When must a salesman's or associate broker's license be returned for cancellation after withdrawal from an office?

The requirement to return a salesman's or associate broker's license for cancellation immediately upon withdrawal from an office is based on the principle that an active license must be properly associated with an active employment situation or brokerage. When an agent withdraws from a brokerage, it is crucial to immediately notify the relevant licensing authority so that the agent is no longer considered active in a role for which they no longer have a sponsoring broker. This helps maintain accurate records within the real estate regulatory framework, ensures compliance with laws, and protects consumers from any potential liability associated with an inactive agent representing them.

By mandating the immediate return of the license, the system also prevents confusion regarding the agent’s status and prevents any possibility of unauthorized practice of real estate. This immediate action promotes accountability within the profession and guarantees that all licensed agents are actively engaged with a licensed brokerage.

Timing options such as returning the license within one week, within 30 days, or at the end of the month would allow for a period during which the agent could potentially misrepresent their status, which is why these do not satisfy the necessary urgency.