Leasing License Practice Exam

What can lead to a temporary suspension of a real estate license?

1. Failure to pass an exam

2. Concerns regarding public safety or interest

3. Not completing continuing education

4. Late payment of fees

The correct answer is: Concerns regarding public safety or interest

A temporary suspension of a real estate license can indeed occur due to concerns regarding public safety or public interest. This is a serious situation, as the primary purpose of regulatory measures in real estate is to protect the interests of the public. If a licensee is found to be involved in actions or practices that threaten the safety or welfare of clients or the community, regulatory bodies have the authority to suspend the license to protect the public from potential harm. Such concerns might arise from unethical practices, fraud, or other behaviors that may endanger consumers. The other choices, while potentially problematic for a licensee, typically lead to different consequences. For instance, failure to pass an exam generally results in the individual not being licensed at all rather than a temporary suspension of an existing license. Not completing continuing education can lead to the revocation of a license, but it usually does not result in immediate suspension. Similarly, late payment of fees may incur fines or penalties but would not directly lead to a temporary suspension unless it is a serious or repeated offense. Together, these factors illustrate the unique and significant impact that public safety concerns have, warranting a temporary suspension to address potential risks.