Final answer:
When a licensee fails to renew their real estate license, they may lose their active status and cannot legally engage in real estate activities until they renew their license. The specific consequences and requirements for renewal can vary by state.
Step-by-step explanation:
When a licensee fails to renew their real estate license for an extended period of time, it can have serious consequences on their ability to practice as a real estate agent. In most states, a licensee is required to renew their license within a certain timeframe to maintain active status. However, the specific laws and regulations surrounding license renewal may vary from state to state.
One consequence of failing to renew a real estate license for a prolonged period of time is that the licensee may lose their active status and be considered inactive or expired. This means they cannot legally engage in real estate activities until they renew their license. Additionally, they may be required to meet certain criteria or complete additional education and training before their license can be reinstated.
Regarding the question of what is NOT correct, it depends on the specific circumstances and the laws of the state. However, one possible incorrect statement could be: 'The licensee can continue practicing real estate without renewing their license.' This is not correct because, without a valid and active license, the licensee cannot legally engage in real estate activities.