New York Real Estate Salesperson ExaminationNew York State Specific Laws and RegulationsHard
According to New York State License Law, if a real estate salesperson leaves the employ of their sponsoring broker, what happens to their real estate license?
- AThe salesperson's license is immediately revoked by the Department of State.
- BThe salesperson can continue to conduct real estate activities independently for up to 30 days.
- CThe license remains active for 90 days, allowing time to find a new broker.
- DThe license automatically becomes inactive until a new broker is found.
Show answer & explanationAnswer & explanation
Correct answer: D. The license automatically becomes inactive until a new broker is found.
In New York, a real estate salesperson's license is always held by their sponsoring broker. When the salesperson leaves, the broker must return the license to the Department of State, and the salesperson's license becomes inactive until a new sponsoring broker is found and the license is reissued/transferred.
Why the other options are wrong
- A. Revocation is a disciplinary action and does not automatically occur when a salesperson leaves a broker's employ; the license just becomes inactive.
- B. A salesperson can never conduct real estate activities independently; they must always operate under the supervision of a licensed broker.
- C. There is no 90-day grace period for an inactive salesperson's license to remain active; it becomes inactive immediately upon separation from the broker.
Salesperson License Status
A real estate salesperson's license in New York is always held by and active under a sponsoring broker. If the sponsorship ends, the license becomes inactive until a new broker assumes sponsorship.
- Salespersons cannot work independently.
- License held by sponsoring broker.
- Becomes inactive upon separation from broker.
Memory trick: Broker's tie, license high, without them, it will lie.