The Texas Real Estate Commission adopted changes earlier this year that affect agents and brokers who don’t renew their licenses by the expiration date. Effective October 1, active license holders whose licenses expired are being set to inactive status as of the expiration date, and any license relationships to sales agents and/or brokers are terminated.
Previously, some license holders depended on having their brokers certify that they were being supervised while their license was expired. This is no longer an option. If you don’t want an interruption in your ability to work, make sure to renew your license well before the expiration date.
Avoid Trouble
If you renew your license after the expiration date but within six months after your license expired, your license will be renewed on inactive status.
License holders on inactive status cannot conduct brokerage activities. Doing so would be considered unlicensed activity and can result in disciplinary actions from TREC, including a minimum fine of $1,000. In addition, the gap in your active time will be reflected in your license record.
How to Return to Active Status
License holders now go through fewer steps to renew an inactive license. You must complete all required continuing education and submit a request to activate your license.
What This Means for Brokers
If you go inactive, any sales agents you sponsor will be set to inactive status. If you are a designated broker for a business entity broker license, that business entity and any agents sponsored by it will also be set to inactive status. Brokers returning to active status will have to re-establish all of their terminated relationships to sales agents and as designated brokers for business entity brokers after activation.
What This Means for Sales Agents
Sales agents who want to return to active status will need to request sponsorship by a broker using TREC’s Online Licensing Services portal.
What Happens After Six Months?
After six months and up to two years past the expiration date, you may apply for reinstatement of your license. After two years past the expiration date, you will have to reapply and pass the licensing exam.