Fed judge blocks changes in Neb. real estate rules

By TIMBERLY ROSS

OMAHA, Neb.

A federal judge has temporarily blocked enforcement of new rules governing Nebraska's real estate industry.

U.S. District Judge Joseph Bataillon's ruling also prohibits the Nebraska Real Estate Commission from sanctioning Leslie Rae Young, a California woman who's challenging the rules change.

Thursday's ruling came hours after Young filed her lawsuit, which argued that changes to the Nebraska Real Estate License Act that took effect July 15 were unconstitutional because they give the commission jurisdiction beyond Nebraska. She said the act did 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. Last week, she was ordered by the commission to stop advertising Nebraska properties through her website, http://www.elist.me.

Nebraska attorney general's office spokeswoman Shannon Kingery said the office was reviewing the case and didn't have an immediate comment.

Bataillon has scheduled an Aug. 3 hearing in the case.

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.

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 within 10 days, which would be Friday. Failure to do so could result in criminal charges and fines up to $1,000 per day, the letter states.

Young is asking to have changes to the Nebraska law permanently thrown out and for attorney's fees.