A real estate broker is subject to disciplinary action from the Department of Real Estate (DRE) if they:
Correct Answer
D) b. commingle trust funds. c. fail to supervise the salespeople they employ. d. Any of the above.
'any of the above' — because all three listed behaviors (extracting secret profits, commingling trust funds, and failing to supervise salespersons) are independently actionable grounds for DRE disciplinary action under California Business and Professions Code Sections 10176 and 10177. Secret profits violate the broker's fiduciary duty of disclosure; commingling trust funds violates California Code of Regulations Title 10 Section 2831; and failure to supervise violates the broker's statutory duty under Business and Professions Code Section 10177(h). Each offense alone is sufficient to trigger license suspension or revocation.
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