Which of the following is a consequence of engaging in rebating?

Engaging in rebating, which involves offering a portion of a commission or providing other types of monetary incentives to induce a client to engage in a transaction, can lead to serious legal repercussions in many jurisdictions, including the potential loss of a professional license. This is because rebating is often considered an unethical practice that violates industry regulations designed to ensure fair practices and protect consumers.

In many states, real estate laws explicitly prohibit rebating as it could lead to deceptive practices, ultimately harming the industry’s integrity and consumer trust. Regulatory agencies closely monitor such activities, and a violation can result in disciplinary actions, including suspension or revocation of a license. Thus, the correct answer highlights the significant risk involved in engaging in rebating.

The other options like enhanced customer loyalty, increased sales, and stronger commission rates might suggest potential benefits, but they do not hold up under scrutiny if one is considering the legal implications and overall integrity of real estate practices. Engaging in rebating typically does not foster a long-term positive relationship with clients or sustainable sales, as it often undermines the professionalism expected in the industry.