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It Just Keeps Getting Better and Better...

Last week I wrote about how the state of Virginia allows convicted felons to hold real estate licenses. I have done more investigation this week and discovered that the Virginia legislature was actually going to pass a law that banned convicted felons from holding real estate licenses a couple of years ago but that for some reason it just didn't get done! Why? I mean just WHO are they protecting? The felons???

Then I got to thinking about this even more. Why isn't there some sort of NATIONAL standard? This should be something NAR could really stand behind. I mean really, what does the Realtor logo stand for if convicted felons are allowed to get real estate licenses? I found out that Virginia was not the only state with this laspe in judgement. Let's face it, you can't even VOTE if you are a convicted felon...but you can have access to people's homes and engage in contract writing?

Since we are coming off the heels of and dealing with the massive mortgage and housing fall out the last market has left us with, wouldn't this be an opportune time to actually DO something to prevent as much fraud as possible in the future? We really have some serious house cleaning to do in order to regain the trust of the public.

Do you know if your state does criminal checks on every real estate agent? Does your state allow convicted felons to have real estate licenses? Please let me know. I would love to post another blog with that information. Stay tuned...

Posted by Shawn Harris on 03/28/2008 12:13 PM

Comments (14)

virginia, real estate, laws, legislature, protect, fraud

14 Comments on It Just Keeps Getting Better and Better...

MAR

2008

The legislature is clearly busy trying to figure out ways to slap us with more taxes...and not solve any real issues. Sad to keep hearing the dysfunction of government.

APR

2008

Shawn,

As a broker here in the State of Washington, new agent sign-ups or transfer, fill out a one page form that has a few questions such as: Are you a convicted felon or sex predator ? Etc.....

I send the form to The Department of Licensing and that seems to be it.....I guess they check the responses....never had anyone say yes to a question. Not exactly the best fail- safe system known to man. The public holds most agents in such low esteem, I don't think being a felon will make much of a difference anyway....Sad to say that..

California is quite strict in this regard. I've come across several people in the last few years who have had their license applications turned down or significantly delayed. And, these have usually been for minor infractions.

Not sure what the rule is here in MT about this...I will have to do some checking into that part....thanks.

APR

2008

Hi, Kim, Mary and Clint:

Thank you so much for responding. I hope all of you do check into your laws and let me know. I am working on a national standard. Call me naive, but I think we owe the public more than that and it's up to us..the Realtors to insist on strong standards. If we do that, perhaps we can regain the public's trust. I have to believe there are more Realtors who are looking after the good of the public than not.

I have a personal background check donw on all agents I look at bringing on. Being a Felon is such a wide general term. It could have been a DUMMY attach of a young person who now at 50 is an upstanding citizen. I guess I would have to look at the time of when it happened and the offense. I know two very successful business people that did have a Felony when they were young...and today...I would welcome them with open arms!

Alabama looks at each one on a case by case basis. They do a full, thorough background check. If it is a felony that is old they may allow the person to receive their license IF they have been on the straight and narrow for a long time. I sat through a hearing one time (just to see what they are like) and an woman was trying to get her license and she admitted on her application that she had a felony coviction for shoplifting. She tried to pass it off as a one time thing and that she had changed. Alabama employs an investigator and he busted her. He uncovered numerous other times she had shoplifted and she did not get a license.

APR

2008

That is unreal. There is a story in my neck of the woods where a guy that swindled miliions of dollars from the elderly, tried to pass the state exam to get an LO cert but failed due to background reasons. He then turned around and a bank hired him to do their reverse mortgage programs. It is amazing what people/companies will do for a buck!

Makes me sick

Hello, Casey:

Mortgage brokers in Virginia tell me you don't even have to licensed or take continuing education in Virginia to be a mortgage broker!!! Tell me, how is the industry even policed without licensing?

Hi, William:

I understand exactly how you feel and how having such a hard line on felony convictions might be unfair to those who really have straightened out their lives. However, I see no way to insure the public's safety without tougher standards. Obviously, having a board hearing has not prevented the fraud, etc...I experienced by the former felon agent who came into my office. Does anyone have any other suggestions?

In Alabama, I know they do not allow anyone who's had felony convictions for fraud, theft, etc. They are looking to see if it is a conviction that would be a risk to the public. But if someone has a drug conviction 20 years ago and have been squeaky clean ever since, they can probably get their license. It is a hard call to make.

APR

2008

Hi, Amber:

The fellow who had been in my office had his felony conviction for credit card fraud when he was 19. He is 35 now and still committing fraud. Perhaps if people who have committed felonies are allowed to have licenses there has to be at the very least a way those licenses can be suspended or revoked immediately if there are any complaints.

In my case, I was the third office this man had joined and done his business. He left a trail of people behind him AND even today if you go to the Department of Professional and Occupational Regulation ( DPOR) website in Virginia, you'll see there are NO open complaints against this man even though we KNOW there are a multitude of complaints. He is now practicing real estate in another Northern Virginia office sending me taunting emails telling me there is NOTHING I can do. To say I am frustrated is putting it mildly.

DEC

I THINK THAT YOU ARE LOOKING AT THINGS FROM ONLY ONE SIDE JUST BECAUSE SOMEONE HAS A FELONY DOSENT MEAN THEY ARE A BAD PERSON YES ALOT ARE BUT NOT EVERYONE I WAS CONVICTED OF A FELONY 10 YEARS AGO FOR BEING IN ASLEEP IN THE BACK SEAT OF THE CAR WHEN ANOTHER GUY COMMITTED THE CRIME AND THE POLICE WOKE ME UP AND JUST BECAUSE I WAS IN THE CAR I WAS CHARGED ALSO AND THAT WAS THE FIRST AND ONLY TIME I HAVE EVER BEEN IN TROUBLE SO EVERYONE ISN'T BAD AND IM TRYING TO MAKE MY LIFE BETTER FOR MY FAMILY IM IN THE MILITARY NOW AND JUST GOT BACK FROM IRAQ FIGHTING FOR OUR COUNTRY AND NOW IM JUST TRYING TO GET SOMETHING GOING FOR WHEN I GET OUT OF THE MILITARY TO CONTINUE TO BETTER MY FAMILY BUT I GUESS IT IS OK TO GO AND RISK MY LIFE FOR YOU AND YOUR FAMILY AND EVERYONE ELSE'S BUT ITS NOT OK FOR ME TO TRY TO SELL A HOUSE I THINK YOU NEED TO GET OFF YOUR HIGH HORSE AND REALIZE THAT BAD THINGS DO HAPPEN TO GOOD PEOPLE.

MAR

Here in Oklahoma they just started doing back ground checks a year ago. Prior to that, there was an application process where the applicant had to check a box and if they said "No" they had never been convicted of a felony - good enough. Now an applicant must be fingerprinted and submit to a full criminal back ground check. Anyone who had a license prior to the law going into effect was grandfathered in. I agree with Joseph that sometimes in our youth we make poor decisions that have consequences that seem severe. However, our job is to protect the public. Are we protecting the public by letting sex offenders get licensed? How many times have you showed a house in the summer in the middle of the afternoon and the kids are in the backyard while the parents are at work? We need to do a better job at screening applicants. I think a national standard is a fantastic idea, with an appeal process for the kid who was in the wrong place at the wrong time and has been squeaky clean ever since.

Kathy Fowler
Owner, Broker Associate
EXIT HomeSellers REALTY
www.EnidEXIT.com

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