In addition to those acts prohibited by other sections of this subchapter, a real estate broker, real estate salesperson or property manager may be subject to disciplinary action, and fines not to exceed $2,500 per violation, if he or she has:

(1) Made any substantial misrepresentation;

(2) Made any false promise of a character likely to influence, persuade, or induce;

(3) Pursued a continued and flagrant course of misrepresentation, or made false promises through agents or salespersons, or advertisement or otherwise;

(4) Acted, as a broker or salesperson, for more than one party in a transaction without the knowledge of all parties for whom he or she acted;

(5) As a property manager, disclosed to a third party confidential information which would be injurious concerning the business or personal affairs of a client without prior written consent of the client, except as may be required or compelled by applicable law or rules;

(6) Accepted a fee, commission, or other valuable consideration as a real estate salesperson for the performance of any of the acts specified in this subchapter from any person, except the broker under whose name he or she is or was licensed at the time the fee, commission, or other valuable consideration was earned;

(7) As a property manager, failed to maintain accurate accounting records concerning the property managed for the client and failed to keep the records available for inspection by each client;

(8) Represented or attempted to represent any real estate broker, other than the broker under whose name he or she is licensed, as a real estate salesperson without the express knowledge and written consent of the broker under whose name he or she is licensed;

(9) Placed an advertisement in any publication, or used a sign or business card which was misleading or which constituted false advertising;

(10) Failed, within a reasonable time, to account for or to remit any money, valuable document, or other property coming into his or her possession which belongs to others;

(11) Demonstrated unworthiness or incompetency to act as a real estate broker and real estate salesperson so as to endanger the public interest;

(12) While acting or attempting to act as agent or broker, purchased or attempted to purchase any business or real estate for himself or herself, either in his or her own name or by use of a straw party, without disclosing that fact to the party he or she represents;

(13) Been guilty of any other conduct, whether of the same or of a different character from that prescribed in this section, which constituted fraudulent or dishonest dealing;

(14) Used any trade name or insignia of membership in any real estate organization of which the licensee is not a member;

(15) Disregarded or violated any provision of this subchapter, the rules issued pursuant to this subchapter, or the code of ethics adopted pursuant to this subchapter;

(16) Guaranteed, authorized, or permitted any broker or salesperson to guarantee future profits which may result from the resale of real estate or a business or business opportunity, or the goodwill of any existing business;

(17) Offered any property for rent or otherwise without the written consent of the owner or the owner’s authorized agent;

(18) Offered any property or business for sale or rent or placed a sign on any real estate offering it for sale or for rent without the written consent of the owner or his or her authorized agent;

(19) Made or accepted a listing contract to sell real estate or a business unless the contract is in writing and provides for a definite termination date which is not subject to prior notice from either party;

(20) Failed to furnish a copy of any listing, sale, lease, or other contract relevant to a real estate or business transaction to all signatories thereof at the time of execution;

(21) Accepted compensation from more than one party to a transaction without the knowledge and consent of all other parties to the transaction;

(22) Failed to keep an escrow or trustee accounting of funds deposited with him or her relating to real estate and business transactions, and to maintain records for a period of 3 years, showing to whom the money belongs, the date of deposit, the date of withdrawal, to whom paid, and other pertinent information as the Board may require by regulation; the records to be made available to the Board on demand or upon written notice given to the depository;

(23) Commingled escrow or trustee funds held by the licensee with his or her personal funds, other than a nominal amount necessary to keep active the escrow or trustee account;

(24) Induced any party to a written agreement in a real estate or business sales transaction to break the agreement for the purpose of substituting a new agreement where the substitution is motivated by the personal gain of the concerned licensee;

(25) As a property manager, refused or prevented, directly or indirectly, a prospective lessee inspection of residential real estate upon reasonable request and scheduling for inspections, for the purpose of reviewing, examining, or having a third party examine the real estate and the conditions of its fixtures;

(26) Made any oral or written representations, at or prior to conveyance to a prospective lessee or residential real estate that repairs, renovations, improvements, installation, or additions will be made to the property after the conveyance unless all the representations are furnished in writing to the lessee at or prior to the conveyance of the premises;

(27) Failed to advise the Board in writing within 15 days of the entry of any judgment against the licensee in a civil or criminal proceeding by a court of competent jurisdiction;

