Part Three of an in-depth Five-Part series on the Complaint and Disciplinary Process in Regulatory Affairs. See Part One “Navigating Complaints: A How-To Guide” from the August 2024 eBulletin and Part Two “The Road Ahead: After the Investigation” from the September 2024 eBulletin.
In Part One of our series, we explored the complaint and investigative process in Regulatory Affairs, and in Part Two, we examined what happens once an investigation is complete. In Part Three, we shift our focus to what happens after the Commission has found probable cause for disciplinary action and ordered a hearing in a case.
After the Commission has found probable cause and ordered a hearing in a case, the broker, referred to in a disciplinary case as a “Respondent,” receives the case status report (“CSR”) and a letter from the Commission staff attorney handling the prosecution of the case. These documents set the date for the hearing and provide information so that the Respondent can schedule a date for the pre-hearing conference.
The pre-hearing conference is a conference with the Commission staff attorney and the Respondent and/or the Respondent’s attorney. The conference is an opportunity to discuss details of the case, the hearing process, explore potential settlement options, and clarify questions. The Commission staff attorney serves as the primary point of contact in a disciplinary case and may answer procedural questions for a Respondent. The Commission staff attorney cannot provide legal advice and cannot give opinions to a Respondent, such as whether or not to accept a proposed settlement or proceed to a hearing. Respondents are encouraged to actively engage in discussions with the Commission staff attorney during the pre-hearing conference and to seek legal advice from an attorney, if the Respondent wishes.
North Carolina General Statute § 93A-6 grants the Commission the authority to take disciplinary action in the form of a suspension, revocation, or reprimand against a licensee who has violated any of the provisions of § 93A or Commission rules. These forms of discipline are imposed on a case-by-case basis, after a thorough consideration of the facts and their application to the relevant law.
A revocation is an official act by the Commission taking away a real estate license. A license suspension may be either active or stayed, or some combination of both. If a licensee is actively suspended, a licensee may not engage in real estate brokerage activity during the period of active suspension. If a licensee receives a suspension that is stayed, a licensee may engage in real estate brokerage activity during the period of the stayed suspension, subject to any other limitations that may be imposed on the license. A reprimand is a rebuke or a statement of disapproval by the Commission.
Most disciplinary cases at the Commission are settled by bringing to the Commission a proposed agreement between the Commission staff attorney, the Respondent, and/or the Respondent’s attorney, if any. In addition to a disciplinary sanction, a Respondent may also agree to complete real estate education courses and/or satisfy other conditions as part of a settlement. These conditions are unique to each case and relate to the misconduct of the Respondent. Pursuant to Commission Rule A .0615, settlements must be in writing and signed by the Respondent no later than two (2) days before the scheduled hearing. All settlements must receive final approval by a vote of the Commission members at an official meeting
Cases that are not resolved by agreement or where an agreed settlement is not accepted by the Commission proceed to hearing before the Commission members. Next month, we will take a close look at what happens during a disciplinary hearing.