Which of the following is a potential penalty for breaking fiduciary duties?

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In the context of breaking fiduciary duties in real estate, the potential penalties can vary depending on the severity of the violation and the jurisdiction. Among the options provided, a felony is typically considered a serious criminal offense that can result from egregious breaches of fiduciary duties, especially when those breaches involve fraudulent actions or significant misconduct that harms others, such as clients or the general public.

When agents or brokers fail to uphold their fiduciary responsibilities—such as loyalty, honesty, full disclosure, and accounting—they may expose themselves to legal consequences, including criminal charges. If those fiduciary breaches are severe enough to be deemed criminal in nature, they can lead to felony charges. Such charges can carry severe penalties, including imprisonment and significant fines.

Other penalties, such as suspension or license revocation, are also possible outcomes for violating fiduciary duties. These are disciplinary actions typically enforced by regulatory bodies and do not carry the same criminal weight as a felony. A fine might also occur as a civil penalty; however, it is less severe than a felony and does not imply criminal intent or behavior. Therefore, in cases of serious misconduct that warrants criminal proceedings, felony charges are appropriate and reflect the gravity of the situation.

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