Real Estate License Defense
Representation Before the State Real Estate Commission
The State Real Estate Commission licenses brokers, associate brokers, salespersons and a number of other real estate licensees, and it administers the Real Estate Recovery Fund. The Commission enforces detailed rules on escrow, agency relationships, disclosures, advertising and the supervision of licensees by their employing brokers.
Complaints most often follow a transaction that did not close as a buyer or seller expected, and they frequently concern deposits, disclosures, dual agency, advertising or the conduct of a licensee during negotiations. Because an employing broker is responsible for supervising the licensees in the office, a complaint about one agent may also be directed at the broker and the brokerage.
Mimm Law, LLC represents brokers, salespersons and other licensees at every stage of a Commission matter, including Recovery Fund claims, from the initial inquiry through final order.
Governing Law
- Commission
- State Real Estate Commission
- Statute
- Real Estate Licensing and Registration Act, 63 P.S. §§ 455.101-455.902
- Regulations
- 49 Pa. Code Chapter 35
- Licensees
- Brokers, salespersons and other licensees
- Renewal
- Biennial; licenses expire May 31 of even-numbered years
Who the Commission Regulates
- Broker and associate broker licenses
- Salesperson license
- Cemetery broker and cemetery salesperson licenses
- Builder-owner salesperson license
- Rental listing referral agent license
- Campground membership and time-share salesperson licenses
- Cemetery company registration
Grounds for Discipline
Section 604 of the Real Estate Licensing and Registration Act (63 P.S. § 455.604) lists more than thirty grounds for discipline, including:
- Obtaining a license by false representation or fraud
- Substantial misrepresentation, or false promises intended to influence a party
- Misleading advertising
- Failure to comply with the Act's escrow and deposit requirements
- Failure to retain transaction records for three years
- Acting for more than one party to a transaction without the written consent of all parties
- Paying a commission to an unlicensed person
- Conviction of forgery, embezzlement, false pretenses, bribery, larceny, extortion, conspiracy to defraud or any felony, including guilty and nolo contendere pleas
- Conduct in a real estate transaction showing bad faith, dishonesty, untrustworthiness or incompetency
- A broker's failure to supervise the licensees in the broker's employ
- Failure to respond in a timely manner to the Commission's requests concerning a complaint
- Violation of the Commission's regulations, and discipline under another state's real estate law
Sanctions the Commission May Impose
The Commission may refuse, suspend or revoke a license and may impose fines. When the Real Estate Recovery Fund pays a claim based on a licensee's conduct, the licensee's license is automatically suspended until the Fund is repaid with interest. A revoked licensee cannot be reinstated within five years and must then re-qualify, including the examination.
In addition to the sanctions in the Commission's own statute, Chapter 31 of Title 63 of the Pennsylvania Consolidated Statutes authorizes each licensing board and commission to impose a civil penalty of up to $10,000 per violation and to assess the costs of investigation against a licensee found to have violated the law.
Obligations That Often Lead to Commission Matters
Escrow
A broker must deposit money belonging to others in a separate escrow account by the end of the next business day, may not commingle it with the broker's own funds and must keep records showing each deposit and disbursement. With the written consent of buyer and seller, a check may be held uncashed until the offer is accepted and then deposited within one business day of acceptance.
Supervision
Each broker must maintain an office in Pennsylvania and supervise the licensees employed there. Advertising, agreements and escrow practices within the office are the broker's responsibility.
The Recovery Fund
A person who obtains a final judgment against a licensee for fraud, misrepresentation or deceit may apply to the Real Estate Recovery Fund, subject to per-claim and per-licensee limits. The Fund pays no more than $20,000 per claim and $100,000 per licensee, and repayment carries interest at 10% a year. A payment from the Fund results in the automatic suspension of the licensee's license until the Fund is repaid.
Matters We Handle
- Consumer complaints concerning disclosures, deposits and escrow
- Advertising and supervision issues within a brokerage
- Recovery Fund claims - a Fund payment automatically suspends the license until the Fund is repaid with interest
- Allegations of practice without a current license
- Criminal charges and convictions affecting licensure
- Application questions for new and returning licensees
- Missing consumer notices at the first meeting
- Wholesaling and assignment-of-contract activity
How We Can Help
Commission Investigations
Upon receipt of a letter of inquiry, a subpoena or contact from an investigator, the firm evaluates the allegations, reviews the licensee's records, prepares a written response and attends any investigative interview. In some matters, an early, well-documented response may resolve the matter before formal charges are filed.
Formal Charges and Hearings
When the Commonwealth files an Order to Show Cause, the time to respond is short, and a respondent who misses the deadline may be held in default and the facts alleged deemed admitted. The firm prepares and files the answer, negotiates a consent agreement where one serves the client's interests, and tries the matter before the hearing examiner or the Commission where it does not.
Applications and Reinstatement
For applicants whose history may raise questions, and for licensees seeking reinstatement after suspension, revocation or lapse, the firm assembles the application and supporting record and presents the matter to the Commission.
Questions Licensees Ask
A buyer is demanding the return of a deposit. What are my obligations?
The broker holding the deposit must follow the Act and the Commission's regulations governing the release of escrow funds, which generally require written agreement of the parties or a court order. Releasing funds without proper authority is a frequent ground for discipline.
As a broker, can I be disciplined for an agent's conduct?
Yes. A broker's failure to supervise the licensees in the broker's employ is an express ground for discipline, and the Commission often names the broker along with the agent. Written office policies and evidence of supervision are important in these matters.
What is the Real Estate Recovery Fund, and how does it affect my license?
The Fund compensates consumers who hold an uncollectible final judgment against a licensee for fraud, misrepresentation or deceit. If the Fund pays a claim, the licensee's license is automatically suspended until the amount paid is repaid with interest, so a Recovery Fund claim should be defended with the license in mind.
Should I speak with an investigator before I have counsel?
A licensee who receives a letter of inquiry, a subpoena or a telephone call from an investigator with the Bureau of Enforcement and Investigation should be courteous and should note the investigator's name and contact information, but should not give a substantive statement before obtaining advice. Anything said to an investigator may be included in the report reviewed by the prosecuting attorney and, later, by the Commission. Counsel can determine what is being alleged, gather the relevant records and prepare a response that is accurate, complete and appropriately limited.
Must I report a criminal conviction, plea or ARD, or discipline in another state?
Yes. Pennsylvania law requires every licensee to notify the licensing commission in writing within 30 days of discipline imposed by a licensing authority in another jurisdiction and of a finding of guilt, guilty plea, plea of nolo contendere, probation without verdict, disposition in lieu of trial or Accelerated Rehabilitative Disposition on a felony or misdemeanor charge. Some boards' regulations impose additional or earlier reporting duties, including, for nurses and massage therapists, a duty to report the filing of criminal charges within 30 days. A failure to report is itself a ground for discipline, and it is frequently charged alongside the underlying conduct.
Meet Your Attorney
Steven A. Mimm, Esq.
Founder, Mimm Law, LLC. Admitted in Pennsylvania (2008) and New Jersey (2022).
From 2014 to 2022, Attorney Steven A. Mimm served as a prosecuting attorney bringing disciplinary actions on behalf of the Bureau of Professional and Occupational Affairs before Pennsylvania's licensing boards. That experience informs how the firm evaluates evidence, negotiates with the Commonwealth and prepares cases for hearing. Where a licensee also faces criminal charges, the firm handles the licensing matter and coordinates with the licensee's criminal defense counsel.
Related: All Licensing Boards · Licensing and FAQs
Last reviewed September 2026. The information on this page is general in nature and is not legal advice. Contacting the firm does not create an attorney-client relationship.