Dealing with the Real Estate Police: What Every Agent Should Know
In this episode of Hustle Humbly, we sit down with Rick Roberts, a real estate commissioner, to demystify the role of the real estate police. Many agents fear the commission, but understanding its purpose and function can help you stay compliant and professional.
Understanding the Real Estate Commission
Rick explains how every state has a real estate commission responsible for enforcing licensing laws and protecting the public. While the National Association of REALTORS® (NAR) focuses on ethical standards, the commission enforces legal regulations. Complaints often come from the public, not other agents, and many involve mishandling of funds or failure to present offers.
Common Violations That Get Agents in Trouble
One of the most serious offenses is improper handling of client funds, such as losing or misplacing deposit checks. Other frequent issues include failure to disclose agency relationships, misleading advertising, and improperly managing contracts. The commission prioritizes consumer protection, ensuring licensees follow legal guidelines.
The Role of the Commission vs. REALTOR® Associations
Many agents confuse the real estate commission with REALTOR® associations. NAR and state REALTOR® associations focus on professional development and ethics, while the commission enforces state law. If an agent violates licensing laws, the commission has the authority to suspend or revoke their license.
Social Media and Advertising Compliance
Social media marketing presents new challenges for real estate compliance. Agents must follow strict advertising rules, ensuring brokerage information is clearly displayed. The commission receives complaints about misleading posts, but proper disclosures can keep agents in compliance.
Why Agents Should Get Involved in Real Estate Governance
Rick shares how he transitioned from a complaining agent to an industry leader. Instead of venting frustrations online, he joined committees and actively worked to improve real estate policies. Serving in leadership roles can enhance credibility, expand networks, and create real change in the industry.
Final Takeaways
Time kills deals, and verbal agreements don’t count—if it’s not in writing, it’s not real. The real estate police exist to uphold professionalism, not to punish agents unfairly. By understanding the commission’s role and staying compliant, agents can protect their businesses and reputations.
Rick Roberts is currently an associate broker with Coldwell Banker TEC in Mandeville, LA. Rick has been a licensed broker for the past 28 years and has served in a variety of REALTOR ® leadership positions. Find Rick at https://www.facebook.com/RickRobertsTheRobertsTeamColdwellBankerTEC.
