Real Estate Council of Alberta Fundamentals Practice Exam

What is a possible reason for the Executive Director to cancel a real estate professional's license?

1. The completion of required training

2. A failure to pay annual fees

3. Failure to notify changes regarding the license

4. Lack of clients in the previous year

The correct answer is: Failure to notify changes regarding the license

The reason for the cancellation of a real estate professional's license often hinges on regulatory compliance, which is essential for maintaining the integrity of the profession. When a real estate professional fails to notify the appropriate governing body about changes regarding their licensing status—such as changes in contact information, brokerage affiliation, or any legal issues that may affect their ability to practice—it raises concerns about transparency and accountability. This failure to communicate necessary changes can lead the Executive Director to cancel the license, as it suggests that the individual is not adhering to the standards required for continued licensure. In contrast, completing required training is a positive indicator of compliance and professional development, while a failure to pay annual fees is typically addressed through fines or sanctions rather than outright cancellation, unless it becomes a persistent issue. On the other hand, lacking clients does not directly relate to a breach of licensing conditions and is not a valid reason for license revocation. Thus, the emphasis on the necessity of notifying changes underscores the importance of professional responsibility within the real estate sector.