What can happen if a licensee fails to renew their license on time?

When a licensee fails to renew their license on time, the license may expire, leading to the loss of the right to practice real estate. This expiration means that the individual is no longer legally permitted to engage in real estate transactions, which can have serious implications for their career and any ongoing business activities. It is critical for real estate professionals to stay aware of renewal dates and the associated requirements to maintain their licenses.

In contrast, the other options misrepresent the consequences of failing to renew. Licensees do not receive an automatic extension, and a failure to renew does not result in automatic renewal without penalties. Additionally, previous transactions remain valid despite license expiration, as long as they were conducted legally while the license was active. Thus, option A accurately reflects the situation that arises from non-renewal.