Which of the following is true about an Inactive License?

An Inactive License refers to a status in which the license meets all regulatory requirements and remains valid but does not permit the licensee to perform any activities associated with real estate transactions. This means that while the license remains in good standing, the licensee is not authorized to operate as a leasing agent or engage in activities that require an active license, such as negotiating leases, earning commissions, or hosting open houses.

This status often serves as a temporary measure for licensees who may not currently be active in the industry but plan to return to it later. It allows them to maintain their qualification and avoid the potential costs and processes associated with reapplying for a new license.

In contrast, the other options imply capabilities or conditions that are not accurate given the status of an Inactive License. For instance, a licensee with an inactive license cannot earn commissions or conduct transactions, including hosting open houses. Additionally, an inactive license does not automatically revert to active status upon renewal; it requires specific action to reactivate it. Thus, it is key for real estate professionals to understand the implications and limitations of holding an inactive license.