California Real Estate Practice Exam

The Real Estate Commissioner has the power to investigate, suspend, or revoke the license of a licensee if they have been found guilty of:

1. Submitting a check to the DMV that was dishonored or refused upon presentation

2. Using a false or fictitious name, or making false statements in any application for registration of a manufactured home as a vehicle

3. Both a and b

4. None of the above

The correct answer is: Submitting a check to the DMV that was dishonored or refused upon presentation

The correct answer in this context is that the Real Estate Commissioner has the authority to take action against a licensee if they have been found guilty of submitting a check to the DMV that was dishonored or refused upon presentation. This is pertinent because such an action demonstrates a lack of financial responsibility and can reflect poorly on the conduct of a real estate professional. Engaging in practices that involve dishonored payments can indicate unethical behavior, which undermines the trust essential in real estate transactions. The Real Estate Commissioner is responsible for maintaining professional standards within the industry, and any behavior that could damage the integrity of real estate practices is taken seriously. While using a false or fictitious name or making false statements is also a serious issue and can warrant action, the key focus here relates to the specific situation presented by the first option. Thus, the emphasis is on the repercussions of financial irresponsibility and dishonest practices directly connected to the obligations of real estate professionals.