What is the required action if a broker terminates a salesperson’s contract in Pennsylvania?

When a broker terminates a salesperson's contract in Pennsylvania, the correct action is to notify the Real Estate Commission within 10 days. This requirement is established to ensure that the Commission maintains accurate records of active licensed individuals and their employment status. Reporting the termination promptly allows the Commission to update its licensing database and keeps the regulatory environment transparent and accountable.

The obligation to notify the Commission supports the integrity of the profession by ensuring that only appropriately licensed individuals are engaging in real estate activities. Such a process helps protect consumers and maintains standards within the industry. The 10-day window reflects the importance of timely notifications in regulatory practices.

Other actions, such as notifying local authorities or terminating all ongoing transactions immediately, are not mandated under Pennsylvania state law in this context. Filing a complaint with the state board is also not the appropriate action for a broker's termination of a salesperson, as the situation pertains to employment status rather than a grievance or compliance issue that would necessitate a formal complaint.