Florida Broker Practice Exam

Which type of license status allows a holder to engage in real estate business?

1. Voluntary inactive

2. Involuntary inactive

3. Active

4. Expired

The correct answer is: Active

The type of license status that allows a holder to engage in real estate business is the active status. When a real estate license is active, it means that the licensee has completed all the necessary requirements, such as continuing education and license renewals, and has paid the required fees. This status permits the individual to legally perform real estate activities, including representing clients in transactions, listing properties, and earning commissions. In contrast, voluntary inactive status indicates that a licensee has chosen not to engage in real estate business at the present time but can reactivate the license later. Involuntary inactive status is often the result of failing to meet renewal requirements or complete continuing education, which means the licensee is not authorized to conduct real estate business until the issues are resolved. An expired license is one that has not been renewed and is no longer valid for any real estate transactions. Therefore, to actively participate in the real estate market, a license must be in active status.