A real estate agency discovers that one of their agents has been operating without completing required CPD for two years, during which time they conducted 50 property transactions. What are the potential consequences?

Option A: The agent must complete double CPD hours for the following year

Option A is incorrect because it treats this as a minor administrative issue requiring only additional CPD hours. The reality is far more serious - operating without valid licensing for two years while conducting 50 transactions constitutes a major regulatory breach that cannot be remedied simply by completing extra CPD. State regulators impose much more severe consequences for such systematic non-compliance, including potential license cancellation and making past transactions voidable.

Option C: The agency faces a warning but transactions remain valid

Option C is incorrect because it significantly understates the consequences and wrongly suggests transactions remain valid. When an agent operates without valid licensing credentials (including current CPD), they are effectively unlicensed, which makes their transactions potentially voidable. Additionally, the consequences extend far beyond a mere warning - both the agent and agency face serious disciplinary action including potential license suspension, cancellation, and substantial penalties from the state regulator.

Option D: Only future transactions are affected until CPD is completed

Option D is incorrect because it suggests only future transactions are affected, which misunderstands the fundamental nature of licensing requirements. When an agent operates without valid CPD, they are effectively unlicensed for the entire period of non-compliance. This means all transactions conducted during the two-year period are potentially voidable, not just future ones. The licensing breach is retrospective, affecting all activities performed while unlicensed.