Key facts
- Real estate transactions often involve disclosures about property defects and agency relationships.
- Information about an agent's or broker's restricted license is typically public record but not proactively disclosed.
- The author argues that a searchable database is not equivalent to informed consent.
- Restrictions on real estate licenses can stem from administrative errors or serious misconduct.
- A proposed disclosure form would state the license is restricted, name the regulator, provide dates, and link to the public order.
- Disclosure should occur before clients sign agency agreements or agents affiliate with brokers.
Troy Palmquist, writing for HomeCode Advisors, argues that the real estate industry should implement mandatory disclosures for agents and brokers whose licenses are restricted due to disciplinary actions. While acknowledging that such disciplinary actions are often publicly accessible through regulatory bodies like the California Department of Real Estate, Palmquist contends that this information is practically hidden from consumers and agents seeking to affiliate with brokerages. He draws a parallel to existing disclosure requirements for property defects and agency relationships, emphasizing that informed consent is a cornerstone of real estate transactions.