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Practice Of Real EstateLicense LawHARD

Salesperson Lena is affiliated with Broker Rick at Island Realty. Rick's broker license is revoked by HREC following a disciplinary proceeding. Lena has an active pipeline of five pending transactions. Under Hawaii license law, which of the following best describes Lena's situation immediately upon Rick's license revocation?

Correct Answer

D) Lena's salesperson license is automatically suspended and she may not perform any licensed real estate activity until she affiliates with a new licensed broker

Under HRS Chapter 467, a salesperson's license is issued under and tied to a specific licensed broker. When the supervising broker's license is revoked, the salesperson loses the legal basis for active practice because there is no longer a licensed broker under whom the salesperson's license can operate. The salesperson's license is effectively suspended — she cannot perform any licensed real estate activity — until she successfully transfers her license to and affiliates with a new licensed broker. This is a critical and often misunderstood consequence of broker license revocation in Hawaii.

Answer Options
A
Lena's salesperson license remains active and she may continue her pending transactions independently until she finds a new broker
B
Lena may continue her pending transactions only if she obtains written permission from HREC within 10 business days
C
Lena's salesperson license is automatically revoked along with her broker's license and she must reapply for a new license
D
Lena's salesperson license is automatically suspended and she may not perform any licensed real estate activity until she affiliates with a new licensed broker

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Related Topics & Key Terms

Key Terms:

broker_revocationsalesperson_suspensionlicense_affiliationhrs_467disciplinary_action

Related Concepts

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.

Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.

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