If a broker discharges a salesperson, what should happen to the license?

Prepare for the AREC Arkansas Broker Exam. Study with flashcards and multiple choice questions, each question offers hints and explanations. Get ready for success!

When a broker discharges a salesperson, the appropriate action regarding the salesperson's license is for it to be returned to the Commission by the broker. This process ensures that the license is properly accounted for and helps maintain the integrity of the licensing system. Discharging a salesperson means that they are no longer affiliated with the broker, and retaining the license in the broker's file or allowing the salesperson to keep it would not reflect this change in status.

Returning the license to the Commission formally acknowledges that the broker-salesperson relationship has ended. This action helps prevent any unauthorized practice of real estate by the discharged salesperson and allows the Commission to update its records accordingly. It also serves to protect consumers by ensuring that only licensed individuals are allowed to engage in real estate activities under a broker's supervision.

Therefore, returning the license to the Commission is a necessary step that upholds regulatory compliance within the real estate industry.

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