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Practice Of Real EstateLicense_lawHARD

Broker Nadia's Michigan broker license is revoked by LARA-BPL. Nadia subsequently applies for a new salesperson license under a different name, hoping to re-enter the industry. LARA-BPL discovers that Nadia failed to disclose her prior revocation on the new application. Under Michigan law, which of the following best describes the consequences Nadia faces?

Correct Answer

B) Nadia's new application is denied, and she may face additional disciplinary action for making a false statement on a license application

Under MCL 339.2511 and Act 299 of 1980, an applicant for any Michigan real estate license must disclose prior license revocations or disciplinary actions. Failing to disclose a prior revocation on a new application constitutes making a false statement on a license application, which is itself a separate and independent ground for disciplinary action and denial. LARA-BPL will deny the new application and may impose additional penalties for the fraudulent application, compounding Nadia's disciplinary exposure.

Answer Options
A
Nadia's new application is denied, but she faces no additional penalty because she applied for a different license category
B
Nadia's new application is denied, and she may face additional disciplinary action for making a false statement on a license application
C
Nadia's new application may be approved at LARA-BPL's discretion if five years have passed since the revocation
D
Nadia's new application is automatically approved because salesperson and broker licenses are separate categories under Michigan law

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Related Topics & Key Terms

Key Terms:

license_revocationfalse_applicationdisciplinary_actionsreapplicationact_299

Related Concepts

Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.

Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

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