Real Estate · License Law Violations and Discipline

Under state law, what must a broker generally do when a salesperson affiliates with or leaves the brokerage?

Correct answer

Notify the state commission and follow the proper procedures to add or release the licensee — the broker holds/sponsors the salesperson's license while affiliated, and proper notification/transfer procedures must be followed when the affiliation begins or ends

  1. A Hide it from the state
  2. B Notify the state commission and follow the proper procedures to add or release the licensee — the broker holds/sponsors the salesperson's license while affiliated, and proper notification/transfer procedures must be followed when the affiliation begins or ends
  3. C Nothing
  4. D Keep the license forever

Why this is the answer

Affiliation changes: When a salesperson AFFILIATES WITH or LEAVES a brokerage, the broker must follow state procedures.

When a salesperson joins: The broker sponsors/holds the salesperson's license; proper notification to the commission and any required paperwork must be completed to activate the affiliation.

When a salesperson leaves: The broker must release the license / notify the commission per state procedure; the salesperson cannot practice until affiliated with a new broker.

License custody: While affiliated, the broker typically holds the salesperson's license (physically or in the state system); upon departure, it is returned/released.

Notification: States require notification of affiliation changes (often within a specified time) so the commission's records are accurate.

Supervision: The broker supervises the salesperson only while affiliated.

Pending transactions: Agreements address commissions on pending deals when an agent leaves.

Records: Transaction records remain with the brokerage.

State-specific: Exact procedures, forms, and timeframes vary; the requirement to properly notify the commission and follow procedures when licensees join or leave (with the broker sponsoring the license while affiliated) is important broker office-management/state-law content tested on the exam.

Source: Real Estate Broker State — License Law, Affiliation Changes

Practice more questions

This question is from our Real Estate License Practice Tests practice test. Take the full practice test to test your knowledge across all License Law Violations and Discipline and other topics.

Take the Broker (State Law) practice test →

About this topic: License Law Violations and Discipline

License law violations and discipline cover the grounds for discipline, the complaint and hearing process, penalties (fines, suspension, revocation), and the recovery fund. This is one of 20 Broker (State Law) questions on license law violations and discipline, each with a full explanation on a single study page.

New to this exam? Our Real Estate exam guide explains the format, scoring, and how to prepare.

Related questions

State-specific guides

Need information for your state? Our state guides cover local requirements, fees, and what to expect on exam day.