What happens to the licenses of salespeople affiliated with a broker whose license is suspended for two years?

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When a broker's license is suspended, the licenses of the salespeople affiliated with that broker are affected in such a manner that they must return their licenses to the Hawaii Real Estate Commission. This is an essential step to ensure that salespeople are operating under a valid and active broker's license, as they cannot work independently without one. In this scenario, since the broker's license is suspended for two years, the law requires that the salespeople’s licenses be returned to avoid any unlawful practice in real estate.

The rationale behind this is to maintain regulatory compliance and protect consumers by ensuring that all real estate transactions are conducted by licensed professionals operating under a lawful brokerage. Once the affiliate's license is returned, they can pursue other opportunities, and they also have the possibility of reapplying or transferring their license to a different, active brokerage in the future.

In context, other choices suggest different outcomes, such as no effect on the affiliates or immediate revocation without any process. However, those do not align with regulatory standards and practices for real estate licensing in Hawaii.

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