How Can A Real Estate Agent Get Their License Revoked?

How Can a Real Estate Agent Get Their License Revoked?

As one of the best real estate schools in Massachusetts, we often talk about how people can get their real estate licenses. But, what about the opposite? How do agents get their licenses revoked?

Knowing what to do is great, but you should also know what not to do. So today, let’s go over all the ways that a practicing agent can have their license revoked – this way, you can void these practices altogether.

Neglecting License Requirements

Procrastination hits us all. But when it comes to renewing your real estate license, do not wait for the last second. Always keep in mind that practicing agents require 12 hours of continuing education every 2 years in Massachusetts. If you don’t meet this requirement by the deadline, you can have your license revoked. 

And until you have resolved this issue, you won’t be able to practice – which can be detrimental to your business and reputation. Imagine explaining to a current client that you can no longer help them due to losing your license. In some cases, this can also carry a fee. Not great.

Breaching Confidentiality

Trust is one of the most essential foundations of the real estate industry. When a client comes to you, they are trusting that you have their best interest at heart. This especially applies to private information.

This may seem like common sense, but confidentiality isn’t always as cut and dry as it seems. Can you share information about a listing? Most likely. But including personal information, such as your client’s career, marital status, income, or family information are typically off-limits. 

So be extra careful. Especially when posting on social media. Breaching confidential information is one way street to getting your license revoked by the state commission.

Information Disclosure (Or Lack Thereof)

inspecting a home

Continuing the subject of trust (see a pattern?) – it’s essential that you are always honest and upfront in real estate. There are a set of disclosure obligations that must be followed in Massachusetts when selling a home. 

Disclosure obligations in Massachusetts include:

  • – Any financial interest on your behalf
  • – If the property contains lead paint
  • – If the property has a septic tank

Psychologically Impacted Property

You are not required by law to disclose properties that have been “psychologically impacted” in Massachusetts. However, if you intentionally hide information about a property from clients, this could damage your reputation. So tread carefully. 

Below, you will find the full regulation and what a psychologically impacted property pertains:

“Section 114. The fact or suspicion that real property may be or is psychologically impacted shall not be deemed to be a material fact required to be disclosed in a real estate transaction. ”Psychologically impacted” shall mean an impact being the result of facts or suspicions including, but not limited to, the following:

(a) that an occupant of real property is now or has been suspected to be infected with the Human Immunodeficiency Virus or with Acquired Immune Deficiency Syndrome or any other disease which reasonable medical evidence suggests to be highly unlikely to be transmitted through the occupying of a dwelling;

(b) that the real property was the site of a felony, suicide or homicide; and

(c) that the real property has been the site of an alleged parapsychological or supernatural phenomenon.

No cause of action shall arise or be maintained against a seller or lessor of real property or a real estate broker or salesman, by statute or at common law, for failure to disclose to a buyer or tenant that the real property is or was psychologically impacted.

Notwithstanding the foregoing, the provisions of this section shall not authorize a seller, lessor or real estate broker or salesman to make a misrepresentation of fact or false statement.”

Consequences of Lying or Neglecting to Disclose

There are severe consequences for lying or neglect when it comes to disclosure. You could face heavy fines, a lawsuit, and have your license revoked.

Unethical Financial Practices


The real estate industry deals with a lot of money – like, A LOT of money. As such, it’s critical to follow local ethical guidelines regarding the handling of finances. There’s no excuse for misunderstanding or failing to comply with regulations.

Taking part in mortgage fraud or mishandling a client’s money is a surefire way to get yourself into legal trouble, let alone having your license revoked.

Do The Right Thing

We understand that navigating legalities isn’t always easy. But as a licensed real estate professional, it’s your responsibility to know to fully understand and follow Massachusetts real estate laws and regulations. Luckily, there are courses to help guide you through, such as those offered here at the Greenwood Real Estate School.

But always remember, when in doubt, do the right thing.

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