What happens if a principal broker does not return an agent's license when requested?

When a principal broker fails to return an agent's license upon request, this action is considered improper conduct. In the real estate profession, there are strict regulations governing the relationships between brokers and agents. An agent's license is their means to operate within the industry, and the principal broker has a responsibility to manage that license appropriately.

If a broker does not comply with the request to return an agent's license, this could indicate that they are withholding the license inappropriately, which can lead to disciplinary actions by the regulatory authority. The notion of improper conduct pertains to the ethical and professional standards expected in real estate practices, and failure to adhere to these standards can undermine trust and fairness in the business.

The other choices, such as receiving a reward for their service, automatically incurring a fine, or risking their own license, do not accurately capture the seriousness of the situation or the specific consequences for the principal broker in these circumstances. Each choice either misrepresents the situation or fails to address the principle of accountability within the broker-agent relationship.