What Should You Do if You Receive Notice of a Real Estate License Investigation?

 Posted on June 09, 2026 in Medical license defense

Receiving notice that your real estate license is under investigation is alarming. The decisions you make in the first few days after getting that notice can have a real impact on how the case turns out. The wrong move early on can make things harder to fix later. If you are a real estate agent or broker in Indiana facing a license investigation in 2026, a Lafayette, IN professional license defense lawyer can help you respond the right way and fight to protect your career.

What Does a Real Estate License Investigation Mean?

A real estate license investigation means that the Indiana Professional Licensing Agency, or IPLA, or the Indiana Real Estate Commission has received a complaint or identified a concern about your conduct as a licensee. They are looking into whether you violated Indiana law or the rules that govern real estate professionals in the state.

This does not automatically mean your license will be suspended or revoked. An investigation is the beginning of a process, not the end. You will have the chance to tell your side of the story. An experienced professional license defense attorney can help you do so more effectively.

What Are the Most Common Reasons Real Estate Licenses Are Investigated?

In Indiana, real estate licensees are regulated under Indiana Code Section 25-34.1, which sets out the rules and standards that agents and brokers must follow.

Common reasons a real estate license investigation might be opened include:

• A complaint from a client, buyer, or seller about how a transaction was handled

• Allegations of misrepresentation or failure to disclose material facts about a property

• Accusations of commingling client funds with personal or business funds

• Claims of acting outside the scope of your license

• Allegations of fraud or dishonest dealing

• A criminal charge or conviction that the licensing board believes reflects on your fitness to hold a license

Some investigations are triggered by a formal complaint from a member of the public. Others are initiated by the commission itself if it becomes aware of a potential violation through other channels.

What Should You Do Immediately After Receiving Notice That Your Real Estate License Is Under Investigation?

Do not respond to the notice without first speaking to an attorney. It may feel natural to want to explain yourself or clear things up quickly. However, anything you say or submit in writing becomes part of the record. A poorly worded response can create problems even when the underlying facts are on your side.

Read the notice carefully and note any deadlines. Investigation notices typically require a response within a specific timeframe. Missing that deadline can make it more difficult to defend yourself and may negatively affect the outcome of the investigation.

Gather all documents related to the transaction or conduct at issue. That includes contracts, emails, text messages, closing documents, and any communications with the parties involved. Your attorney will need to review everything to understand the full picture before advising you on how to respond.

What Is the Investigation Process in Indiana?

After a complaint is filed, the matter may be reviewed by the appropriate licensing authorities, who may request a written response and supporting documentation before determining what steps to take next.

From there, the commission may schedule an informal conference where you have the opportunity to present your side of the situation. Depending on how the investigation goes, possible outcomes include dismissal of the complaint, a consent agreement, a formal hearing, or disciplinary action.

Disciplinary action under Indiana Code Section 25-1-11-12 can range from a formal reprimand to a fine, license suspension, or permanent revocation. The severity depends on the nature of the violation and your history as a licensee. Having strong legal representation throughout this process can affect the outcome significantly.

What Happens at a Formal Hearing?

If the investigation leads to a formal hearing, it functions similarly to a court proceeding. You have the right to be represented by an attorney, present evidence, call witnesses, and challenge the evidence presented against you. The hearing officer or commission panel will then make a determination about whether a violation occurred and what the appropriate consequence should be.

This stage of the process is where having an attorney who understands professional license defense becomes especially important. The rules of evidence and procedure at these hearings are specific, and knowing how to navigate them can make a meaningful difference in the result.

What Can You Do to Protect Your Real Estate License?

If the complaint involves a transaction, review your file thoroughly to make sure everything was documented properly. Good documentation is one of the strongest defenses available in a real estate license case. If there are gaps in the file, your attorney can help you address them in a way that does not create additional problems.

If the investigation involves allegations of financial misconduct, such as commingling of funds, having a clear paper trail that shows exactly how client money was handled can go a long way toward resolving the matter in your favor.

Schedule a Free Consultation With Our Indiana Real Estate License Defense Attorney

Attorney Joseph Bogdan is a registered pharmacist and attorney who serves as an expert witness in complex licensing and pharmaceutical cases. Our firm offers skilled professional license defense representation tailored to the client’s specific situation. If you are a real estate professional in Indiana facing a licensing investigation, contact a Lafayette, IN professional license defense lawyer at The Law Offices of Joseph J. Bogdan, Inc. by calling 463-219-2612.