What happens if a licensee engages in real estate activity with an inactive or expired license?

When a licensee engages in real estate activity with an inactive or expired license, the most significant consequence is that they will not receive payment from their Broker-in-Charge (BIC). This is because a BIC cannot compensate an individual who is not legally authorized to conduct real estate transactions. Engaging in real estate activities without a valid license violates state regulations, which are designed to ensure that all practitioners meet the required qualifications and are in good standing.

While there may be other repercussions, such as potential disciplinary actions that could include fines or a suspension, the immediate impact on compensation is crucial. Licensees cannot collect commissions or any form of payment for services rendered during the period when their license is inactive or expired. This serves to protect both the consumers and the integrity of the real estate profession.

It's important to recognize that engaging in real estate activities without a valid license can lead to serious legal implications and penalties, underscoring the need for active status in order to operate legally and ethically in the real estate industry.