As the Principal Broker/Owner of two real estate offices, it pretty hard to surprise me anymore. However, what transpired recently is enough to make my blood run cold. The State of Virginia allows CONVICTED FELONS who have served jail time to get REAL ESTATE LICENSES!!! Yes, you read that correctly. Did you KNOW that? I didn't.
In fact,I had always believed as have many of my other colleagues,that criminal background checks were done on new licensees by the Department of Regulation in the State of Virginia. This is not true.
DPOR merely "asks" potential licensees this question when they apply for their real estate license. If they don't answer this question, no checks are ever done. If the question is answered positively, the potential licensee must go before the board for a hearing. I have sat in on one of those hearings and they are rather short and sweet. Even then, NO background checks are done.
I was told by one investigator " there are 300,000 agents and DPOR doesn't have the time to do criminal background checks". Really? Hmmm. First of all I don't think there are 300,000 licensed real estate agents in the State of Virginia. And secondly, why can't Virginia do background checks?
The State of Kentucky requires potential licensees to submit to a criminal background check BEFORE they even take the licensing exam. Kentucky will not allow ANYONE to become a real estate agent if they have ANY felony conviction at any time (EVER!). You can't even become a real estate agent in Kentucky within five years of a misdemeanor conviction or with evidence of dishonesty, untruthfulness, or bad reputation. The FBI cost for this investigation is just $18 paid for by the potential licensees and it takes 10-12 weeks. In other words, Virginia wouldn't even have to DO the background check, they can hire the FBI to do the background check and make it a requirement that the potential licensees pay for it!!!
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I bring all of this up in the first place because I found out I had an agent in my office who had a felony conviction with jail time served for credit card fraud as well as a misdemeanor conviction for fraud. He had also lost his license to sell cars in Virginia for fraudulent behavior. But hey...let's just look the other way and give him a REAL ESTATE license and access to all the HOUSES on the market in the State of VIRGINIA!!! This agent continued to create all kinds of fraud for buyers and sellers in MY office!
OK..you ask..why don't YOU run criminal checks on your agents? Good question. First of all, I have been licensed in real estate since 1979. I have been in small companies and large companies. At NO time have I ever been aware of criminal checks being done on real estate agents. Quite frankly, everyone assumed the STATE was doing these background checks as a matter of course BEFORE they would even ISSUE a real estate license. Now I know better. It's going to make me change my policies.
But, let's be honest here, the State of Virginia has a GOLDEN opportunity to follow the footsteps of Kentucky by first not even allowing convicted felons to sell real estate. I know that's a hard line, but we are here to "promote, perserve and protect the rights of the public." What better way to do that than to have some hard basic guidelines. If you asked your clients how they would feel knowing convicted felons had access to their property do you think they would want you to put a lockbox on their property???
Secondly, Virginia is in the top ten states with a high incidence of real estate fraud. Don't you think putting some teeth into the licensing laws might help clean out some of the riff raff?
People worry all the time about whether or not their house is safe while it is on the market. I reassure them over and over that I have a secure lockbox that can only be opened by real estate agents. I never ever knew that some of those real estate agents are the very ones my sellers should be afraid of letting into their house! Would you knowingly let a stranger, agent or otherwise, who has been convicted of a felony and served jail time, have the keys to your house? I don't think so. So why on earth would the State of Virginia think it is perfectly fine to allow convicted felons who have served jail time to have unlimited access to all the homes on the market in Virginia WITHOUT the knowledge of the sellers or buyers??? What are they thinking???
What is even more frightening, is after I dismissed this agent from my office and filed some very serious complaints (I also found out he was being investigated by DPOR for other complaints BEFORE he came to my office), this agent has just joined ANOTHER office in Northern Virginia and is being ALLOWED to practice real estate while he is being investigated. There is absolutely NO provision in the code or law that allows DPOR to suspend an agent's license while an investigation is going on...no matter how serious the charges are. Makes you feel even safer doesn't it??? Give me a break. I am not talking about suspending someone's license on small complaints, I am talking about multiple incidences through more than ONE broker with a trail of victims. It would appear there is a pattern here, don't you think?
If you look up the name of this agent on the DPOR website there are absolutely NO open or closed complaints showing because none of these complaints has made it through the painfully slow investigation process to adjudication. How can ANYONE, Broker, seller or buyer protect themselves? I check out ALL my agents on the DPOR website. But really...what good is it? I now know that if an agent actually has public complaints that show up on this website...well..they MUST be an ax murderer!
So...coming to a home near you...maybe even yours... is a licensed Virginia real estate agent who is a convicted felon and has served jail time for fraud or drug use or...and DPOR won't or can't do a thing.
