Leasing License Practice Exam

What criminal charge does a licensee face when practicing real estate without a license?

1. Class A misdemeanor

2. Class B misdemeanor

3. Class 4 felony

4. Both Class A misdemeanor and Class 4 felony for subsequent offenses

The correct answer is: Both Class A misdemeanor and Class 4 felony for subsequent offenses

When a licensee practices real estate without a valid license, they can face significant legal repercussions, including criminal charges. The correct answer highlights the potential consequences for both initial and subsequent offenses. Practicing real estate without a license is treated as a serious offense, and penalties can escalate for repeat offenders. In many jurisdictions, the first offense might be classified as a Class A misdemeanor, which carries potential jail time and fines. However, if a person continues to practice real estate without a license after previously being charged, subsequent offenses are often categorized as more severe offenses, such as a Class 4 felony. This escalation in charges reflects the legal system's approach to deter individuals from repeatedly violating licensing laws. The inclusion of both a Class A misdemeanor and a Class 4 felony for ongoing offenses signifies the system's recognition of the need to maintain strict compliance within the real estate market, as unlicensed practice undermines consumer protection and the integrity of the profession. Therefore, the correct answer accurately reflects the gravity of the offense and the graduated nature of penalties that can result from unlicensed practice.