Active versus Inactive License Status

To lawfully engage in brokerage activity and receive any income for brokerage, an individual must have a CURRENT real estate broker license on ACTIVE status at the time they provide brokerage services.

What is a “current” license?

A broker who timely renews their license during May 15-June 30 has a current license for the subsequent year. All licenses expire on June 30 each year unless they are renewed by that date.

What is an “active” license?

Key Points: Active License Status

• A broker maintains an ACTIVE license status when they timely renew their license during the annual license renewal period AND complete the appropriate 8 hours of Continuing Education by June 10 of each year.
• Provisional brokers must also timely complete Postlicensing Education and be affiliated with a BIC to maintain active status.

Key Points: Inactive License Status

• If a broker fails to complete their required continuing education by June 10, their license status will be changed to INACTIVE at midnight on June 30.
• Once a broker’s license status is changed to inactive, they must immediately cease all brokerage activity until their license is back on active status.

Are BICs responsible for ensuring their affiliated brokers have an active, current license?

Yes. Commission Rule 58A .0110 requires designated BICs to assure that each affiliated broker has a current, active license to engage in brokerage activities. In order to appropriately supervise affiliated brokers and adhere to Commission rules, a BIC should use the Broker-in-Charge Login to examine the license record of all affiliated brokers and remind them of their obligation to renew their license and complete continuing education each year.

How does a broker reactivate an inactive license?

Pursuant to 58A .1703, the requirements for reactivating an inactive license depend upon the length of inactivity AND whether or not the broker has a continuing education deficiency. The reactivation requirements are as follows:

• Individual broker license on inactive status with NO continuing education deficiency
  • Submit the License Activation and Broker Affiliation form (REC 2.08)
• Individual broker license on Inactive status for LESS than 2 years with a continuing education deficiency:
  • Complete the current year’s CE requirement in full (i.e., take the General Update + 1 Commission-approved elective), AND
  • take either 1 or 2 approved electives to make up for the number of hours you did not complete during the preceding license year; AND THEN
  • submit the License Activation and Broker Affiliation form (REC 2.08)
• Individual broker license on Inactive status for MORE than 2 license years with a continuing education deficiency
  • Successfully complete two 30-hour Postlicensing courses within 6 months prior to submitting activation form, AND
  • complete the current year’s CE requirement in full (i.e., take the General Update + 1 Commission-approved elective); AND THEN
  • submit the License Activation and Broker Affiliation form (REC 2.08)

Can a broker practice brokerage after reactivating their license?

Although a broker may have completed the required steps to reactivate an inactive license, they may not engage in brokerage activity without first submitting the License Activation and Broker Affiliation form (REC 2.08) to notify the Commission of the broker’s desire for ACTIVE status and of the office with which they will be affiliated and doing business.

REMEMBER: A broker may use the Licensee Login to analyze their license record and determine if they have completed their continuing education. A BIC may also review the license record of affiliated brokers by logging into their Broker-in-Charge Login. Do you have additional questions about ACTIVE versus INACTIVE license status? Contact the Education and Licensing Division at LS@ncrec.gov or 919.875.3700, x772.