What is the main consequence if a licensee does not renew their license?

The main consequence of not renewing a real estate license is that the licensee may not operate as a real estate agent. In Hawaii, as in many other states, a valid license is a legal requirement for any individual who wishes to engage in real estate transactions. When a license expires, the individual loses the authority to conduct real estate business, which includes activities like representing clients in sales or leases, marketing properties, and earning commissions. This regulatory requirement ensures that real estate professionals are up-to-date with laws, ethics, and market practices, thereby protecting consumers and maintaining industry standards.

If a licensee does not renew their license, they cannot legally perform the duties associated with being a real estate agent, which can have immediate professional and financial implications.