Active vs. Inactive: Understanding Your NC Real Estate License Status
Status Matters More Than You Think
In North Carolina, simply holding a license number from the North Carolina Real Estate Commission (NCREC) is not enough to begin working. Your ability to legally assist clients in buying, selling, or leasing property is entirely dependent on your license status. The most crucial distinction you must understand is between an Active license and an Inactive license.
If your license is Inactive, it means you are legally prohibited from engaging in any brokerage activities for compensation.
Active Status: The Green Light to Practice
An Active license status is the goal for anyone intending to earn money selling real estate. It means you are legally authorized by the NCREC to perform all brokerage activities, including:
- Negotiating contracts and terms of sale.
- Showing properties for sale or rent.
- Listing properties for a seller.
- Receiving commission for any transaction.
Requirements to Maintain Active Status:
| License Type | Active Status Requirement |
| Provisional Broker (PB) | Must be affiliated with a Broker-in-Charge (BIC) AND must complete the 90 hours of Post-Licensing education within 18 months. |
| “Full” Broker | Must complete the 8 hours of Annual Continuing Education (CE) by June 10th each year. |
Inactive Status: The Bench Warmer
An Inactive license status means your license is current with the NCREC and renewed, but you cannot legally practice real estate. Your license can become Inactive for several reasons:
- Choice: You or your BIC requested the status to be Inactive (e.g., taking a sabbatical).
- Failure to Affiliate: A Provisional Broker did not affiliate with a BIC after passing the exam.
- Education Lapse: A Full Broker failed to complete the required 8 hours of Continuing Education by the annual June 10th deadline.
- Provisional Lapse: A Provisional Broker failed to complete the required 90 hours of Post-Licensing within the 18-month deadline.
Can I still earn money with an Inactive license? Absolutely not. If you perform any brokerage activity while Inactive, you are practicing without a license, which is a serious violation that can lead to NCREC disciplinary action and possibly criminal charges.
Key Takeaway
To practice real estate in North Carolina, your license must be Active. The primary difference is the ability to engage in brokerage activities for compensation. To activate a Provisional Broker license, you must affiliate with an NC Broker-in-Charge. To keep any license Active, you must meet all Continuing Education and Post-Licensing deadlines.