(a)

1. (1) Within seven (7) days after the employment or association of a licensee with a principal broker ends, such principal broker shall notify the Arkansas Real Estate Commission of such termination and return to the commission the license and pocket card of the terminated licensee.
2. (2) Such notification shall automatically inactivate the license.
3. (3) Immediately upon termination, the terminated licensee shall deliver to the principal broker his or her pocket card.

(b)

1. (1) The license of a licensee terminated under subsection (a) of this section may be transferred to another firm, after the license and pocket card have been returned to the commission, by the licensee's filing with the commission a transfer application signed by the new principal broker.

2. (2) Such transfer application must be accompanied by a:

   1. (A) Statement that the licensee is not taking any:

(i) Listings;

1. (ii) Management contracts;

   1. (iii) Appraisals;

      1. (iv) Lease agreements;
      2. (v) Copies of any such documents; or
      3. (vi) Any other pertinent information belonging to the former principal broker or firm; and
   2. (B) Transfer fee.

2. (3) At the time the transfer application and the accompanying items are filed, a temporary interim license may be issued.

   1. (c)
3. (1) If an actively licensed broker or salesperson does not wish to continue to engage in the real estate business, such broker or salesperson shall return any license and pocket card in his or her possession to his or her principal broker who shall then return these items to the commission for inactive status.

4. (2) A broker who closes his or her firm shall:

   1. (A) Remove all signs reflecting the company name; and
   2. (B) Return all licenses and pocket cards issued to the principal broker to the commission office for inactive status.

5. (3) If a real estate firm shall close its office, any real estate salesperson licensed with such principal broker shall be entitled to transfer to a new principal broker upon compliance with the appropriate provisions of the Real Estate License Law, Arkansas Code § 17-42-101 et seq., and this part.

   1. (d) If the principal broker is deceased, unavailable, or for any reason unwilling or unable to act, then the licensee has the responsibility to notify the commission in writing of the termination or transfer and of returning the pocket card and license.

(e)

1. (1) A principal broker of a real estate firm or designated executive broker of a branch office, who has no ownership interest in the firm, who is terminated by the firm’s owner or designee, shall notify the commission in writing immediately upon termination.

2. (2) The written notification must include a statement that:

   1. (A) The principal broker or branch office designated executive broker has been terminated by the owner of the firm or designee; and
   2. (B) The terminated principal broker or executive broker is relinquishing his or her responsibilities as principal broker or branch office designated broker effective the termination date.
3. (3) The respective broker license and pocket card must be returned with the written notification.

4. (4)

   1. (A) If the real estate firm or branch office is not closing, and another principal broker or branch office designated broker is not immediately available to assume responsibilities of the real estate firm or branch office, the owner of the real estate firm may request in writing that the commission permit the real estate firm to continue operating pursuant to 17 CAR § 220-707.

   2. (B) If the owner of the real estate firm closes the firm and ceases to do business and maintain an office, the principal broker shall:

      1. (i) Notify the commission in writing of said closing;
      2. (ii) Return all licenses and pocket cards to the commission; and
      3. (iii) Comply with 17 CAR § 220-1006(c).
5. (5) A principal broker or branch office designated executive broker who has been terminated by the real estate firm owner or designee of a real estate firm that is not closing, and who does not notify the commission in writing, relinquish responsibilities as principal broker, or designated branch office executive broker, and return his or her broker license and pocket card to the commission, shall be presumed to be in violation of Arkansas Code § 17-42-311 and subject to appropriate sanctions.