Final answer:
When a responsible broker's license is expired or suspended, licensees cannot legally conduct real estate transactions without finding a new supervising broker. They must address the situation promptly to continue operating legally and comply with state regulations.
Step-by-step explanation:
When a responsible broker's license expires or is suspended, the licensees under that broker are typically unable to conduct real estate transactions as their ability to operate is contingent upon the broker's active and valid license. Generally, state laws require that a licensed real estate salesperson or associate broker work under a supervising broker to be able to legally engage in real estate business. This is because the responsible broker is not only a supervisor but also ensures compliance with real estate laws and ethical standards.In the event that a broker's license is no longer valid due to expiration or suspension, the associated licensees must find an alternative responsible broker to associate with or risk their transactions being considered invalid or illegal. It's essential that the licensees quickly address the issue to prevent disruption of services and maintain compliance with state regulations. Some regions might grant a grace period for licensees to find a new supervising broker, but specific rules can vary widely.Conclusion: It's crucial for licensees to have a clear understanding of their legal obligations and the steps required to remedy the situation when their responsible broker's license becomes inactive. Remaining vigilant about the status of the broker's license is also a proactive measure that licensees can take to protect their practices and the interests of their clients.