WHAT DO I NOW?
A BRIEF OVERVIEW OF THE ADMINISTRATIVE DISCIPLINARY PROCESS
Steps In A Formal License Discipline/Denial Case
A BRIEF OVERVIEW OF THE ADMINISTRATIVE DISCIPLINARY PROCESS
Steps In A Formal License Discipline/Denial Case
| I | How Does DRE License Discipline Work In California | VI | License Discipline and Public Records | |
| II | Steps In A Formal License Discipline/Denial Case | VII | Preparing For the Hearing | |
| III | Discipline | VIII | Appearing For the Hearing | |
| IV | Official Notices During a Pending DRE Action | IX | Decisions | |
| V | Stipulated Settlement | X | Retaining An Attorney |
II. Steps in a Formal License Discipline/Denial Case
A formal DRE case can be broken down into four steps.
STEP 1 - Pre-Filing Investigation. Typically investigators from the DRE investigate allegations of license violations (or convictions) and confer with their superiors concerning a referral to the DRE Legal Section for filing of an Accusation/Statement of Issues.
Real Estate Licensee Activities Violations - As you may be aware, if you already have a license, a DRE investigation of your licensed activities usually begins with an inquiry letter asking the licensee for an explanation and may include telephone or in-person interviews and requests to produce documents and to fill out statements. Some investigations of licensed activities are followed up by a DRE audit.
Criminal Convictions - Applications - If you are applying for a license, you are no doubt aware of the lengthy time and process you have just gone through to get to this point. To summarize, you have received a letter from the DRE licensing section stating that your case had been assigned to a local district office for further investigation; you should have received a letter from the Deputy Commissioner assigned to your case (sometimes no letter is sent); you have subsequently been contacted either by phone or mail by the Deputy Commissioner asking you to fill out forms and to provide Court records and police reports; finally you have gone through an interview either by phone or in person with the Deputy Commissioner (sometimes the Deputy Commissioner does not do an interview).
Criminal Conviction - Licensee - If you have a license, you are no doubt aware of the process you have just gone through to get to this point. To summarize, you have been contacted either by phone or mail by the Deputy Commissioner asking you to fill out forms and to provide Court records and police reports; finally you have gone through an interview either by phone or in person with the Deputy Commissioner (sometimes the Deputy Commissioner does not do an interview).
STEP 2 - Service of an Accusation or Statement of Issues and a Notice of Defense. Attorneys on behalf of the DRE serve the licensee or license applicant with a notice, called an Accusation (for current licensees)/Statement of Issues (for license applicants), stating their intent to discipline/deny the licensee and the basis for such discipline. Upon receiving an Accusation/Statement of Issues, you should retain an attorney to immediately file the Notice of Defense in response to the Accusation or Statement of Issues to preserve your right to a hearing. If you do not file a Notice of Defense, the DRE will be able to automatically either revoke your license or deny your license application without having to conduct a hearing.
STEP 3 - Pre-Hearing Discovery and Negotiation. Depending on the DRE's backlog of cases and the anticipated length of the hearing, a case is scheduled for a hearing typically anywhere from 60 days to more than a year from the filing of the Notice of Defense. During this time the attorneys exchange information (called discovery) and usually attempt to negotiate a resolution to the case, called a Stipulated Settlement. Typically in a Stipulated Settlement, you would admit to some wrongdoing and accept some disciplinary consequences in exchange for leniency by the DRE and the issuance or retention of your license in some form. Cases that cannot settle go to hearing.
STEP 4 - Administrative Hearing and Decision. A formal Administrative Hearing is nearly identical to a full blown trial. Although it takes place in front of an administrative law judge with a court reporter, attorneys and witnesses present, there is no jury, the environment is slightly less formal, and the rules of evidence that strictly apply in criminal and civil cases are relaxed. After hearing the case, the judge typically takes the matter under submission and issues a decision approximately 30 days after the hearing ends. Thereafter, usually in taking an additional 30 days, the Real Estate Commissioner reviews the Proposed Decision and makes his determination. The Real Estate Commissioner may adopt the Proposed Decision of the administrative judge or reject it and substitute his own decision (which may happen if the Real Estate Commissioner has questions about the Proposed Decision). This discretion that the Real Estate Commissioner has may seem counterintuitive to what you know about the adjudicative process. If you are displeased with a final decision, you may file a Writ of Mandate, which is an appeal of the Real Estate Commissioner's Decision to the Superior Court.