What is required of sales agents when a sponsoring broker's license is suspended?

When a sponsoring broker's license is suspended, sales agents are required to return their licenses to the Real Estate Commission. This is a necessary step because a suspended broker is not legally able to supervise or manage sales agents, which requires agents to cease their activities under that broker's sponsorship. The regulation protects the integrity of real estate transactions and ensures that agents operate under licensed supervision.

Returning the license is part of complying with the regulatory framework that governs real estate practices, which is essential to maintain ethical and legal standards within the industry. Other options, such as continuing activities unlicensed or transferring to another broker immediately, do not align with the legal requirements and responsibilities outlined by real estate regulations. Therefore, the correct response emphasizes the importance of adhering to regulatory protocols following a broker’s license suspension.