I had an agent on the other side that wasn't actively licensed - I kept the whole commission and smiled - it made up for the pain he caused everyone! 

You state RE board has the mechanism to make that agent's life very uncomfortable.

Plus, More than likely, his broker is unaware that the license has lapsed. I suggest notifying the broker. He will have to step in or assign another agent to the transaction. The unlicensed agent will be prohibited from earning a commission.

I would choose the 'kind' route and advise the other agent their license has lapsed. I would further advise this transaction (their side) be handed by another agent of their choice while the issue is resolved.

I would NOT see this as a predatory opportunity to take the money and run.

Shameful.

Well, I've never had this happen. But I would take it to my broker in charge to resolve.

I let them know that there's no compensation heading their way.

If it is not an attorney and they don't pay the dues why should they get paid!

Here they would probably not have the correct forms and that alone would raise a red flag!

Vick,

I think all the answers that have been given are valid.  A

Oh golly geeeee whiz....call the ....local and then state authorities...and just "say no" to the commission !

I will cease any conversation with the person and have a discussion with my broker first who should make an immediate call to that person's broker of record.   Has never happened to me...yet. 

Take their commission and report them to the board & BRE. It's what they sign up for when they pull a move like that. Best education too on being licensed.

that should be reported and then the seller pays you the commission....period....

I contact their last sponsoring broker.

Go directly to the broker. Do not pass go.

I confront them directly.

I would bring the problem to my broker. The individual should be made aware that we know that they are working illegally and cannot be paid a commission. Their client should have the opportunity to be represented by a licensed agent. 

Yikes!  I've never experienced that insanity.  

That's something where I would consult with my broker, who would advise how to proceed. Could be that the agent is licensed in another state, and thought license was reciprical? I suppose they could not legally be paid, and could even face crimianl charges for practicing without a license.

Vick Pacheco ~ Luxury Homes & Lifestyles I would inform them and report them to the real estate commission. It is against the law to practice real estate without a license.

most of the comments below are all good and valid, my concern would take me to my broker asap, as there have been representations made already that are in jeopardy as a unlicensed agent. You bear some additional liability in this deal if you know and dont immediately stop the transaction with this person. (former agent)

We can not pay them here in NC. The way the laws are hereif the firm pays anything to an unlicensed person, the firm is breaking the law.

Wow - I'd defer to my broker's wisdom on this. Obviously, an unlicensed agent can't collect a commission, but s/he also can't show properties or act on behalf of a client either. I'm pretty sure my broker would advise we report it to the board.

Answer most often in thread above:
TAKE IT TO YOUR BROKER.  

IMHO -The real issue is maintaining the trust and confidence of the public. Everyone is busy but the basics are the basics - gotta have an active license!

Have a successful day -
Lynn 

Like what...the agent did not get enough notices to renew their license?

Lets not pretend that the agent did not know...

Eve

PS:  One time I was at an ethics hearing on behalf of the ethics committe...the case was about a "top producer" whose license expired 3 years ago.  Broker tried to claim they did not know...sure.  Both were fined and required to take some classes.  

Eve

Call him on it and his broker

It would be proper to notify the Broker and: t would be their responsibility to address the unlicensed agent.

Simply do not deal with unlicensed people.  You do not have to do anything.

I'd let my broker know and see if he wants to let the other agents broker know.