What happens if a licensed real estate broker wants to change their sponsoring broker?

When a licensed real estate broker decides to change their sponsoring broker, it is essential that they go through a proper transition process. This process includes waiting for the issuance of a new license under the new sponsoring broker. The reason for this requirement is that the sponsoring broker is responsible for the actions of their affiliated agents. When a broker changes their sponsorship, they need to ensure that all regulatory and contractual obligations are correctly addressed.

While the transition is occurring, the broker cannot operate under the new sponsoring broker until the new license is officially issued. This ensures that all parties are aware of the change and that the new broker can effectively manage and supervise the broker’s activities moving forward. Hence, the correct answer emphasizes the need for the new license to be issued before the broker can begin working under the new sponsorship.

The other options do not accurately reflect the process: retaking the State exam is unnecessary when transferring, losing the license during the transfer is not a standard outcome, and continuing to work under the previous broker without proper authorization could lead to compliance issues.