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Practice Of Real EstateLicense_lawMEDIUM

David is a Washington real estate Broker who decides to take a break from practicing real estate for personal reasons. He contacts the DOL to place his license on inactive status. While his license is on inactive status, which of the following activities may David legally perform?

Correct Answer

D) David may not perform any real estate brokerage activities that require a license, regardless of whether compensation is received.

Under RCW 18.85, a licensee with an inactive license may not engage in any real estate brokerage activities that require a license, whether or not compensation is involved. Inactive status means the licensee is not authorized to practice. The absence of compensation does not create an exemption from the licensing requirement for activities that otherwise require a license.

Answer Options
A
David may assist a friend in purchasing a home as long as he does not receive any compensation for the transaction.
B
David may refer clients to other brokers and collect referral fees, since referrals do not constitute active practice.
C
David may show properties to prospective buyers if he discloses that his license is currently inactive.
D
David may not perform any real estate brokerage activities that require a license, regardless of whether compensation is received.

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Related Topics & Key Terms

Key Terms:

inactive_licenselicense_statusbrokerage_activitiesrcw_18_85

Related Concepts

In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.

Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

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