North Dakota Real Estate Practice Exam

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What can lead to disciplinary action against a licensee?

Offering cash incentives
Making false promises
Failing to communicate with clients
Changing commissions frequently

The correct answer is: Making false promises

Making false promises can indeed lead to disciplinary action against a licensee because it undermines the integrity of the real estate profession. Licensees are expected to provide truthful information and maintain honesty in their dealings. When a licensee makes false promises, it can mislead clients and create unreasonable expectations that cannot be met. This not only damages the trust between the licensee and their clients but also violates ethical standards and legal regulations within real estate practice. In many jurisdictions, including North Dakota, the law mandates that all statements made by a real estate professional be accurate and not misleading. Violating this principle can result in serious consequences, including the suspension or revocation of a real estate license. Other options may also have implications for professional conduct, such as communication with clients or commission structures, but they may not have the same foundational impact on integrity and trust as making false promises does.