Which action can cause a licensee to lose their real estate license?

Paying a referral fee to unlicensed persons is a violation of real estate laws and regulations that govern the conduct of licensed real estate professionals. In most jurisdictions, including Arkansas, only licensed individuals can receive compensation for services related to real estate transactions. This is in place to protect consumers and ensure that those who provide real estate services are qualified, have the necessary training, and adhere to established ethical standards. Engaging in the practice of compensating unlicensed individuals can lead to severe penalties, including the suspension or revocation of a real estate license.

The other options, such as failure to work full time or failure to procure the required number of sales, may reflect poorly on a licensee's practice or affect their business but do not constitute outright violations of real estate licensing laws. Similarly, not making any money in a given year is about business profitability, which is not directly tied to the status of a real estate license. In contrast, paying referral fees to unlicensed persons constitutes a direct breach of licensing requirements, making it the correct choice regarding potential license loss.