2023 DMAR Report on the CREC
Executive Summary
Broker disciplinary cases resolved in 2022 totaled 628. This number represents an increase from the previous year which closed with 557 resolved disciplinary cases. However, complaints filed with the Division of Real Estate continue to hover around 1,200 annual complaints filed.
In 2022, 491 licensees faced discipline for failure to meet continuing educational requirements. This violation was by far the most common violation of license law for 2022, and has been for at least the last five years. Licensees should ensure compliance with continuing education requirements.
Trust accounting issues continue to be a problem for brokers, especially property managers. Given the severity of discipline meted out to non-compliant property management operations, it is important for brokerage firm owners and employing brokers to redouble efforts to ensure compliance with trust accounting obligations. Further, brokers acting as landlords managing their own rentals and holding security deposits (or any money belonging to others) must take special care to comply with trust accounting rules applicable to such conduct. See Commission Rule 5.11.
For the last five years, the Commission has seen a consistent number of cases involving the failure to make appropriate brokerage disclosures in writing. Prior to undertaking any brokerage activities, licensees should make certain to either:
- Provide the appropriate brokerage disclosure form; or
- Secure an executed listing/exclusive right to buy contract and ensure that a copy of such form or contract is retained in the broker’s file.
Brokers should also think through making appropriate conflict of interest and license statute disclosures required when acting as a principal.
