Housing and Community Development (HCD) Practice Exam

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What can lead to disciplinary action for a licensed dealer?

Failure to maintain sales records
Failure to comply with housing regulations
Working without a license
No consequences exist for compliance issues

The correct answer is: Failure to comply with housing regulations

The option indicating failure to comply with housing regulations is correct because licensed dealers are expected to adhere to a set of legal and regulatory standards that govern their activities within the housing market. These regulations are designed to protect consumers and ensure fair practices in sales and leasing activities. Violating these regulations can lead to serious repercussions, including the possibility of disciplinary actions such as fines, suspension of the license, or revocation of the dealer's license altogether. This accountability is crucial for maintaining the integrity of the housing market and safeguarding public interest. While failure to maintain sales records, working without a license, and the absence of consequences for compliance issues may also present significant challenges, they do not fundamentally capture the scope of regulatory compliance as broadly as the second option. Compliance with housing regulations encompasses a wide range of requirements, including fair housing laws, applicable local ordinances, and consumer protection standards, which are critical in the real estate sector.