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My Lord, I just read 9 pages of this drama. I hope everything worked out for you! Please give us an update when you can.
In AL, that broker would be in a world of trouble with both their local and state Realtor associations regarding ethics violations as well as the state licensing board for violation of license law. I would not be shocked to see the broker as well as the agent involved lose their real estate license. That is what we call a "violation of the public trust" and AL deals with those pretty harshly. Allowing a party to take occupancy of a property without the owner's permission...and in this case, the owner explicitly stated NO...is a MAJOR MAJOR problem.
Update: We filed a formal complaint with Michigan Department of Licensing and Regulatory Affairs Bureau of Professional Licensing in August 2016. By the end of December, just before Christmas, we received copies in the mail of "Proof of Service" of the complaint that had been served to the Realtor and also his agent.
Basically it states : Formal Complaint, notice of Opportunity to Show Compliance and Compliance Conference Election Form.
The first 2 pages cover the formal complaint and allegations, then Count 1-Respondents conduct as described constitutes acting for more than one party in a transaction without knowledge of the parties in violation of section 2512 (a) of the code.
COUNT 2- Respondents conduct constitutes fraud, deceit, or dishonesty in his practice as a real estate broker in violation of sec. 604 (b) of the code. Then goes on to say ......hereby commences proceedings to determine whether dis iplinary action should be taken by Lara for reasons set forth.
The agents Proof of Service complaint outlines a list of allegations and identical counts as with the Realtor.
At this point, we are waiting to hear from the state the outcome of their decision. We are concerned that we will not be compensated for our losses and they will only be reprimanded, ordered to take educational classes and pay a fine to the state, maybe suspension of their licenses.
Meanwhile.....we start over at square one, a year behind on where we had planned to be at this point. Smh...
We are wondering if we should hire an attorney to represent us with Lara, or file a separate suit against them for compensation, is there a statute of limitations on filing a lawsuit, also is it possible to sue the realtor and his agent while this under Lara's investigation? We don't know what we should do at this point. We had listed with another realtor in June but he has not shown our house one time in 6 months to our knowledge. Any advice?
Get the advice of an attorney in Michigan. Yes, you should be able to file civil suit regardless of what is happening with the state. One addresses injury to you, the other is violation of state licensing laws.
I know it doesn't mean much to you, but if the state suspends their licenses, that is a BIG deal. That pretty much is an end to their livelihood, hits them right in their pocketbook, and at least they won't be able to do to another homeowner what they did to you. If this was in my state, I can tell you with all certainty that those agents would be stripped of their real estate licenses.
You wouldn't believe what agents get away with mainly because the public (or other agents for that matter) do not hold them accountable or are not familiar with the process to do so.
Its also a violation of NAR Code of Ethics and that process is handled thru the local Realtor association the agents are members of. The association's grievance counsel can assist you with filing a complaint, and IMO you should.
At this point, we are waiting to hear from the state the outcome of their decision. We are concerned that we will not be compensated for our losses and they will only be reprimanded, ordered to take educational classes and pay a fine to the state, maybe suspension of their licenses.
Meanwhile.....we start over at square one, a year behind on where we had planned to be at this point. Smh...
This will vary from state to state, but the licensing board may not be able to legally order any type of compensation to be paid to you. In my state the board could not do so.
Your other questions really require answers from an attorney.
Well we spoke to a few atty's today. We were told that it would cost us $275 an hour for services, that we were in the wrong by moving them out of the house, that they could have sued us for doing that without an eviction and that they were "tenants" because they did not force their way into our home. He also said we should add up our damages to see if it were worth suing. It didn't seem to be in our favor. We have pretty much had the same answer from a few other atty's. they said litigation would cost more than it was worth and the only one who would profit would be the attorney. So thats where we're at and I guess we will have to be satisfied with whatever Lara decides. Will continue update as case progresses.
Update: We filed a formal complaint with Michigan Department of Licensing and Regulatory Affairs Bureau of Professional Licensing in August 2016. By the end of December, just before Christmas, we received copies in the mail of "Proof of Service" of the complaint that had been served to the Realtor and also his agent.
Basically it states : Formal Complaint, notice of Opportunity to Show Compliance and Compliance Conference Election Form.
The first 2 pages cover the formal complaint and allegations, then Count 1-Respondents conduct as described constitutes acting for more than one party in a transaction without knowledge of the parties in violation of section 2512 (a) of the code.
COUNT 2- Respondents conduct constitutes fraud, deceit, or dishonesty in his practice as a real estate broker in violation of sec. 604 (b) of the code. Then goes on to say ......hereby commences proceedings to determine whether dis iplinary action should be taken by Lara for reasons set forth.
The agents Proof of Service complaint outlines a list of allegations and identical counts as with the Realtor.
At this point, we are waiting to hear from the state the outcome of their decision. We are concerned that we will not be compensated for our losses and they will only be reprimanded, ordered to take educational classes and pay a fine to the state, maybe suspension of their licenses.
Meanwhile.....we start over at square one, a year behind on where we had planned to be at this point. Smh...
I'm glad to see that the state appears to be taking your complaint very seriously. Those are severe charges against both the agent and the broker.
I believe that I mentioned earlier that LARA has the ability to require restitution. When you filed your complaint, did you include a list of your estimated damages?
