Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresHard

A Florida real estate sales associate is found to have engaged in a fraudulent scheme that directly led to financial harm for several clients. This is a severe violation of license law. What is the most likely disciplinary action FREC will impose?

  1. ALicense suspension for a maximum of one year.
  2. BA letter of reprimand and a small administrative fine.
  3. CPermanent revocation of the real estate license.
  4. DMandatory attendance at an ethics course and probation.
Show answer & explanation

Correct answer: C. Permanent revocation of the real estate license.

Engaging in fraudulent schemes causing financial harm is considered a grave offense in real estate. Such actions typically result in the permanent revocation of the real estate license, as they demonstrate a serious breach of trust and a danger to the public.

Why the other options are wrong

  • A. While suspension is severe, permanent revocation is more common for direct fraudulent acts causing significant public harm.
  • B. This is a penalty for minor infractions, not for fraud leading to financial harm.
  • D. This is a corrective action for less severe ethical breaches, not for criminal fraud.

License Revocation (Fraud)

The permanent removal of a real estate license, typically imposed for severe violations such as fraud, misrepresentation, or criminal acts that harm the public.

  • Most severe disciplinary action by FREC.
  • Usually for offenses involving moral turpitude, fraud, or gross negligence.
  • Licensee cannot practice real estate in Florida again (or often anywhere else).

Memory trick: Fraudulent harm? 'Revocation' is the 'final' and 'permanent' answer!

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