Active/Inactive License Status

On January 1, 1998, a law which creates an "inactive" licensing status for New Hampshire brokers and salespeople became part of R.S.A. 331-A. The Real Estate Commission strongly supported the statutory creation of such a licensing status because it was considered the only feasible way that the continuing education requirement for real estate licensees could be raised without imposing an unfair economic burden on the large majority of real estate licensees - those who do not, or cannot practice real estate actively.

On a practical basis, many thousands of the current 11,800 real estate licensees were already in an inactive status. They were keeping their licenses for use later by simply fulfilling the easy 3 hour continuing education requirement and sending in a renewal fee every two years. The law allows these licensees to remain inactive without imposing any further requirements on them. Only licensees who elect to be "active" are required under the Administrative Rules of the Commission to take more than the 3 hour "core" continuing education course. Here's how it works:

  1. Licensees who chose to be in inactive status will not hold a license. Broker licensees will not need to purchase a bond.
  2. To stay in inactive status, licensees take the currently required 3 hour
    continuing education "core" course. This insures that if they activate their licenses later, they will at least be current with the basic ("core") changes in real estate practice since they first became inactive.
  3. To activate their licenses, both brokers and salespeople must apply to the Commission. Broker licensees must show evidence of an active bond and when the 6 hour continuing education extension requirements go into effect, they must show a certificate that the entire 9 hour continuing education requirement has been satisfied (This 6 hour increased C.E. requirement goes into effect on March 1, 1999).
  4. While this law allows licensees to be inactive with only a 3 hour course requirement, it also places an extra barrier (the activation process) in the path of previously inactive, inexperienced licensees before they "jump into" any windfall opportunities that they are not equipped to handle.

As a board established to protect consumers, the Real Estate Commission believes that New Hampshire citizens have a right to require that the licensees they are dealing with have the highest degree of professionalism and knowledge possible. The establishment of an inactive status insures that licensees are providing up-to-date professional services, and will protect the licensees themselves by helping them to better understand the ever-changing demands of the real estate business and their increasing exposure to civil liability.

"Licensing"