An agency's trust account is found to be short $15,000 during an audit, with no clear explanation for the discrepancy. Which of the following represents the most serious potential consequence for the licensed agent in charge?
Correct Answer
B) Suspension or cancellation of real estate license
Trust account shortfalls are among the most serious breaches in real estate practice as they involve client funds. Such breaches can result in license suspension or cancellation, as they demonstrate a failure to protect consumer money and maintain proper fiduciary standards.
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