Calif. broker sues over new Neb. real estate rules

By TIMBERLY ROSS

OMAHA, Neb.

A California woman whose website advertises property for sale says new rules governing Nebraska's real estate industry should be thrown out for being too broad, according to a federal lawsuit filed Thursday.

Leslie Rae Young of Volcano, Calif., filed the challenge a little more than a week after being ordered by the Nebraska Real Estate Commission to stop advertising Nebraska properties through her website, http://www.elist.me.

Her lawsuit says changes to the Nebraska Real Estate License Act that took effect July 15 are unconstitutional because they give the commission jurisdiction beyond Nebraska. She says the act does not provide enough guidance on whether she must be licensed in the state, among other things.

Young is a real estate broker licensed in California, but not in Nebraska.

The Nebraska attorney general's office didn't have an immediate comment.

Court filings include a cease-and-desist letter sent to Young by the Nebraska Real Estate Commission, dated July 20. The letter says Young is considered a broker under Nebraska law but is operating without a state license and must stop. Failure to do so could result in criminal charges and fines up to $1,000 per day, the letter states.

Young says in other court filings that her website offers advertising to homeowners who wish to sell their properties "without the use of a commission-charging realtor." Her clients, including at least one in Nebraska, are charged a flat-fee for her advertising service, the court filings say.

Young says that unless the law is thrown out, she "will be faced with the choice of risking lawsuits if I break my advertising contract(s) with the Nebraska homeowners" or fighting the cease-and-desist order through a commission hearing, which would waive her right to contest the law. If she were to appeal to the commission and fail, Nebraska could report the matter to the California Real Estate Commission, which could sanction her, Young says.

Young is asking to have changes to the Nebraska law thrown out and for attorney's fees. Her attorney has also filed a motion for a temporary injunction blocking the law.