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Practice Of Real EstateLicense_lawHARD

Broker Carl is licensed in Washington and also holds a real estate license in Oregon. Carl is convicted of wire fraud in federal court in connection with a mortgage scheme he operated in Oregon. Carl did not conduct any transactions in Washington related to the fraud. The Washington DOL initiates disciplinary proceedings against Carl's Washington license. Carl argues that because the fraud occurred entirely in Oregon and did not involve Washington clients or properties, the Washington DOL lacks authority to discipline him. Under RCW 18.85, which statement most accurately describes the DOL's authority?

Correct Answer

B) The DOL may discipline Carl because a felony conviction, regardless of where it occurred, is a ground for disciplinary action under RCW 18.85.

Under RCW 18.85.361, a conviction of a crime — including a federal felony conviction — is an explicit ground for disciplinary action against a Washington real estate license, regardless of where the crime occurred or whether it involved Washington clients or properties. The statute focuses on the licensee's fitness and trustworthiness, not on the geographic location of the misconduct. A federal wire fraud conviction directly bears on Carl's fitness to hold a Washington real estate license.

Answer Options
A
Carl's argument is correct; the DOL may only discipline a licensee for conduct that occurred within Washington State.
B
The DOL may discipline Carl because a felony conviction, regardless of where it occurred, is a ground for disciplinary action under RCW 18.85.
C
The DOL must defer to Oregon's licensing authority and may only act after Oregon takes action against Carl's Oregon license.
D
The DOL may discipline Carl only if the federal conviction is also prosecuted at the state level in Washington.

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Related Topics & Key Terms

Key Terms:

criminal_convictionout_of_state_conductDOL_jurisdictionfederal_convictionRCW_18.85

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