DRE & LicensingIntermediateCalifornia Exam

A California real estate licensee who engages in misrepresentation, fraud, or dishonest dealing may be subject to discipline under:

ABusiness and Professions Code Section 10177 only, as required for license renewal in California
BPenal Code Section 532 (criminal fraud) only, consistent with Business and Professions Code licensing rules
CBoth administrative discipline by the DRE and potential criminal prosecutionCorrect
DOnly civil liability to injured parties, under California Department of Real Estate requirements

Why Both administrative discipline by the DRE and potential criminal prosecution Is Correct

Answer C: Both administrative discipline by the DRE and potential criminal prosecution

Misconduct such as fraud or misrepresentation can trigger multiple consequences: the DRE may impose administrative discipline (suspension, revocation, probation); the licensee may face civil liability to harmed parties; and if the conduct is criminal, the district attorney may pursue criminal prosecution. These consequences are not mutually exclusive.

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