Housing and Community Development (HCD) Practice Exam

Which of the following actions qualifies as grounds for license revocation?

1. A minor error in paperwork

2. Fraud and deceit committed by the licensee

3. Delayed submission of license renewal

4. Working without a license temporarily

The correct answer is: Fraud and deceit committed by the licensee

The action that qualifies as grounds for license revocation is fraud and deceit committed by the licensee. Engaging in fraudulent activities undermines the integrity of the profession and violates ethical standards. Such actions can lead to severe consequences, including revocation, as they demonstrate a willful breach of trust and responsibility that professionals are expected to uphold. In contrast, minor errors in paperwork typically do not warrant such a severe action as revocation. They are often seen as administrative oversights rather than intentional wrongdoing. Similarly, delayed submission of a license renewal may result in penalties, but it is generally handled in a manner that allows for correction without resorting to revocation. Working without a license, while it raises concerns, may be treated differently depending on the circumstances, as it could be viewed as a temporary lapse rather than evidence of deceit or intent to defraud.