EstatePass
Practice Of Real EstateLicense_lawHARD

A Wisconsin real estate broker's license is suspended by REEB following a disciplinary hearing. The broker has three salespersons associated with her firm. What is the immediate legal effect of the broker's license suspension on the salespersons' ability to practice real estate in Wisconsin?

Correct Answer

B) The salespersons' licenses become inactive and they may not engage in licensed real estate activity until they associate with another licensed broker

Under Wisconsin Statutes Chapter 452, a salesperson's license is associated with and dependent upon a licensed broker. When the broker's license is suspended, the salespersons lose their legal authority to engage in licensed real estate activity because they no longer have an active, licensed broker under whom to practice. Their licenses become inactive, and they must associate with another licensed broker to resume practicing. They do not lose their licenses permanently but cannot practice while unaffiliated with an active broker.

Answer Options
A
The salespersons may continue practicing under a temporary license issued automatically by REEB for up to 30 days
B
The salespersons' licenses become inactive and they may not engage in licensed real estate activity until they associate with another licensed broker
C
The salespersons are unaffected and may continue practicing independently during the broker's suspension period
D
The salespersons' licenses are automatically revoked along with the broker's license as a matter of law

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate

Sign up free to unlock full analysis

Common Mistakes to Avoid on Practice Of Real Estate Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

broker_suspensionsalesperson_licenseinactive_licensechapter_452

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.

Was this explanation helpful?

More Practice Of Real Estate Questions

People Also Study

Related Articles

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing