Oregon Real Estate Practice Test

What does it mean when a real estate license has lapsed?

1. The license is renewed early

2. The license is no longer valid due to non-renewal

3. The license has been revoked by the state

4. The license is on probation

The correct answer is: The license is no longer valid due to non-renewal

When a real estate license has lapsed, it signifies that the license is no longer valid due to non-renewal. In the context of real estate practice, licenses are granted for a specific term, and agents are required to renew them periodically to remain in good standing. If an agent fails to complete the renewal process within the designated timeframe, the license automatically lapses. This lack of validity affects the agent’s ability to engage in real estate transactions legally, as they are not authorized to represent clients or manage property until they take appropriate steps to renew their license. Renewal processes typically involve fulfilling educational requirements and submitting necessary fees. The other options present scenarios that do not accurately reflect the meaning of a lapsed license. Renewing early would ensure ongoing validity; revocation by the state involves disciplinary actions for misconduct; probation signifies conditional status where the license remains valid but comes with certain restrictions or requirements. Understanding that a lapsed license indicates non-renewal helps clarify the significance of maintaining compliance with licensing regulations.