Oregon Broker PSI Practice Exam

When does the renewal of a real estate license become effective?

1. Upon submission of the application

2. When renewal requirements are met

3. After a waiting period of 30 days

4. At the discretion of the licensing board

The correct answer is: When renewal requirements are met

The renewal of a real estate license becomes effective when renewal requirements are met. This means that the broker must complete all necessary steps, which typically include submitting the renewal application on time, fulfilling continuing education requirements, and paying any required fees. Once these conditions are satisfied, the renewal is processed, and the updated license is issued, confirming that the broker is legally permitted to continue operating in the real estate field. It's essential for brokers to understand that simply submitting the application alone does not guarantee renewal. The licensing process is designed to ensure that all requirements are thoroughly completed, which helps maintain professional standards in the industry. This approach protects consumers and reinforces the integrity of the real estate profession.