Many people wonder if it’s possible to keep a real estate license active without actively working as an agent. The answer is yes, but it comes with important rules and responsibilities. Holding a real estate license without practicing means maintaining your credentials while choosing not to engage in real estate transactions. This situation applies to those who want to keep their license for future use, explore other career paths, or take a break from the industry.
This blog explains the essentials of holding a real estate license without practicing. You’ll learn how it works, what it costs, and the benefits and risks involved.
What Does It Mean to Hold a License Without Practicing?
When you hold a real estate license without practicing, you maintain your legal status as a licensed agent but do not actively represent buyers or sellers. You do not conduct sales, list properties, or negotiate deals. Your license remains valid as long as you meet state requirements, such as continuing education and renewal fees.
Holding a license without practice is sometimes called “inactive status.” Some states offer this option officially, allowing agents to pause their active work while keeping their license intact. However, others require that inactive agents affiliate with a broker even if they are not selling.
Why Hold a Real Estate License Without Practicing?
There are several reasons someone might want to keep a real estate license without practicing:
- Career Flexibility: You may want to keep the door open for returning to real estate later.
- Networking: Remaining licensed allows you to stay connected with industry professionals.
- Side Income Potential: You might assist clients occasionally without full-time commitment.
- Resume Value: Holding a license signals knowledge and professionalism.
- Market Knowledge: It helps you keep updated on real estate trends.
Many agents take breaks for family, education, or personal reasons. Holding a license without practicing gives them a chance to pause without losing their hard-earned credential.
State Requirements for Holding a License Without Practicing
Rules vary by state. Some common requirements include:
- Continuing Education: Most states require licensees to complete courses even if inactive.
- Renewal Fees: License renewal costs still apply.
- Broker Affiliation: Some states require inactive licensees to stay affiliated with a broker.
- Inactivity Notification: You may need to notify your state licensing board or apply for inactive status.
Failing to meet these requirements could lead to license suspension or cancellation. Always check your state’s real estate commission rules to understand your obligations.
Costs and Maintenance
Maintaining a license without practicing involves some expenses. These may include:
- License renewal fees, often annually or biannually.
- Continuing education course fees.
- Broker fees, if your state requires affiliation.
Though you won’t be earning commissions, these costs keep your license valid. The fees are usually lower than those for active agents, but they add up over time.
Risks of Holding a License Without Practicing
Holding a license without working comes with risks you should consider:
- Cost Without Income: You pay fees but earn no commissions.
- Potential License Expiration: Forgetting renewals can cause your license to expire.
- Limited Market Experience: You may miss out on current market changes.
- Broker Affiliation Issues: Being affiliated without practice might cause conflicts.
Despite these challenges, many find the benefits outweigh the downsides if they plan to return to real estate later.
How to Hold Your License Without Practicing
Here are steps to follow if you want to keep your license but pause working:
- Check State Rules: Visit your real estate commission’s website to understand inactive status options.
- Submit Inactivity Request: If your state requires, file a form or application to place your license on inactive status.
- Complete Required Education: Finish any required continuing education before renewal deadlines.
- Pay Renewal Fees: Keep your license current by paying all required fees.
- Maintain Broker Relationship: If your state demands, stay affiliated with a broker or follow rules for non-affiliation.
Following these steps ensures your license stays in good standing.
When Should You Consider Letting Your License Expire?
If you no longer want to work in real estate or maintain the license, letting it expire is an option. Before doing so, weigh these factors:
- Future Plans: If you might return to real estate, keeping your license is often better.
- Costs: Weigh annual fees against your budget and expected income.
- Reinstatement Rules: Some states allow you to reinstate an expired license within a certain period with less hassle.
- Alternative Career Moves: Consider if other licenses or certifications better suit your goals.
Deciding to let a license expire can save money but means restarting the licensing process if you return.
Benefits of Staying Licensed Without Practicing
Even without active work, holding a license has advantages:
- Professional Credibility: It signals knowledge and commitment.
- Networking Access: You can attend industry events and join professional groups.
- Referrals: You might receive client referrals through your network.
- Learning Opportunities: Staying connected helps you stay current on laws and trends.
These benefits keep you in the loop and ready for opportunities.
Conclusion
Holding a real estate license without practicing is possible and common. It allows flexibility and keeps your options open for the future. However, it comes with responsibilities like continuing education and renewal fees. Understanding your state’s rules is essential to avoid losing your license.
If you want to keep your real estate license without actively working, stay on top of requirements. That way, you preserve your professional standing and prepare yourself to jump back into the market when the time is right.Ready to hold a real estate license in Illinois without practicing? Stay informed about your state’s rules and keep your license active easily. Contact a real estate professional today for guidance on maintaining your license correctly.
