Broker P is the sole proprietor of XYZ Realty. P employs five salespersons, all of whom have been practicing real estate for at least two years. Under the license law, if P should die, which of the following actions can be taken?

This choice is incorrect because while the death of a broker can disrupt ongoing transactions, it does not automatically nullify contracts or revoke licenses. Salespersons can still operate under specific provisions until a new broker is designated, ensuring continuity of business.

While the Real Estate Commission has the authority to intervene, this action is not mandatory following a broker's death. Instead, the focus is on allowing existing salespersons to maintain continuity through a temporary license rather than assigning an external broker to handle pending business.

This option is incorrect as it misrepresents the regulations. A salesperson cannot simply act as a broker without a license, even temporarily. Instead, they must apply for and obtain a temporary broker's license to legally manage the firm's activities after the broker's death.