For which act can a real estate licensee potentially face disciplinary action?

A real estate licensee can potentially face disciplinary action for converting a principal's funds or property for personal use because this behavior constitutes a serious violation of ethical standards and legal obligations in the real estate profession. Such an act represents a misuse of trust and fiduciary duty, as licensees are required to handle their clients' funds with the utmost integrity and care. This includes safeguarding clients' money and ensuring it is used only for the agreed purposes within the confines of the transaction.

The other options do not typically result in disciplinary action. Including the firm's licensed name in advertisements is a requirement that helps ensure transparency and can actually protect licensees from legal issues. Keeping transaction records for the mandated duration is also a legal requirement, and adhering to it is essential for compliance, not a cause for disciplinary action. Delivering all requested information to the Director is part of the obligations of a real estate licensee, promoting accountability and compliance with regulations. Thus, these actions are not considered reasons for disciplinary measures.