Final answer:
The suspension or revocation of an employing broker's license leads to the broker being unable to practice, affects the real estate agents under them, and can result in fines, required education, or other measures, along with potential damage to the brokerage's reputation and operations.
Step-by-step explanation:
When an employing broker's license is suspended or revoked, several consequences follow. First and foremost, the broker would be legally prohibited from practicing as a real estate broker during the period of suspension or after revocation. This means they cannot engage in activities such as listing, selling, or managing real estate properties on behalf of their clients. Moreover, the suspension or revocation of the employing broker's license also affects the real estate agents who work under them. These agents would need to find another sponsoring broker to maintain their active license status. Additionally, the state real estate commission or licensing authority may also levy fines, require the completion of additional education courses, or impose other disciplinary measures against the broker. If a brokerage's employing broker has their license revoked, the brokerage may also suffer reputation damage and could face operational challenges, including restructuring or closing down the business.