Real Estate · General

A salesperson's licence expires because they did not renew it on time. Can they still practise real estate while renewing?

Correct answer

No — practising real estate with an expired licence is illegal; they must complete any reinstatement requirements (including any late CE) and receive a renewed active licence before conducting any real estate activities

  1. A Yes — a short lapse is acceptable
  2. B No — practising real estate with an expired licence is illegal; they must complete any reinstatement requirements (including any late CE) and receive a renewed active licence before conducting any real estate activities
  3. C Yes, for 30 days after expiration
  4. D Only if their broker gives written permission

Why this is the answer

EXPIRED LICENCE: Practising real estate without a valid active licence is an illegal act in every state. Consequences: civil penalty; possible criminal charge depending on state; any transactions conducted with an expired licence may be voidable; the salesperson cannot claim commission. REINSTATEMENT PROCESS varies by state: within a certain period (often 2 years): can reinstate by completing missing CE and paying fees; after longer lapse: may need to re-examine or re-qualify. The licencee must notify their clients and broker of the expiration — continuing to represent clients without disclosure is a separate violation. PREVENTION: Set calendar reminders for licence expiration dates; complete CE early in the renewal period; don't rely on the state to send reminders (they may or may not).
Source: Real Estate State Exam, Expired Licence

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 General and other topics.

Take the Salesperson (State Law) practice test →

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.