What happens to a commission if a salesperson's license is expired at the time of closing?

If a salesperson's license is expired at the time of closing, the commission is earned based on the work completed prior to the expiration. Generally, real estate commissions are tied to the performance of the salesperson and the completion of a sale for which they were responsible. If the commission was earned while the salesperson was licensed, they typically retain the right to collect that commission, even if their license has subsequently expired.

This is based on the understanding that the duties related to the transaction were fulfilled under a valid license. However, it is essential to note that any work performed after the expiration of the license would not be compensated, nor would any new transactions be eligible for commission collection until the license is renewed. This principle reinforces the importance of maintaining an active and valid license to continue earning commissions on future transactions.