What is the consequence for a salesperson working for a new broker without obtaining a new license?

If a salesperson begins working for a new broker without obtaining a new license, they do not officially work for that broker. Real estate licensing is jurisdiction-specific, and transitioning to a new brokerage typically requires the salesperson to be formally licensed under that broker's authority. Without this proper licensing, the relationship between the salesperson and the new broker remains unofficial, which means that the salesperson lacks the legal standing needed to conduct real estate transactions or represent clients under the new broker’s name.

The requirement for a new license ensures that all parties involved in a real estate transaction are operating under the regulations established by the state. If a salesperson were to conduct business without their license being updated, they wouldn't have the legal protections and rights that come with being actively licensed under the new broker. This situation can cause confusion for clients and potential legal issues for both the broker and the salesperson.