Licensing and Regulation of Licensees
Getting and holding a license
A salesperson must be at least 18, honest and truthful, complete the required prelicensing education, pass the exam, and be hired by a licensed broker. The license belongs to the individual but is registered with the employing broker; a licensee cannot practice while inactive or expired. A broker license requires additional education and demonstrated experience. Licenses run on a two-year cycle, and renewal requires continuing education - 24 hours per cycle, including the required agency and Commissioner's standards hours. Missing the renewal window triggers late fees and eventually expiration, and practicing after expiration is unlicensed activity.
Money and records
The broker - not the salesperson - owns the trust obligation. Earnest money, rents, and security deposits held for others belong in a trust account, and commingling with operating funds is prohibited. Transaction records must be retained for the required period (five years), and the broker must supervise and review the office's documents and advertising.
Advertising and delegation
Advertising must identify the brokerage. Unlicensed assistants may perform clerical and ministerial work but may not show property, quote terms, or negotiate. A licensee may not accept compensation for brokerage services from anyone other than the employing broker, and a broker may not split commissions with an unlicensed person.
Traps
- Paying a referral fee to an unlicensed friend or contractor.
- Believing an inactive licensee may still "help a client" informally.
- Confusing the salesperson's duties with the broker's supervisory and trust responsibilities.
- Assuming renewal is automatic or that CE can be completed after expiration.
Worked example: a licensee licensed in January 2024 renews in 2026 and must document 24 continuing education hours, including the required agency and Commissioner's standards hours, on or before the expiration date.