Under state law, what generally happens to pending real estate transactions and listings if a sole proprietor broker's license is suspended or revoked?

SUSPENSION/REVOCATION OF A SOLE BROKER'S LICENSE: If a sole proprietor broker's license is suspended or revoked, the brokerage generally CANNOT continue conducting licensed activity. EFFECTS: LISTINGS belong to the BROKERAGE (not individual agents) — without an active broker, the brokerage cannot lawfully service them; PENDING TRANSACTIONS are jeopardized — licensed activities (negotiating, handling funds) can't continue without an active broker; AFFILIATED SALESPEOPLE cannot practice under a broker whose license is no longer active — they must transfer to another broker to continue working; TRUST FUNDS must be properly handled/protected (often the commission steps in or requires proper disbursement); CLIENT PROTECTION: State law provides procedures to protect clients and handle pending business (transferring listings/transactions, protecting funds); the broker cannot perform licensed acts during suspension/revocation; CONSEQUENCES: This shows why the broker's license is central — the entire brokerage's ability to operate depends on it; SOLE PROPRIETOR vs ENTITY: An entity brokerage with multiple brokers may continue under another qualifying broker, but a sole broker's loss of license halts the firm; understanding that the brokerage's operations, listings, and pending deals depend on an active broker's license — and that loss of it halts licensed activity and requires client-protective measures — is important broker-level state law tested on the exam.