Final answer:
Mickey must cease all licensed activity because his broker's license lapsed. He should refer his client to another brokerage firm. The transaction itself does not terminate due to Mickey's licensing issue.
Step-by-step explanation:
When a principal broker's license lapses, causing the forfeiture of a real estate agent's, or in this case, Mickey's license, the agent must cease all licensed activity. According to real estate law and regulations that govern real estate transactions, an unlicensed activity is not permissible. Therefore, Mickey cannot legally continue working on the transaction.
Given this situation, the most likely outcome is that Mickey must cease all licensed activity, which implies he cannot personally continue with the transaction through closing. Mickey would be required to refer his client to another licensed brokerage firm to handle their transaction. This referral process is necessary to ensure that the transaction remains compliant with all legal and regulatory requirements.
While Mickey's cessation of activity does not automatically terminate the contract between Mickey's seller and the buyer, his inability to work on the transaction could prompt the need for a new agent or broker to take over. Option (b), switching brokerage affiliations, is not an immediate solution, as Mickey must be appropriately licensed under a new broker before he can resume work on any real estate transactions.