Which action is mandatory for licensees when they experience a significant legal issue?

When a licensee encounters a significant legal issue, it is mandatory for them to report the issue to the Real Estate Commission within the specified timeframe. This requirement ensures that the Commission is aware of any potential misconduct or legal problems that could affect the licensee’s ability to practice or reflect on their suitability in the field. Reporting such issues helps maintain the integrity of the real estate profession and protect consumers.

Failure to comply with this reporting requirement can result in disciplinary actions against the licensee, including potential suspension or revocation of their license. This process helps the Commission monitor the conduct of its licensees and enforce standards of professionalism and ethics within the industry.

Other actions, while potentially important, do not have the same level of mandated urgency or regulatory oversight as reporting to the Commission. For instance, while notifying clients or filing an insurance claim can be relevant actions, they do not carry the direct legal implications related to maintaining licensure.