Are you a Qualifying Broker (QB)? Did you know that QBs are responsible for renewing the firm license? Are you a Broker-in-Charge (BIC)? Are you aware that a BIC’s failure to renew their broker license or complete the appropriate continuing education (CE) can adversely affect their affiliated brokers?
Every year during license renewal, a brokerage is adversely impacted due to the QB or BIC failing to renew their individual broker license, firm license, or complete the appropriate CE, respectively.
Let’s discuss some of the consequences of a QB or BIC failing to renew their broker and/or firm licenses and complete the appropriate CE, under Rules 58A .0503 and .1702.
Qualifying Brokers
Question: What if the QB fails to renew their broker license?
Answer: If a QB fails to renew their broker license during May 15-June 30, the firm’s license will go on inactive status even if the firm’s license has properly been renewed. The firm’s license will go on inactive status because the QB’s broker license is expired and the firm must have an active QB to conduct brokerage activity in North Carolina.
Question: What if the QB fails to take the appropriate CE?
Answer: If a QB fails to take the appropriate CE according to their license status, the firm’s license will go inactive. The firm’s license will be inactive because the QB’s broker license is inactive and the firm must have an active QB to conduct brokerage activity in North Carolina.
Question: What if the QB renews their license but does not renew the license of the firm?
Answer: If the QB renews their license, but not the firm’s license, the firm’s license expires effective midnight of June 30. If the firm’s license is expired, the affiliated brokers must cease all brokerage activity. Also, all of the agency agreements are immediately at risk, since the brokerage can no longer legally fulfill its contractual obligations.
Question: What if the QB quickly renews their own license and that of the firm – does everything go back to normal?
Answer: Once the firm license is reinstated, as well as the QB’s, the QB must re-designate a BIC for each office of the firm; then, the BIC(s) must re-affiliate all the brokers with their brokerage office using Form 2.08, License Activation and Affiliation.
Brokers-in-Charge
Question: What if the BIC fails to renew their broker license?
Answer: If a BIC fails to renew their broker license during May 15-June 30, the BICs license will expire. Due to the BIC’s license expiration, the affiliated brokers will not be able to conduct brokerage activity legally. Affiliated full brokers will remain on active status at their home address but may not list property, advertise, or collect trust monies, and provisional brokers will be marked inactive.
Question: What if the BIC fails to take the appropriate CE?
Answer: If a BIC fails to take the appropriate CE according to their license status, the BIC’s license will go inactive. The BIC’s license will be inactive; therefore, the affiliated brokers will not be allowed to conduct brokerage activity. Although affiliated full brokers will remain on active status at their home address, provisional brokers will be marked inactive. In order for the BIC to regain BIC Eligible status, they must complete all of their CE requirements, including the current year’s CE and curing the CE deficiency and then take the 12-hour BIC course if it was not completed within the previous 12 months. Additionally, BICs must also submit Form 2.25 to Request BIC Eligible Status and/or Broker-in-Charge Designation after the completion of the 12-hour BIC course, if they had to take it.
NOTE: BICs must also consider that if they lose their BIC status, they might not qualify for BIC Eligible status in the future. They may not qualify because they do not have 2 years of full-time brokerage experience within the previous 5 years and/or they may have a pending complaint.
Lastly, once a BIC has completed the required CE, regained BIC Eligible Status and designated themselves as BIC of the brokerage, they must re-affiliate all brokers again with the brokerage using Form 2.08, License Activation and Affiliation.
Bottom Line
The consequences of a QB, BIC, or firm failing to renew have significant repercussions and require a lot of paperwork and potentially, education, to get back on track. All of this can be avoided if the QB renews their individual broker license and the firm’s license, and the BIC renews their broker license between May 15-June 30 of each year, and completes their required CE by June 10.