I'm not certain of the process at this point (since I've never been involved in a complaint) but I would suggest that you call the Department to inquire about the status of your complaint. Perhaps you could ask to speak with the person handling the investigation. You might ask if restitution is being considered as a possible outcome for your case--to put it in their mind, if nothing else. (Hopefully, you've fully documented your damages. If not, ask if you can submit additional information--although I'm not sure if you can amend your complaint at this point in time if you didn't raise the issue earlier.)
Anyhow, thanks for the update and I wish you well as this progresses. This isn't a very good time to sell a house in Michigan but, hopefully, your prospects will improve come spring. Hang in there.
Quote:
339.602 Violation of act, rule, or order; penalties.
Sec. 602. A person, school, or institution that violates this act or a rule or order promulgated or issued under this act shall be assessed 1 or more of the following penalties:
(a) Placement of a limitation on a license or certificate of registration for an occupation regulated under articles 8 to 25.
(b) Suspension of a license or certificate of registration.
(c) Denial of a license, certificate of registration, or renewal of a license or certificate of registration.
(d) Revocation of a license or certificate of registration.
(e) In the case of a person licensed or registered under this act and except as otherwise provided for by this act, an administrative fine to be paid to the department, not to exceed $10,000.00.
(f) Censure.
(g) Probation. (h) A requirement that restitution be made, based upon proofs submitted to and findings made by the hearing examiner after a contested case.
History: 1980, Act 299, Imd. Eff. Oct. 21, 1980 ;-- Am. 1981, Act 83, Imd. Eff. July 1, 1981 ;-- Am. 2005, Act 278, Imd. Eff. Dec. 19, 2005 ;-- Am. 2007, Act 155, Imd. Eff. Dec. 21, 2007 ;-- Am. 2007, Act 157, Imd. Eff. Dec. 21, 2007
339.603 Restitution; suspension of license or certificate of registration.
Sec. 603. If restitution is required to be made under section 602, the license or certificate of registration of the person required to make the restitution may be suspended until the restitution is made.
History: 1980, Act 299, Imd. Eff. Oct. 21, 1980
I can't remember if you have a deposit you get to keep.
Also, while you are out a lot of money and time, would small claims court be an option, albeit not a lot of money but something. I understand in OH the max you could get is $3000.
Hello. Update on this case as of today, July 25. We filed a complaint with LARA. I took off work and spent 2 weeks preparing a binder, in chronological order of the events that took place from beginning to end, including photos of damage from buyers, emails, forged contracts, text messages, etc. The asst. attorney general told me a did such a great job on it that they really didn't have to do much of anything because it was all right there in my binder. There is a hearing scheduled for August 4 in Lansing with the Bureau of Professional Licensing and the attorney general. Both the real estate broker and his agent are being charged. the agent is being charged on 2 counts, count 1- acting for more than one party in a transaction without knowledge of the parties in violation of section 2512 (a) of the code, count 2 - conduct constitutes fraud, deceit or dishonesty in practice, in violation of section 604 (b) of the code.
The real estate broker being charged with same as his agent.
We are scheduled for a phone interview with the asst. attorney general prior to the hearing date to discuss the court proceedings.
After discussing this and weighing out our options, we are not happy with this situation at all. I asked the asst. atty general if there would be restitution for the losses and expenses we've endured over this fiasco. She stated that there would be none, to us. That they (agent/broker)may be ordered to pay the state a fine up to the amount of $10,000 and/or have their licenses suspended, ordered to take classes.
She stated that if we were seeking restitution we could proceed to civil court from there. We have already done research in that area and the only person who would benefit would be the attorney that would represent us. Most/all of the attorneys we spoke with pretty much did not want anything to do with this because there wasn't enough money in it for them, or us.
By attending this hearing in Lansing, it is still going to cost us time off work, fuel and more time invested in this. It appears the state of Michigan is going to profit off this also and we are just left out, still trying to put our lives back in order.
How does someone spill hot coffee on themselves and a lawyer picks up on it???? but here we have a.....I don't even know what to call it anymore,.....just thoroughly disgusted with this whole thing.
Its going to be easy money for the state of Michigan, and I did all of the work for them.
When we have our pre-phone interview with the asst. atty general I have a few questions for her:
I have read through the articles of the code, in Article 6, 339.603 Restitution: Suspension of license or cert. of registration.
sec. 603 if restitution is required to be made under sec. 602, the license or certificate of registration of the person required to make the restitution may be suspended until the restitution is made.
It appears according to the code, that restitution to the complainant may be possible, although she stated in our last conversation they (the board) were not going to deal with that at the hearing. Just the 2 counts they had been charged with and that we should seek a civil suit. I just want to tell her I found this in the code, knowing it won't matter.
So, just wanted to update on where we are with this at this point. Will post the post- update after the hearing. This is gong to come to an end soon, and unfortunately, we are the losers, all we wanted to do was sell our house.....
Thanks Jack, I read through all of the codes and it appears we can get restitution but when I inquired of this with the Assistant attorney General Bridget Smith, she told me that the board did not want to have a "trial" ***** with he said, she said going on. That they will both be charged with the 2 counts and if we were seeking damages we would have to take it to civil court.
Thank you for all of your time, advice and help in this Jack. We really appreciate it.
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