If the license of a brokerage is suspended or revoked, what happens to the salespersons' licenses?

When the license of a brokerage is suspended or revoked, the salespersons’ licenses are automatically suspended as well. This is because the validity of a salesperson's license is closely tied to the status of their brokerage. If the brokerage cannot operate legally due to the suspension or revocation of its license, the salespersons cannot practice their profession under that brokerage either. Therefore, the automatic suspension of the salespersons' licenses ensures that they are not permitted to engage in real estate activities while the brokerage is out of compliance.

In contrast, the other options do not align with regulatory practices. Keeping the licenses active or renewing them would imply that the salespersons could continue working, which is not permissible during a brokerage's license suspension or revocation. Similarly, converting them to inactive status suggests that they could still maintain a form of license, which is also not the case under these circumstances. Hence, the correct understanding involves the direct impact of the brokerage's license status on the salespersons’ ability to operate legally.