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Real estate glossaryGeorgia-specific rule

Inactive license

An inactive Georgia real estate license is current but not authorized for brokerage activity.

Exam area: State Laws and Rules

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What does “inactive license” mean in real estate?

An inactive Georgia real estate license is current but not authorized for brokerage activity. An inactive salesperson or associate broker may not perform licensed acts or receive compensation for them.

How is “inactive license” different from the closest wrong answer?

Inactive is a license status. Lapsed or expired means the license was not maintained as required, while revoked means the Commission withdrew the license through discipline.

What is the Georgia-specific rule?

Activation requires the filings and affiliation applicable to the license class. Holding an inactive license does not create a grace period for practicing.

Worked exam example

Scenario

A salesperson leaves a brokerage and places the license on inactive status. The person may study or seek a new broker but may not negotiate listings in the meantime.

What is the most common exam trap?

Trap correction

Being licensed in name is not enough. The question asks whether the license is active at the time of the act.

Original exam check

Apply the definition

A salesperson leaves a brokerage and places the license on inactive status. A friend asks the salesperson to list the friend's house and offers to pay a fee directly. What is the correct answer?

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