2 Real Estate Professionals Lose Licenses Over Financial Issues
Brokers are in the real estate field to make money, and with people buying and selling houses every day, there is a lot of money to be made. However, some people make bad financial decisions, and these choices can affect not only themselves, but employees and other companies as well.
Two real estate professionals, who founded Prime Real Estate in Indiana are now facing license suspension for serious financial issues. The company, recently rebranded as Lifestyle Real Estate, was named one of the fastest-growing businesses in America between 2016 and 2018, during which it grew by 197% over the previous three years. The company boasts 400 real estate agents across the United States.
However, the state of Indiana sought license suspension after it was discovered that Lifestyle Real Estate had failed to take care of numerous financial obligations. This irresponsible behavior led to significant financial damages for the company’s brokers, employees and clients.
Lifestyle Real Estate was delinquent with utility bills. Then, on September 3, employee paychecks failed to clear. A home seller, a home buyer and several real estate agents filed complaints, claiming that the company failed to pay them money they are owed.
There were several incidents that occurred. One broker personally paid for repairs to a property. She asked to be reimbursed the $7,000 by Lifestyle Real Estate, but the company came up with numerous excuses as to why they could not give her the money. The company also owed her $18,000 for the demolition of a property, but she was not paid that either. There was another situation in which Lifestyle Real Estate owed a title company $25,000, but did not have the funds available.
Other brokers began noticing issues with Lifestyle Real Estate’s finances. Brokers started to see increasingly longer delays in receiving their commission checks. Delays began at three days and extended to one week. Many people experienced delays with receiving commission checks and earnest money.
On September 19, the Indiana Real Estate Commission board decided to suspend the company founders’ real estate licenses through a unanimous vote. Their licenses are currently under suspension for 90 days. A trustee has been appointed to close out Lifestyle Real Estate.
Despite this, a company spokesperson claims that Prime Real Estate is restructuring under new management. The company plans to continue business operations at one location, despite an eviction notice. It is expected that the two founders’ real estate licenses will eventually be reinstated.
Keep Your License With Help From a Tampa Real Estate Broker License Lawyer
The real estate industry involves a lot of money, which means ethics are important. Not being financially responsible can come with serious consequences, such as license loss.
If you are facing issues administrative issues with your real estate license, seek help from Tampa real estate broker license lawyer David P. Rankin. He has been involved in several hundred license discipline proceedings before the Florida Real Estate Commission and was the attorney for the Greater Tampa Realtors for 18 years. Mr. Rankin has represented more than 150 brokers and sales associates before the Florida Real Estate Commission. Schedule a consultation today by filling out the online form or calling (813) 968-6633.