The Most Common Real Estate Commission Complaints

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If you have received the dreaded North Carolina real estate brown envelope, the term given to a real estate commission complaint notification, you are understandably concerned. The good news is that, of the roughly 1,000 complaints they receive each year, the majority are resolved without disciplinary action. It is always best to hire a real estate attorney to represent you if you are to have the best chance of avoiding a sanction. Of course, the best thing to do as a real estate broker is to understand the most common real estate commission complaints to avoid them in the first place.

The Most Common Real Estate Commission Complaints

  • Failure to disclose material facts
  • Trust account mismanagement
  • Improper handling of disputed earnest money or tenant security deposits
  • Improper charges against a tenant security deposit
  • Failure to disclose a short sale situation
  • Unauthorized practice of real estate law, such as drafting legal documents
  • Contract acceptance disputes, particularly related to non-binding oral agreements
  • Representing both sides of a transaction without all parties’ knowledge of conflict of interest
  • Insufficient level of communication
  • Allegations of loan fraud

If you would like to know more about what a real estate commission complaint is and how to defend yourself should you receive a brown envelop from the Commission, reach out to us at The Brown Envelope Attorney. We can help you understand what the complaint means and how to conduct yourself during the investigation process to achieve the most favorable outcome.