Illinois Leasing Agent Practice Exam

If a sponsoring broker's license is suspended, what happens to the licenses they sponsor?

1. They remain active until the broker is reinstated

2. All sponsored licensees immediately go into inactive status

3. Only newly licensed agents become inactive

4. They are automatically transferred to another broker

The correct answer is: All sponsored licensees immediately go into inactive status

When a sponsoring broker's license is suspended, all licenses they sponsor automatically go into inactive status. This is a crucial aspect of real estate licensing in Illinois as it ensures that no agents can operate under a broker who has lost their licensing privileges due to suspension. The relationship between a sponsoring broker and their agents is integral; the broker is responsible for overseeing the activities of all the agents they sponsor. When a broker cannot perform their duties, it becomes necessary to suspend the sponsored agents' licenses as well to maintain compliance with state regulations and protect the integrity of the real estate profession.