Michigan License Law Practice Test

What action may the Department take if a licensed broker fails to notify about a change of business address?

1. Issue a warning

2. Allow the broker to continue operations

3. Revocation of the broker's license

4. Grant a temporary extension

The correct answer is: Revocation of the broker's license

If a licensed broker fails to notify the Department about a change of business address, the most severe and appropriate action the Department may take is revocation of the broker's license. This action underscores the importance of maintaining accurate and up-to-date records in the real estate profession, as it ensures transparency and accountability in business practices. When a broker changes their business address, they are legally obligated to inform the Department. This requirement protects consumers and maintains the integrity of the licensing system, as it allows for proper communication and regulatory oversight. If a broker does not comply with this obligation, the Department might find it necessary to revoke their license to uphold the standards of the profession. This response is in line with regulatory frameworks that prioritize compliance and communication, thereby illustrating the gravity of maintaining accurate licensing information. Other options may suggest milder consequences which do not adequately reflect the importance of adhering to notification requirements in professional real estate practice.