Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What does it mean when a real estate license holder has an inactive status?

1. The license is permanently revoked

2. The license holder does not have a sponsoring broker

3. The license is currently active

4. The license has expired

The correct answer is: The license holder does not have a sponsoring broker

When a real estate license holder has an inactive status, it typically means that the individual does not currently have a sponsoring broker. In Texas, all active real estate license holders are required to be associated with a sponsoring broker to engage in real estate transactions. If a license holder does not have a sponsoring broker, their license becomes inactive, which prevents them from participating in any real estate activities until they are sponsored again. This status allows for a period of time in which the license holder may be considering options for a new broker, or may be stepping back from active participation in real estate while maintaining their licensing status. It’s important to understand that inactive status does not indicate that the license is revoked or expired. Instead, it represents a temporary state that can be changed back to active once a new sponsorship arrangement is made.