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When a sole proprietor has his/her license suspended for 2 years, what effect does this have on the associate brokers and salespeople affiliated with the proprietor?

A. Affiliates' licenses will be revoked, subject to reinstatement after one year
B. Affiliates' licenses will also be suspended for 2 year period
C. The suspension of the sole proprietor's license has no effect on the affiliates.
D. Affiliates' licenses must be returned to the NH Real Estate Commission

User Losee
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1 Answer

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Final answer:

The suspension of a sole proprietor's license can affect their affiliate's ability to conduct business, but it does not automatically suspend or revoke their licenses. Those affiliates must associate with another licensed broker or follow procedures as per local regulatory laws.

Step-by-step explanation:

When the license of a sole proprietor is suspended, it can have significant repercussions for the associate brokers and salespeople affiliated with that proprietor. In many jurisdictions, real estate brokers and their affiliates are regulated by a real estate commission or similar regulatory body. If a sole proprietor's license is suspended, it does not automatically mean that the licenses of the affiliated associate brokers or salespeople will be suspended or revoked.

However, without a licensed broker to operate under, affiliates may be unable to continue their business as usual. Such affiliates likely need to associate with another licensed broker to continue practicing legally. Specific procedures, such as returning their licenses to the NH Real Estate Commission or another regulatory body, transferring their affiliation to another broker, or taking different measures, could be required depending on local real estate laws and regulations.

User LuckSound
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