Which of the following is not a license law violation?

Offering a rebate or gift to a prospective client is not a license law violation in California, provided that it adheres to the regulations outlined by the California Bureau of Real Estate. Generally, such incentives are permissible as long as they are disclosed appropriately and do not violate any agreements or laws regarding consumer protection or fair trade practices. This practice can be part of a business strategy to attract clients, as long as it complies with regulations governing real estate transactions.

In contrast, the other options—falsifying financial statements, failing to disclose known property defects, and misrepresentation of property value—are all serious violations of license law. Falsifying financial statements undermines the integrity of the real estate profession and can lead to legal penalties. Failing to disclose known property defects can cause significant harm to buyers, undermining their ability to make informed decisions and potentially leading to costly legal issues. Misrepresentation of property value can lead to fraudulent transactions, damaging trust in the real estate market. Thus, these actions are directly opposed to the ethical standards set forth for real estate professionals.