Question

The principal broker of Welcome Home Real Estate failed to renew the business name registration. What happens now?

a) All firm and licensee licenses will be placed on involuntary inactive status until the business name is registered.
b) Nothing. Business name registration isn't required.
c) The firm has a 90-day grace period to renew the name.
d) The main location may continue to function normally, but branch office licenses will be inactivated.

Answer 1

When the principal broker of Welcome Home Real Estate does not renew the business name registration, it results in all firm and licensee licenses becoming involuntarily inactive until registration is completed.

Step-by-step explanation:

If the principal broker of Welcome Home Real Estate failed to renew the business name registration, the consequence is that all firm and licensee licenses will be placed on involuntary inactive status until the business name is registered.

This means that the real estate firm and its affiliated licensees cannot legally conduct real estate transactions until the name is properly registered with the state's real estate regulatory body.

In many jurisdictions, business name registration is a legal requirement for operating a real estate firm, and failure to maintain updated registration can lead to a halt in all business activities.

It's important for the principal broker to address this oversight as soon as possible to avoid any disruptions in service and compliance issues. Once the registration is renewed, the firm can return to normal operations.