California Real Estate Broker ExaminationPractice of Real Estate and Mandated DisclosuresMedium
A licensee is found to have commingled client funds with their personal funds, a violation of California real estate law. Which of the following is the most likely initial disciplinary action the Real Estate Commissioner would take?
- AImmediate revocation of the license without a hearing.
- BIssuance of a desist and refrain order.
- CSuspension of the license, often with a period of probation and/or fine.
- DA verbal warning and requirement for additional continuing education.
Show answer & explanationAnswer & explanation
Correct answer: C. Suspension of the license, often with a period of probation and/or fine.
Commingling is a serious violation. While revocation is possible for severe cases, a common initial disciplinary action for commingling is license suspension, often accompanied by probation, a fine, or a requirement for additional education, rather than immediate, outright revocation without process.
Why the other options are wrong
- A. Immediate revocation without a hearing is typically reserved for very extreme or repeated offenses, or certain criminal convictions; due process is usually involved.
- B. A desist and refrain order is more common for unlicensed activity or specific violations that require immediate cessation, not typically for commingling by a licensee.
- D. A verbal warning is insufficient for a serious violation like commingling; formal disciplinary action is required.
CA DRE Disciplinary Actions
Formal actions taken by the California Department of Real Estate against licensees for violations of real estate law.
- Range from citation to license revocation.
- Suspension (often with probation/fine) is common for serious violations like commingling.
- Due process (hearing) is typically involved before severe penalties.
Memory trick: Violations Climb, DRE Discipline Does Start, Suspension's a Common Part!