(a) The license of an individual broker becomes inactive when:(1) the Commission receives an application for inactive status from the broker; or(2) the broker is placed on inactive status by the Commission for failure to comply with a requirement of the Act or this chapter.(b) The license of a business entity broker becomes inactive when:(1) the Commission receives an application for inactive status from the broker;(2) the entity is not qualified to transact business in Texas;(3) the designated broker's license:(A) expires;(B) is suspended, including a probated suspension; or(C) is revoked, including a probated revocation; or(4) the designated broker dies or resigns as designated broker, except as provided in §535.124 of this subchapter (relating to Death of a Designated Broker).(c) The broker must confirm to the Commission in writing that the broker has given all sales agents sponsored by the broker written notice of termination of sponsorship at least 30 days before filing the application for inactive status.(d) It is the responsibility of the broker on inactive status to pay all required license renewal fees timely to prevent the inactive license from expiring.(e) To return to active status, a broker on inactive status must apply to the Commission for return to active status on a form approved by the Commission, pay the appropriate fee, and satisfy any continuing education requirements under the Act and this chapter.