Maine Real Estate License Practice Exam

For which conduct may a licensee lose their license?

1. Dishonesty

2. Dealing in bad faith

3. Incompetency

4. All of the above

The correct answer is: All of the above

A licensee may lose their license for various forms of unprofessional or unethical conduct, and dishonesty, bad faith dealings, and incompetency all fall under actions that could jeopardize one's real estate license. Dishonesty undermines the trust that is essential in real estate transactions; when clients or colleagues cannot trust a licensee, it damages the integrity of the real estate profession. Dealing in bad faith, which includes actions that are deceitful or that violate the fiduciary duty a licensee has to their clients, directly impacts professional relationships and the reputation of the practice. Furthermore, incompetency demonstrates a lack of understanding of the profession, resulting in potential harm to clients and the public. Given that all these behaviors compromise the standards expected of real estate professionals, they are valid reasons for disciplinary action, including the loss of a real estate license. This highlights the importance of maintaining ethical standards and proper conduct in the field.