
Practicing without license	Criminal charges, fines
Fraud	Criminal prosecution
Conversion	Criminal charges, potential imprisonment

2025 Advertising Regulation Changes

NREC has adopted new regulations relating to advertising. Key points:

Requirement	Description
Truthfulness	All advertising must be truthful
Identification	Licensee and brokerage must be identifiable
No misleading claims	Cannot make false or misleading statements
Team names	Must comply with NREC rules

Consumer Protection

Complaint Process

Consumers can file complaints with NREC:

Submit complaint in writing
NREC reviews for jurisdiction
Investigation if warranted
Disposition - dismiss or proceed
Resolution - discipline if appropriate

Consumer Remedies

Remedy	Description
Civil lawsuit	Consumer can sue licensee
NREC complaint	Administrative action
Damages	Recovery of actual damages
Attorney fees	May be recovered in some cases

Test Your Knowledge

What rights does a Nebraska licensee have before NREC takes disciplinary action?

No rights--NREC has absolute authority

Only the right to pay a fine instead

Due process rights including notice and hearing

Only the right to surrender their license

Nebraska Real Estate Salesperson

1Chapter 1: Nebraska Real Estate Commission & Licensing

2Chapter 2: Agency Relationships & Disclosure

3Chapter 3: Nebraska Contracts & Property Disclosures

4Chapter 4: Trust Accounts & License Violations