Texas Crammer Practice Exam

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What happens to a broker's salespersons if the broker's license is revoked?

  1. They are automatically re-licensed

  2. They may seek new sponsorship

  3. They become inactive

  4. They are suspended

The correct answer is: They are suspended

When a broker's license is revoked, the salespersons associated with that broker are automatically classified as inactive. This means they can no longer engage in real estate transactions or represent clients until they are re-associated with a licensed broker. The revocation of the broker's license effectively severs the professional relationship between the broker and their salespersons, preventing them from legally practicing real estate under that license. In this context, becoming inactive serves to protect consumers by ensuring that only licensed individuals are conducting real estate activities, thereby maintaining the integrity of the profession. Once the salespersons find a new broker to sponsor them, they can then reactivate their licenses and resume their work in real estate.

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