When a broker closes their real estate office and ceases operations in Rhode Island, what happens to the licenses of the salespersons affiliated with that broker?
Correct Answer
B) The salespersons must transfer their licenses to a new broker or place their licenses on inactive status
Under Rhode Island law, a salesperson's license is tied to their sponsoring broker. If a broker closes their office or ceases operations, the affiliated salespersons' licenses become inactive. Salespersons must either transfer their license to a new sponsoring broker or formally place their license on inactive status with the Rhode Island Department of Business Regulation. They may not practice real estate until a new sponsoring broker relationship is established.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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