A panel of legal experts spoke to KCRAR member brokers in
December. Among them was Terry Moore, the Missouri Real Estate Commission
Director, and Erik Wisner, the Kansas Real Estate Commission Director, who each
shared some of their commonly cited infractions. In case you missed the panel, the
following are some infractions these two Real Estate Commissions shared:
Unlicensed Activity
This is seen in Missouri and Kansas in a few different ways.
It could be auctioning a property without a license; paying commissions to an
unlicensed entity or receiving commissions when unlicensed; licensees in other
states selling in a different state than where they are licensed; using
unlicensed individuals to market property; or generally practicing when a
license hasn’t been renewed.
Improper advertising
This has a lot to do with not including required information
on marketing materials, like company, broker and phone information. Wisner said
in Kansas this infraction is commonly seen in social media, where agents are
still required to include that information, but sometimes do not.
Failure to disclose
These infractions are seen in failures to disclose brokerage/agency
relationship, radon, offender disclosures, licensee interest in property or
material fact about the property.
Escrow accounts
This includes not being registered, failure to close
account, commingling funds, accounts not reconciling, no receipt for the
purchase contract from the third-party escrow agent, transaction numbering
being incorrect or non-existent or the transaction not closing by the specified
date in the contract.
Contracts
This includes contracts having blanks and being incomplete,
missing agency and transaction brokerage agreements, or failing to deliver
purchase agreement and/or earnest money to third party escrow agent within five
days.
For more information on laws and guidelines, visit the
commissions at their websites:
