Key Takeaways
- OREC can investigate complaints, conduct hearings, and impose disciplinary actions
- Violations can result in license denial, suspension, revocation, or fines
- Common violations include misrepresentation, commingling, unlicensed activity, and disclosure violations
- Practicing without a license is a criminal offense in Oklahoma
- Licensees have due process rights including notice and hearing before disciplinary action
Last updated: January 2026
License Law Violations & Discipline
OREC has authority to investigate complaints and take disciplinary action against licensees who violate the Oklahoma Real Estate License Code.
Common Violations
Misrepresentation and Fraud
| Violation | Description |
|---|---|
| Material misrepresentation | False statements about important facts |
| Omission | Failing to disclose known material defects |
| Fraud | Intentional deception for personal gain |
| False advertising | Misleading marketing or claims |
Trust Account Violations
| Violation | Description |
|---|---|
| Commingling | Mixing client and broker funds |
| Conversion | Using client funds without authorization |
| Failure to deposit | Not depositing funds within 3 banking days |
| Poor records | Inadequate documentation |
| Unregistered account | Failure to notify OREC of trust accounts |
Broker Relationship Violations
| Violation | Description |
|---|---|
| Disclosure failures | Failing to provide required written disclosures |
| Undisclosed services to both parties | Acting for both parties without proper notice |
| Breach of duties | Violating mandatory duties to parties |
| Undisclosed interest | Failing to disclose personal interest |
| Confidentiality breach | Disclosing confidential information without consent |
Unlicensed Activity
| Violation | Description |
|---|---|
| Practicing without license | Performing activities requiring a license |
| Practicing on expired license | Continuing to work after expiration |
| Paying unlicensed persons | Compensating unlicensed individuals for licensed activities |
| Wholesaling without license | Operating as unlicensed real estate activity |
Warning: Practicing real estate without a license is a criminal offense in Oklahoma.
Disciplinary Process
Investigation
- Complaint filed with OREC (or OREC initiates investigation)
- Investigation conducted by OREC staff
- Evidence gathered (documents, interviews, audits)
- Determination made whether to proceed
Hearing Process
If OREC proceeds with disciplinary action:
| Step | Description |
|---|---|
| Notice | Licensee notified of charges |
| Hearing | Formal hearing before Commission |
| Evidence | Both sides present evidence |
| Decision | Commission issues written decision |
| Appeal | Licensee may appeal to court |
Due Process Rights
Licensees have the right to:
- Notice of charges
- Hearing before adverse action
- Representation by attorney
- Present evidence and witnesses
- Appeal unfavorable decisions
Disciplinary Actions
OREC may impose various sanctions:
| Action | Description |
|---|---|
| Denial | Refuse to issue license |
| Suspension | Temporary loss of license |
| Revocation | Permanent loss of license |
| Reprimand | Formal warning |
| Fine | Monetary penalty |
| Probation | Conditional license with restrictions |
| Education | Required additional training |
Factors Considered
| Factor | Impact |
|---|---|
| Severity of violation | More serious = harsher penalty |
| Prior disciplinary history | Repeat violations = stricter |
| Harm to consumers | Consumer damage = more serious |
| Cooperation | Cooperation may reduce penalty |
| Rehabilitation | Remedial steps may help |
Grounds for Discipline
The Oklahoma Real Estate License Code specifies numerous grounds for discipline, including:
- Making substantial misrepresentation
- Making false promises
- Pursuing continued course of misrepresentation
- Acting as undisclosed principal (buying/selling for self without disclosure)
- Representing both parties without proper disclosure
- Commingling funds
- Paying or receiving undisclosed compensation
- Failure to account for funds
- Demonstrating unworthiness or incompetence
- Violating Oklahoma Real Estate License Code or Rules
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Test Your Knowledge
Which action is a criminal offense in Oklahoma?
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B
C
D
Test Your Knowledge
What rights does an Oklahoma licensee have before OREC takes disciplinary action?
A
B
C
D
Test Your Knowledge
Which of the following is NOT a disciplinary action OREC can impose?
A
B
C
D