Legal Question in Real Estate Law in California
My Real Estate License
I am a Loan/Real Estate agent working for a broker. I sold a negative amortization loan last year to a client. My client did not speak english so I had a translator with me at all times. I gave him disclosures as well as explained the loan in detail. I received a phone call from the Department of Real Estate telling me that the client had complained that he was not told his loan would increase. I know brokers have a bad reputation right now and I can't say that it's not their own doing but I have always tried to give my clients the highest level of customer service. At the time, homes were gaining value and I didn't expect the bubble to burst. Hindsight is always 20/20. My question is, what are the possible outcomes? Will they take my Real Estate license from me based on what the client says? Could I face jail time? I have never been through anything like this and am very scared. Do I need to obtain legal counsel or will that make me look guilty? I feel I have done nothing wrong, the DRE wants me to send them a letter explaining in detail the transaction.
5 Answers from Attorneys
Re: My Real Estate License
I'd vote for Mr. Cohen's plan. You need to involve the broker and the broker's insurer.
You also need to agther your written evidence, especially that relating to what written disclosures you made, and in what languages. The broker can be helpful here too, since the broker's records may be more complete than yours.
A criminal action and jail time are somewhere between unlikely and impossible if you conducted yourself as you describe.
Re: My Real Estate License
I like what Mr. Cohen and Mr. Whipple have said. I would encourage you to involve the broker's insurer. Also, before you send anything to the DRE, make sure you have a lawyer review it. And before you give any recorded statement to the DRE, make sure you talk to a lawyer first.
If you need help in this regard, let us know.
Re: My Real Estate License
everthing from no action to revoking the license are possible.
Re: My Real Estate License
You might discuss this with the broker. The broker most likely has errors and omissions insurance and, besides, the broker has a financial interest in the outcome of your situation. Ask the broker whether you or the broker can contact the insurance carrier for direction.
It probably would be prudent in the future to document such translations, and have the interpreter and client sign a document itemizing each document that was translated for the client.
If you have a friendly relationship with the translator, the translator could vouch for you either in a declaration or testimony.
Re: My Real Estate License
You may may want to put together your evidence and submit it to the DRE. Sometimes an offesive position may serve you. You can do with counsel or without. You will want to pull in and get a statement from the translator and other steps.
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