What happens if a license becomes inactive or expired regarding commissions earned?

Prepare for the North Carolina Post Licensing 302 Exam. Enhance your understanding with comprehensive study materials, flashcards, and practice questions. Boost your confidence and get ready to ace your exam!

When a real estate license becomes inactive or expires, the rules regarding commissions relate primarily to the status of the license at the time commissions were earned. If a broker earned a commission while their license was active, they are entitled to receive that commission even if their license is no longer active at the time of payment. This means that the timing of when the commission was earned is crucial, as it is generally accepted in real estate practice that the right to earned commissions is preserved despite a change in license status.

In contrast, having an inactive or expired license does not affect the validity of commissions that were legitimately earned during the period the license was active. This principle ensures that brokers and agents are compensated for their work, irrespective of the changes to their license status after the fact.

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