Illinois Leasing Agent Practice Exam

What is an inactive license in real estate?

1. A license that has expired

2. A license not being used under a sponsoring broker

3. A license that is under review

4. A temporary license for new agents

The correct answer is: A license not being used under a sponsoring broker

An inactive license in real estate refers to a license that is not currently being used under a sponsoring broker. This means that the licensed individual is unable to engage in any real estate activities such as buying, selling, leasing, or managing properties. The licensee has the option to put their license in inactive status, often due to personal choice or if they are not actively participating in the real estate market. By being inactive, they are not subject to the activities and responsibilities associated with actively practicing real estate. In contrast, a license that has expired would no longer be valid for any real estate transactions and requires renewal to be active. A license that is under review might indicate that there are issues being addressed, which is distinct from simply being inactive. A temporary license is granted to new agents usually for a limited time and allows them to practice under certain conditions, rather than indicating that they are inactive. Thus, the definition of an inactive license specifically aligns with the situation where the license is not being used under a sponsoring broker.