It might seem like a trick question to ask how to avoid a real estate commission complaint. After all, you just have to follow the rules, right? While that is true to an extent, there are two factors to understand. The first is that you need to know what the rules are, and the second is related to developing relationships with your residential and commercial real estate clients. Good relationships and communication with your clientele can help avoid situations where a client may believe they were wronged.
You may not always be able to avoid a real estate commission complaint even if you know and follow all the rules, but you can certainly reduce the chance of receiving the dreaded brown envelope. The North Carolina Real Estate Commission doesn’t always move forward with the complaints they receive. If their initial investigation determines the complaint would not be a violation of their rules if verified, they do not proceed. Receiving a brown envelope doesn’t mean you are guilty. It simply means that if the allegation is verified, you would be in violation. It is your responsibility at this point to cooperate with the investigation and provide any documentation you can to show the complaint is false or inaccurate.
Let’s return to avoiding a real estate commission complaint by knowing the rules. This is where intense study when obtaining your broker license and continued education each year comes in. The Commission provides plenty of programs and publications that can help you understand the best practices and what rules are in place. In addition, providing your clients with information and documentation related to their pending transactions helps them stay informed, so they know what to expect.
If you do receive a real estate brown envelope in spite of your best efforts to comply with all rules, your first step is to reach out to an attorney. At The Brown Envelope Attorney, we serve real estate professionals in North Carolina and guide them through the process of responding to a complaint. Reach out today with any questions you might have or to sit down and discuss the letter you have received.