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What action could lead to the suspension or revocation of a real estate license?

  1. Not completing continuing education

  2. Making false statements in advertising

  3. Failing to file taxes

  4. Working without a contract

The correct answer is: Making false statements in advertising

Making false statements in advertising is a serious violation in the real estate industry and can lead to the suspension or revocation of a real estate license. This action undermines trust in the profession, as real estate agents are expected to convey accurate and truthful information to consumers. Misleading consumers through false claims can lead to disciplinary action from regulatory bodies, as it breaches ethical standards and legal statutes established to protect client interests. In this context, the focus is on maintaining transparency and honesty within real estate transactions. Violations of advertising regulations reflect poorly on the integrity of the real estate profession and can cause significant harm to clients, which is why such actions are met with strict penalties, including potential loss of licensure.