What MUST a salesperson licensee convicted of a felony do?

State real estate licensing laws universally mandate that licensees have an affirmative duty to report criminal convictions, particularly felonies, to the state's Real Estate Commission or equivalent regulatory body. This requirement ensures the Commission can evaluate the licensee's continued fitness, character, and trustworthiness to practice in the profession. The report allows the Commission to initiate a formal review and determine if disciplinary action, such as suspension or revocation of the license, is necessary to protect the public interest. The obligation is directly to the licensing authority.

A. Immediately turn in the real estate license to the Real Estate Commission

This is incorrect. Surrendering a license is a potential outcome of the Commission's disciplinary process, not an immediate, self-initiated requirement upon conviction.

B. Discuss the matter with the employing broker to decide what to do

This is incorrect. While informing the broker is a professional courtesy and likely a brokerage policy, the primary legal and regulatory obligation is to the state Commission.

D. Terminate all real estate activities

This is incorrect. A licensee's authority to practice remains valid until the Commission officially suspends or revokes the license through due process.

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1. Jennings, M. M. (2017). Real Estate Law (11th ed.). Cengage Learning. In Chapter 4, "Real Estate Licensing and Professional Affiliation," the text discusses grounds for disciplinary action, which includes the commission of a felony and the failure to report such events to the licensing authority as a separate violation. The principle is that the licensing body has the sole authority to revoke or suspend a license. (See sections on "Regulation of the Real Estate Profession" and "Grounds for Revocation or Suspension").

2. University of North Texas. (n.d.). REAL 4000 - Real Estate Law Course Materials. The course covers the Texas Real Estate License Act (TRELA) as an example of state regulation. Under the Texas Administrative Code, Title 22, Part 23, Chapter 535, Rule §535.91(c), it is explicitly stated: "A license holder shall notify the commission not later than the 30th day after the date of a final conviction of or plea of guilty or nolo contendere to a felony..." This exemplifies the direct reporting requirement to the commission.

3. Gaddy, V. L., & Mettling, G. (2022). Modern Real Estate Practice (21st ed.). Dearborn Real Estate Education. Chapter 20, "Real Estate License Laws," details the regulatory powers of state commissions, including the authority to discipline licensees. The chapter explains that convictions for certain crimes must be reported and can lead to suspension or revocation after a hearing, confirming that reporting is the initial required step.