What must a broker do upon the death of their sponsoring broker?

When a sponsoring broker passes away, it is crucial for the broker to notify all sponsored licensees and return their licenses to the commission. This is because the sponsoring broker's death creates a lapse in the broker-client relationship that necessitates re-evaluation of the licensees' standing and representation. By notifying the licensees, the broker ensures that they understand the change in their sponsorship status and can take necessary action regarding their licenses.

Returning the licenses to the commission is also essential, as it allows the regulatory body to manage the transition appropriately and ensures that all parties operate within the guidelines set forth by Louisiana real estate regulations. This procedure protects all involved, including clients and licensees, by ensuring that each agent operates under a valid, active sponsorship.

Other actions mentioned, such as selling properties or recruiting a new sponsor, do not address the immediate administrative requirements that arise from the death of the sponsoring broker and do not fulfill the necessary protocols established by the regulatory authority.