Final answer:
Having the appropriate real estate license is important to limit risks in the real estate industry by ensuring agents have the necessary knowledge and skills to engage in transactions and contracts related to properties.
Step-by-step explanation:
Having the appropriate real estate license is important to limit risks in the real estate industry. A real estate license ensures that the agent has the necessary knowledge and skills to engage in transactions and contracts related to properties. It also establishes the agent's credibility and professionalism in the field. For example, a licensed real estate agent can provide accurate information about property ownership, negotiate contracts, and help clients make informed decisions.