Florida Broker Practice Exam

What is the term for an agreement between two states allowing a licensee from one state to practice in another?

1. Dual Licensure

2. Reciprocity

3. Interstate Compact

4. Concurrence Agreement

The correct answer is: Reciprocity

The term that describes an agreement between two states allowing a licensee from one state to practice in another is known as reciprocity. This arrangement typically involves the recognition of a license issued by one state by another state, enabling professionals to operate across state lines without needing to undergo a complete re-licensure process. Reciprocity promotes cooperation between states and can facilitate workforce mobility. It is particularly significant in fields such as real estate, where professionals may wish to work in multiple states due to the nature of their clientele or market opportunities. Through reciprocity, states acknowledge that licensees have met certain professional standards, ensuring a level of competency and adherence to regulations. Other options like dual licensure refer to holding licenses in multiple states but do not specifically denote an agreement for practice across state lines. An interstate compact is a formal agreement between states that can cover various issues, not just licensing. A concurrence agreement, while related to cooperation, does not specifically apply to the context of licensing between states.