(28) Failed, as a broker, to return immediately to the Mayor the license of a salesperson employed by the broker, wherein the salesperson has been discharged or has terminated his or her employment or affiliation with the broker;

(29) Failed, as a salesperson, to place in the custody of the employing broker, as soon after receipt as is practicable, all money, valuable documents, or other property entrusted to him or her by any person dealing with him or her as the representative of the broker;

(30) Accepted, offered, agreed, or attempted to accept, employment for a fee, commission, or other valuable consideration for appraising real estate or a business, contingent upon the reporting of a predetermined value;

(31) Issued an appraisal report on real estate or a business in which the licensee has an undisclosed interest;

(32) Violated, as determined by the Mayor or a court of competent jurisdiction, any provision of Chapter 14 of this title or the rules issued pursuant to that chapter;

(33) Violated, as determined by the District of Columbia Commission on Human Rights, as established by Commissioner’s Order No. 71-224, effective July 8, 1971, the Mayor, or a court of competent jurisdiction, any provision of Unit A of Chapter 14 of Title 2 or the rules issued pursuant to that chapter, or failed to comply with an order of the District of Columbia Commission on Human Rights, as established by Commissioner’s Order No. 71-224, effective July 8, 1971, pursuant to that chapter;

(34) Violated, as determined by the Department of Consumer and Regulatory Affairs, established by the Reorganization Plan No. 1 of 1983, effective March 31, 1983, the Mayor, or a court of competent jurisdiction, any provision of Chapter 39 of Title 28 of the District of Columbia Official Code, or the rules issued pursuant to that chapter, or failed to comply with an order of the Department of Consumer and Regulatory Affairs or its administrative law judge;

(35) Made any oral or written representations, after or prior to conveyance, to a prospective buyer of a business or residential real estate that repairs, renovations, improvements, installations, or additions will be made to the business or real estate after the conveyance, or continued to act on behalf of a seller who made those representations, unless all the representations are furnished in writing to the buyer at least 5 days prior to the conveyance;

(36) Entered into or became a party to any contract, agreement, or understanding, or in any manner whatsoever considered, combined, conspired, or acted with another or others:

(A) To execute a deed or other instrument conveying real estate or a business of any interest therein situated in the District that is not a bona fide sale or transfer, but which is instead a simulated sale or transfer of the real estate, business, or interest therein executed for the purpose and with the intent of defrauding others or misleading others as to the value of the business, real estate or interest therein, and which does so mislead or defraud others, to their detriment; or

(B) To execute a mortgage, deed of trust, or chattel mortgage upon any real estate, business, or interest therein situated in the District that does not represent security for a bona fide indebtedness, but which is a simulated transaction, executed for the purpose and with the intent of misleading or deceiving others as to the value of a business, real estate, or interest therein and which does mislead, deceive, or defraud others to their detriment;

(37) Offered, gave, awarded, promised, used any method, scheme or plan, offering, giving, awarding or promising, free lots in connection with the sale or the offering for sale, or attempt to sell or negotiate the sale of any real estate, business, or interest therein, wherever situated, for the purpose of attracting, inducing, persuading, or influencing a purchaser or prospective purchaser; or offered, promised, or gave prizes of any name or nature for attendance at or participation in any sale of any real estate, business, or interest therein, by auction or otherwise including an owner of the real estate, business, or interest therein;

(38) Knowingly paid a fee, commission, or compensation to anyone for the performance of any service or act within the District defined in this subchapter as the act of a real estate broker or real estate salesperson to any person who was not duly licensed at the time the service or act was performed. This subsection shall not apply to the payment of a referral fee by a real estate broker licensed under this subchapter to a nonresident cooperating real estate broker who is properly licensed in his or her own jurisdiction; or

(39) Knowingly prepared, distributed, or circulated, or caused the preparation, distribution, or circulation of, any false or misleading advertising in connection with the sale, exchange, purchase, lease, or rental of real estate or business.

(Apr. 20, 1999, D.C. Law 12-261, § 1002, 46 DCR 3142.)

1981 Ed., § 47-2853.197.

This section is referenced in § 47-2853.191, § 47-2853.192, and § 47-2853.195.