What must occur if a real estate licensee fails to complete continuing education requirements by the license renewal date?

When a real estate licensee does not fulfill their continuing education requirements by the renewal date, the proper consequence is that the license becomes inactive. This status means the licensee is not authorized to engage in activities requiring a real estate license until they complete the necessary continuing education and reactivate their license.

This system serves to ensure that licensees remain knowledgeable about current laws and practices in the real estate industry, promoting professionalism and safeguarding the interests of consumers. The inactive status acts as a protective measure, preventing individuals from operating without the most recent educational updates that are critical for effective practice in the real estate field.

In contrast, being fined, retaking the exam, or having the license automatically revoked are not standard repercussions for failing to complete continuing education. Instead, these could be viewed as more severe penalties, typically reserved for more egregious violations of real estate laws or practices.