58-3050. Refusal to grant or renew; revocation, suspension or restriction
of license; censure of licensee; civil fines; procedures.
- Except as provided in subsection (b) and (c), the commission may
refuse to grant or renew a license and the license of any licensee
may be revoked, suspended, conditioned or restricted or a licensee
may be censured, if:
- The licensee has committed a violation of this act or rules
and regulations adopted hereunder, or the brokerage relationships
in real estate transactions act or rules and regulations adopted
- the licensee has entered a plea of guilty or nolo contendere
to, or has been convicted of any misdemeanor which reflects on
the licensee's honesty, trustworthiness, integrity or competence
to transact the business of real estate;
- the licensee has been finally adjudicated and found to be guilty
of violation of the federal fair housing act (42 U.S.C. 3601 et
seq.) or K.S.A. 44-1015 through 44-1029, and amendments thereto;
- the licensee has obtained or reinstated, or attempted to obtain
or reinstate, a license by false or fraudulent representation;
- the licensee has violated any lawful order or directive of
the commission; or
- the licensee has committed a violation in another state and
disciplinary action taken against such licensee resulted in the
suspension, probation or revocation of such licensee's real estate
license in such other state.
- Except as provided in subsection (c), the commission shall suspend
or revoke the license of any licensee who has entered a plea of guilty
or nolo contendere to, or has been convicted of any felony.
- The provisions of subsection (b) shall not apply to any person who:
- Is currently licensed under this act;
- has entered a plea of guilty or nolo contendere to, or has been
convicted of any offense specified in subsection (b); and
- has disclosed such plea or conviction in such person's application
for any license or renewal thereof on or before July 1, 2007,
prior to the commission's action on such application.
- In addition to or in lieu of any other administrative, civil or
criminal remedy provided by law, the commission, in accordance with
the Kansas administrative procedure act and upon a finding that
a licensee has violated a provision of this act or rules and regulations
adopted hereunder, or the brokerage relationships in real estate
transactions act or rules and regulations adopted thereunder, may
impose on such licensee a civil fine not exceeding $1,000 for each
- A civil fine not exceeding $5,000 per violation may be imposed
if the commission makes specific findings that aggravating circumstances
exist and that the licensee:
- Misappropriated funds belonging to another person;
- engaged in fraud or made any substantial misrepresentation;
- represented to a lender, guaranteeing agency or any other interested
party, either verbally or through the preparation of false documents,
an amount in excess of the true and actual sale price of the real
estate or terms differing from those actually agreed upon;
- committed forgery or signed or initialed a contractual agreement
on behalf of another person in a real estate transaction unless
authorized to do so by a duly executed power of attorney; or
- intentionally failed to disclose to a clietn or customer all
adverse material facts actually known by the licensee regarding
environmental hazards affecting the property, material defects
in the real property, defects in the title to the real property
or the client's or customer's ability to perform under the terms
of the agreement.
- For the purposes of subsection (d), the term "aggravating circumstances"
- The licensee's conduct involved fraud or deceit; and
- the licensee's conduct directly resulted in substantial loss
or created a significant risk of substantial loss to a customer
or client; or
- the licensee's conduct resulted in substantial financial gain
to the licensee; or
- the licensee has a history of prior disciplinary actions involving
violations similar to the violations described in subsection (d)(2)
- In all matters pending before the commission, the commission shall
have the power to revoke the license of any licensee who voluntarily
surrenders such licensee's license or who does not renew such license
pending investigation of misconduct or while charges of misconduct
are pending or anticipated.
- If a broker or salesperson has been declared incompetent by a court
of competent jurisdiction, the commission shall suspend the broker's
or salesperson's license for the period of disability.
- Except as provided by paragraph (2) of this subsection, no complaint
alleging violation of this act or rules and regulations adopted
hereunder, or the brokerage relationships in real estate transactions
act or rules and regulations adopted thereunder, shall be commenced
more than three years from the date of the occurrence which is
the subject of the complaint.
- Unless the violation is not reasonably ascertainable, complaints
alleging violation of subsection (a)(4) or (a)(5) shall be commenced
within three years from the date of the occurrence of the violation.
If the violation is not reasonably ascertainable, complaints alleging
violation of subsection (a)(4) or (a)(5) shall be commenced within
three years from the date of violation is ascertained by the commission.
- All administrative proceedings pursuant to this section shall be
conducted in accordance with the Kansas administrative procedure act.
- Notwithstanding any provision of this act or the brokerage relationships
in real estate transactions act to the contrary, the commission may
use emergency adjudicative proceedings, as provided by K.S.A. 77-
536, and amendments thereto, to summarily suspend the license of any
licensee if the commission has reasonable cause to believe that the
licensee's trust account is in unsound condition or that the licensee
is misappropriating funds belonging to other persons.
- If a licensee has entered a plea of guilty or nolo contendere to,
or has been convicted of, any felony charge, the commission may use
emergency adjudicative proceedings, as provided by K.S.A. 77-536,
and amendments thereto, to suspend or revoke the licensee's license.
- When the real estate license of an individual is revoked and that
individual's name is included in the trade or business name of a real
estate brokerage business, the commission may deny continued use of
the trade or business name if, in the opinion of the commission, it
would be confusing or misleading to the public.
- The commission shall be authorized to recover from the fine imposed
the commission's actual costs to investigate and prosecute a disciplinary
case against a licensee, including attorney fees. The portion of the
fine amount collected that equals the commission's actual costs related
to the investigation and prosecution of the case and attorney fees,
as certified by the executive director of the commission to the state
treasurer, shall be credited to the real estate commission fee fund.
The balance of the fine amount collected shall be credited to the
state general fund.
(L. 1980, ch. 164, § 17; L. 1984, ch. 313, § 88; L. 1986,
ch. 209, § 10; L. 1988, ch. 197, § 3; L. 1991, ch. 163, §
3; L. 1995, ch. 252, § 19; L. 1996, ch. 212, § 6; Revived,
L. 1997, ch. 65, § 11; L. 1997, ch. 65, § 12; L. 2002, ch.
82, § 6; L. 2004, ch. 82, § 2; L. 2007, ch. 88, § 3;
L. 2008, ch. 155, § 4; L. 2009, ch. 7, § 3; July 1.)