A: Just because you haven't had an issue in the past, doesn't mean you won't in the future. Brokers who have a history of evading licensing laws usually get caught. Performing brokerage activities in a state where you're unlicensed can lead to regulatory, civil, and criminal issues in; 1) the transaction state, 2) your home state of licensure, and/or 3) any state where you eventually apply to become a broker. You could also be subjected to "clawbacks," which is when you're forced by a judge or a regulatory commission to pay back any commissions you've earned illegally in the transaction state. In addition, clients could even stiff you in the middle of closing if they find out you're not licensed (and it would be completely legal for them to do so!). Furthermore, some states classify the unlicensed practice of real estate as a crime ranging from a misdemeanor to a felony. As you can see, performing real estate brokerage activities in a state where you're unlicensed carries significant risk. When you work with us, we help you mitigate these risks.