What happens to the licenses of persons employed under a broker with a suspended license?

Study for the Gold Coast Real estate Sales Associate Pre-License Test with multiple choice questions! Get hints and explanations for each question. Prepare for your exam with confidence!

When a broker's license is suspended, it creates a direct impact on the status of the licenses of individuals employed under that broker. In this case, the licenses of those employed by the broker become automatically inactive. This is based on the regulatory structure governing real estate practices, which stipulates that associate licensees are dependent on the active status of their supervising broker's license.

If a broker's license is suspended, it signifies that the broker is unable to legally conduct business, which inherently affects the legal and operational status of those working under them. Thus, associate licensees can no longer engage in real estate activities until the broker's situation is resolved, underscoring the importance of the broker’s licensing status to the licenses of all associated individuals.

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