Felons Who Lie Can Have a Virginia Real Estate License

by Daniel Rothamel on October 22, 2007 · Comments

in Industry Issues

There is always a lot of talk around the real estate industry regarding the public reputation of real estate agents.  In case you didn’t know, we typically aren’t held in very high esteem when people are asked how much trust they have in various professions.  With what I just read in latest issue of the Virginia Real Estate Board newsletter, I can’t say that I blame the public.

The newsletter is delivered to real estate licensees every quarter.  One section of the newsletter that I always find interesting is the report on disciplinary actions of the Real Estate Board (REB).  This time, I found one particular disciplinary action unsettling.

The action was against a real estate licensee for a violation that was termed “Unworthiness & Incompetence.”  The licensee was fined $1000, forced to pay $150 in costs to the Board, and put on 3 years probation.  This, in and of itself, is not what I found unsettling.

What bothered me are the details of the case.  The public has access to all of the disciplinary actions by the REB against Virginia licensees of any profession through the website of the Virginia Department of Professional and Occupational Regulation.  I looked up the facts of the above-mentioned case and discovered that the licensee in question has been convicted of various misdemeanors for improper filing of taxes and check fraud, and a felony conviction for embezzlement.  All of this was prior to this person’s application for a Virginia real estate license.  The section of the Code of Virginia that covers real estate licensing states, in part:

The applicant shall not have been convicted or found guilty, regardless of the manner of adjudication, in any jurisdiction of the United States of a misdemeanor involving moral turpitude, sexual offense, drug distribution or physical injury, or any felony, there being no appeal pending therefrom or the time for appeal having elapsed. Review of prior criminal convictions shall be subject to the requirements of §54.1-204 of the Code of Virginia. Neither shall the applicant have been found to have violated the fair housing laws of any jurisdiction. Any plea of nolo contendere shall be considered a conviction for purposes of this subdivision. The record of a conviction authenticated in such form as to be admissible in evidence under the laws of the jurisdiction where convicted shall be admissible as prima facie evidence of such conviction or guilt. [emphasis added]

On the license application, there is a question that asks if the applicant has ever been convicted of a felony.  This licensee answered “no” as was subsequently issued a real estate license.  When a complaint was filed, the REB’s investigation lead to the penalty of the fine and the probation.

WHAT A JOKE!

The law clearly states that a real estate licensee shall not have been convicted of a felony.  Apparently, what it should say is, “an applicant, if having been convicted of a felony, should lie about the conviction in order to obtain a real estate license and then pay a fine later in order to keep the license.”

I am personally appalled that the REB would allow this person to keep a license.  Not only does the licensee have a felony record for embezzlement, but the person also lied in order to obtain a license.  Is this really the type of person that we want representing our profession?  Apparently the Virginia REB thinks so.  I guess they are hiding behind the criminal conviction review statute.  I, for one, don’t buy it.

If we, as a profession, are not going to adequately police ourselves, how can we expect the public to hold us in high esteem?

Technorati Tags: real estate, realtor, charlottesville, virginia, agent, licensing

  • monitorman
    Couldnt agree more. Check this out as there are other options open to convicted felons Jobs For Convicted Felons
  • Jobs For Felons
    Good on you daniel. At my website Jobs For Felons i hear stories from felons who have given up trying. It's real sad to see. I help most of them but I cant help them all. Well done on turning your own life around !
  • omayra vazquez
    how can an illegal imigrant hold a florida real estate and brokerage license? i just learned that my old real estate person is not legal here.
    it upsets me that someone with no legal ties to this country is able to get a hold of all my personal information and of others. apparently no one really monitors in FREC, how can she be licensed? they own a home and i learned her husband is not legal. and they live better than most americans.
  • BE
    Felons are people too and if they have served thier sentence and are willing to put in the hard work it takes to be successful as a sales person that why should anyone hinder them? sales is hard work - if a person is willing to do it then let them. People deserve a second chance.
  • Daniel Rothamel
    Katrina,

    Thanks very much for the comment. I am very glad that you have been able to learn from your experience and provide a better life for you and your family.

    My issue is not with a felon having a real estate license. I don't get to make that decision, the sate does. In fact, a similar rule has been applied to sports officials in Virginia (my other occupation), and it has caused quite a bit of controversy.

    My issue is that IF that is going to be the rule, then it should be enforced. It should most certainly be enforced when a licensee is found to have deliberately lied on a license application.

    I certainly don't believe that felons are inherently dishonest, but the ones that are should most certainly not have real estate licenses.

    Your honesty will always serve you well, never let cynicism creep in and discourage you from that.

    Thanks again for the comment, and I wish you all the best.
  • Katrina Spencer
    I am a convicted drug felon. I served my time and learned from my mistake. I am out here working my butt off to give myself and my children a better life. I have a natural talent for selling and believe I can be very successful in real estate. My question is when do we stop paying for our crime? I have been very blessed since my release from prison to have 2 great jobs, but I am ready for more in my life. Stop hindering us from becoming more than just employees, start giving us the right to have careers and be inspiration to others who think there is nothing more for us. I never lie on applications and believe it is pointless because the prospective employer will find out with 1 click of a button, then I will be pegged as a liar. No one can trust a liar but anyone can trust someone who made a mistake and owns up to it!!
  • Frankly
    I heard this is a major issue that many boards are trying to deal with . Another issue is illegal immigrants using fake SSNs to obtain a Real Estate license.
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