Oregon Real Estate Practice Test

What does it indicate if a real estate license cannot be renewed?

1. The licensee must retake the state exam

2. The license is considered lapsed

3. The license is permanently revoked

4. The license is on temporary hold

The correct answer is: The license is considered lapsed

When a real estate license cannot be renewed, it indicates that the license is considered lapsed. This means that the individual has missed the renewal deadline and has not completed the necessary steps to keep their license in good standing. A lapsed license typically means that the individual can no longer legally operate as a real estate agent until they either renew the license within a specified grace period, if applicable, or take specific actions to re-establish their licensure. In contrast to other options, which imply either an inability to practice temporarily or a more severe or different status concerning the license, the status of being lapsed clearly signifies that the license is currently inactive due to non-renewal, rather than a permanent revocation or a temporary hold.