If a licensee is involved in fraudulent practices, what action may the commissioner take?

When a licensee is involved in fraudulent practices, the appropriate action the commissioner may take is to require the licensee to show cause for retaining their license. This means that the licensee must provide a valid explanation or justification for why their license should not be revoked or suspended due to the fraudulent activity.

The process of requiring a show cause is essential as it allows the licensee the opportunity to present their side of the story, potentially mitigating circumstances that may have contributed to the allegations against them. It is a formal step in the disciplinary process and signifies that the commission is taking the matter seriously and ensuring due process is followed.

In circumstances involving serious violations like fraud, merely issuing a warning letter or imposing a fine may not suffice, as the integrity of the real estate profession must be upheld. Revocation of the license may occur after this process if the commission finds compelling evidence of wrongdoing. Thus, requiring the licensee to show cause is a vital step that reflects a commitment to fairness while also protecting the public and the integrity of the profession.