If a salesperson fails to renew their license on time, what is the consequence?

When a salesperson fails to renew their license on time, the consequence is that their license becomes forfeited. In the context of real estate in Hawaii, this means that the individual loses the legal right to practice real estate until they take the necessary steps to regain their license. This usually involves going through a reinstatement process, which can include additional requirements such as completing continuing education or paying reinstatement fees.

The forfeiture of the license serves to protect the integrity of the real estate profession, ensuring that only those who have complied with renewal requirements and maintained their qualifications are permitted to engage in real estate transactions. Thus, the process acts as a safeguard for consumers and the market at large.

In contrast, the other choices describe scenarios that do not apply in this context. The idea that a renewal might be accepted but could lead to delays, or that the broker automatically submits the renewal, does not align with the immediate consequence of not renewing on time. Additionally, while a license can become inactive, the term “forfeited” represents a more serious consequence, indicating that the individual no longer holds any active license until reinstatement is achieved.