What will occur if a licensee fails to renew their license?

If a licensee fails to renew their license, the consequence is that the license will lapse and become ineffective. This means that the individual will no longer have the legal authority to conduct real estate transactions, as their license is not valid due to the non-renewal. A lapsed license requires the licensee to complete the renewal process, which may involve fulfilling additional requirements, such as completing continuing education or paying fees, before they can reactivate their license.

The automatic renewal of a license does not occur if the renewal requirements are not met, and a lapse signifies that the licensee has not taken necessary actions to maintain their credential. While there may be penalties such as fines or suspensions associated with disciplinary actions in some contexts, the direct result of failing to renew is a lapse in the validity of the license itself. Therefore, understanding that a license lapses under these circumstances is key for real estate professionals in Minnesota.