Nebraska Real Estate Commission Prevails in Unlicensed Practice Appeal


July 11, 2016

The Nebraska Real Estate Commission has received a favorable opinion regarding the enforceability and constitutionality of its unlicensed practice statutes.  The United States Court of Appeals affirmed the trial court’s opinion dismissing the Leslie Rae Young v. The Nebraska Real Estate Commission case.  

In 2010 the Commission issued a cease and desist order against Young after discovering Nebraska properties listed by Young on Realtor.com and other websites.  Young challenged the order by filing suit in federal court, challenging the validity and enforceability of the order on various constitutional claims.  The desicion states in part

The License Act is rationally related to the legitimate State interest in ensuring the competency and honesty of those who hold themselves out as providing professional brokerage services to the sellers and buyers of Nebraska real estate. One can argue that the manner in which the License Act furthers that interest is too costly, too parochial, or fails to effectively serve those who prefer to sell their own properties. But those are legislative issues that do not cast doubt on the facial validity of the statute Nebraska’s legislators have found appropriate."

With this decision the rights of states to license and require licensing of third parties who are acting in the capacity of real estate brokers has been affirmed.

The complete opinion can be found here: http://www.nrec.ne.gov/pdf/misc/LRYAppealOp.pdf

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