If a broker's license is suspended, what action does the Board take?

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Prepare for the Montana Real Estate Exam. Use flashcards and multiple choice questions, each question comes with hints and explanations. Get ready to succeed on your exam!

When a broker’s license is suspended, the appropriate action taken by the Board involves sending a stop order and a cease and desist directive. This action is significant because a suspension indicates that the broker has engaged in behavior that violates licensing laws or regulations. The stop order acts to halt any further brokerage activity, effectively protecting the public from potential harm resulting from the broker's actions while the matter is investigated or addressed.

A cease and desist order further enforces this directive by legally compelling the broker to stop any illegal or unauthorized practices within the real estate profession. This mechanism ensures that the integrity of the real estate process is maintained and that consumers are safeguarded from misconduct by brokers whose behavior warrants a suspension.

Other options, such as issuing a warning or placing the broker on probation, do not accurately reflect the immediate action taken in the case of a suspension. Warnings may be a preliminary action but do not apply once a suspension has been enacted. Automatically revoking the license is a more severe measure that occurs under different circumstances and does not apply in the initial instance of a suspension. Therefore, the action of sending a stop order and a cease and desist is the correct procedure in response to a suspension of a broker's license.

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