Under what condition can a brokerage firm continue to operate if the qualifying broker leaves?

A brokerage firm can continue to operate if the qualifying broker leaves provided that a new broker is appointed within 30 days. This condition is critical because the qualifying broker is responsible for the overall management of the brokerage and ensuring compliance with real estate laws. If a brokerage lacks a designated qualifying broker, it cannot conduct real estate transactions legally.

By appointing a new qualifying broker swiftly (within 30 days), the firm ensures continued compliance with state regulations and maintains its operational status. This prompt action protects both the brokerage's interests and those of its clients, who depend on the firm's ability to function seamlessly.

In contrast, an extended period of inactivity or waiting for agent agreements does not meet the legal requirements imposed by real estate laws, which necessitate having a qualifying broker in place to oversee operations at all times. A current firm license does not substitute the need for a qualifying broker. Thus, appointing a new broker within the stipulated time frame is essential for maintaining the firm's legitimacy and function in real estate transactions.