Leasing License Practice Exam

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Prepare for the Leasing License Test using our comprehensive flashcards and multiple-choice questions. Each question includes hints and explanations to enhance your learning experience. Excel in your examination!

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What can be a consequence of misrepresentation by a licensee?

Loss of a commission
Fines imposed by clients
Recovery from the Real Estate Recovery Fund
Suspension of business operations

The correct answer is: Recovery from the Real Estate Recovery Fund

Misrepresentation by a licensee can indeed lead to recovery from the Real Estate Recovery Fund. This fund is designed to protect consumers by providing compensation for damages suffered as a result of a licensee's wrongful actions, including misrepresentation. When a licensee fails to disclose important information or provides false information, clients who incur losses as a result can file a claim against this fund to recover their damages. The other options relate to potential consequences as well; for instance, loss of a commission could occur if an agent is found to be engaging in unethical behavior. Fines imposed by clients could also happen but typically would be outside the regulatory framework. Suspension of business operations is a severe consequence and may arise from serious violations, but recovery from the Real Estate Recovery Fund specifically addresses consumer protections against harm caused by licensee misrepresentation.