Real Estate · State License Law and Commission

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 Only if their broker gives written permission
  2. B Yes, for 30 days after expiration
  3. C 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
  4. D Yes — a short lapse is acceptable

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

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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.

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