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What happens to a sales agent's license when they leave their sponsoring broker?

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Question & Answer

Review the question and all answer choices

A

It remains active for 30 days

A is incorrect because Texas law does not provide a 30-day grace period for license activity after leaving a broker. The status changes immediately, not after a waiting period.

B

It becomes inactive immediately

Correct Answer
C

It is automatically transferred

C is incorrect because licenses are not automatically transferred between brokers. The agent must actively seek a new sponsor who must then register them with TREC to activate the license.

D

It is revoked

D is incorrect because revocation is a disciplinary action for serious violations, not the automatic result of changing brokers. Inactivation is the normal process, not revocation.

Why is this correct?

B is correct because Texas real estate regulations require that a sales agent's license becomes inactive immediately upon termination of the broker-sponsor relationship. The license remains inactive until the agent secures a new sponsoring broker who registers them with the Texas Real Estate Commission (TREC).

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