Final answer:
Reciprocity is when another state honors your real estate license, allowing you to practice without going through the entire licensing process again.
Step-by-step explanation:
When another state honors your real estate license, it is called reciprocity. Reciprocity allows real estate professionals to practice in another state without having to go through the entire licensing process again. It is an agreement between states that recognizes the qualifications and licensing requirements of each state.
For example, let's say you have a real estate license in State A and want to practice in State B. If State B has a reciprocity agreement with State A, you can apply for a reciprocal license in State B and be allowed to work as a real estate professional there.
Reciprocity is beneficial for real estate professionals who want to expand their business to different states and for individuals who move to a new state but want to continue their real estate career without having to start from scratch.