Do Inactive Brokers still need to pay the annual renewal fee?
A common misconception among brokers who step away from the business is that if their license is on Inactive Status, they don’t need to worry about renewal fees or deadlines. Do Inactive NC Real Estate Brokers still need to pay the annual license renewal fee?
The answer is a definitive YES. An inactive license is still considered current by the North Carolina Real Estate Commission (NCREC) and must be renewed annually to prevent it from expiring.
Why the $45 Fee is Mandatory for Inactive Status
The annual renewal fee (currently $45.00) ensures that your license remains in the Commission’s current database, holding your place should you decide to return to Active Status.
- Inactive vs. Expired:
- Inactive Status: You cannot practice real estate, but your license is current and easily reactivated by submitting Form REC 2.08 (and clearing any education deficits). You must pay the $45 renewal fee by June 30th.
- Expired Status: Your license is void. This happens if you fail to pay the $45 renewal fee by June 30th. Reinstatement is expensive ($90+) and complex, often requiring additional education or retaking the exam.
- Indefinite Inactivity: A broker can keep their license on Inactive Status indefinitely, provided they log in and pay the $45 renewal fee every year by the June 30th deadline. This is a low-cost way to maintain the license and professional credential while pursuing other endeavors.
The Education Exception
While the annual renewal fee is mandatory for inactive brokers, the Continuing Education (CE) requirement (8 hours) is not mandatory while the license is Inactive.
Caution: If you do not complete CE while Inactive, you will develop a CE deficiency. To return to Active Status, you must then complete all missed CE hours, as detailed in the previous article (Blog Post 95).
Key Takeaway
Inactive NC Real Estate Brokers must pay the annual $45 renewal fee to the NCREC by the June 30th deadline to keep their license current. Failure to pay causes the license to expire, leading to costly and complex reinstatement requirements, though Continuing Education (CE) is generally not required while remaining inactive.