Real Estate · State License Law and Commission

What typically happens to a salesperson's license if their sponsoring/employing broker's license is revoked or the salesperson leaves the broker?

Correct answer

The salesperson generally cannot practice until they affiliate with a new broker — a salesperson's license must be held/sponsored by an active broker; without an affiliated broker, the salesperson's license becomes inactive and they cannot conduct brokerage activities

  1. A The salesperson generally cannot practice until they affiliate with a new broker — a salesperson's license must be held/sponsored by an active broker; without an affiliated broker, the salesperson's license becomes inactive and they cannot conduct brokerage activities
  2. B They automatically become a broker
  3. C Nothing changes
  4. D They keep working independently

Why this is the answer

Salesperson-broker affiliation: A real estate SALESPERSON's license must be SPONSORED/HELD by an actively licensed BROKER; salespeople cannot operate independently — they work under a broker's supervision and license. IF THE BROKER'S LICENSE IS REVOKED/SUSPENDED or the salesperson LEAVES: The salesperson generally CANNOT conduct brokerage activities until they affiliate with a new sponsoring broker; their license effectively becomes INACTIVE (they hold the license but can't practice); they must transfer their license to a new broker to resume work.

Transfer process: Notify the state, complete transfer paperwork, get the new broker's sponsorship.

Supervision: The broker is responsible for supervising affiliated salespeople and is accountable for their licensed activities.

Commission: Salespeople are paid by/through their sponsoring broker, not directly by clients; INDEPENDENT CONTRACTOR vs EMPLOYEE: Most are independent contractors but still must be supervised by and affiliated with a broker; the requirement that a salesperson work under an active sponsoring broker — and that they cannot practice without one — is fundamental state license law structure tested on the exam.

Source: Real Estate State — License Law, Broker Affiliation

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 State License Law and Commission and other topics.

Take the Salesperson (State Law) practice test →

About this topic: State License Law and Commission

State license law and commission questions cover who must be licensed, exemptions, license types and renewal, continuing education, the real estate commission's powers and the grounds for discipline. This is one of 34 Salesperson (State Law) questions on state license law and commission, 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.