California Real Estate Practice Exam

If the Real Estate Commissioner finds a licensee using a fictitious name or bouncing a check to the DMV, what actions can they take?

1. Both investigate and suspend the license

2. Investigate but not suspend the license

3. Revoke but not suspend the license

4. Take no action

The correct answer is: Both investigate and suspend the license

The Real Estate Commissioner has the authority to take both investigative and disciplinary actions against licensees who are found to be violating regulations, such as using a fictitious name or engaging in fraudulent activities like bouncing a check to the DMV. When the Commissioner identifies such violations, it is essential to thoroughly investigate to gather all pertinent information surrounding the issue. Following the investigation, if the evidence supports the violations, the Commissioner can then take disciplinary action, including the suspension of the license. Suspension serves as a vital tool to protect the public and maintain the integrity of the real estate profession. The ability to both investigate and suspend demonstrates the Commissioner's responsibility to uphold industry standards and take swift action against misconduct. This dual approach ensures that licensees adhere to relevant laws and uphold ethical practices in their business dealings.