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Practice Of Real EstateLicense LawMEDIUM

New Hampshire salesperson Rachel wants to place her license on inactive status while she travels abroad for six months. Under NHREC rules, which of the following correctly describes the effect of placing a license on inactive status in New Hampshire?

Correct Answer

D) Rachel may not engage in any real estate brokerage activities that require a license while her license is on inactive status.

Under NHREC rules, a licensee with an inactive license may not engage in any real estate brokerage activities that require a license, including showing properties, negotiating contracts, or earning commissions from transactions. Inactive status preserves the license without requiring full reapplication, but it suspends the licensee's authority to practice.

Answer Options
A
Rachel must surrender her license to the NHREC and reapply from scratch when she returns from abroad.
B
Rachel may continue to receive referral fees from active licensees while her license is on inactive status.
C
Rachel's license on inactive status will automatically reactivate after six months without any additional steps.
D
Rachel may not engage in any real estate brokerage activities that require a license while her license is on inactive status.

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Related Topics & Key Terms

Key Terms:

inactive_licenselicense_statusbrokerage_activitiesnhrecrsa_331_a

Related Concepts

Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.

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.

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