Leasing License Practice Exam

If a license expires after 2 years, what status does it obtain?

1. Inactive

2. Revoked

3. Inoperative

4. Suspended

The correct answer is: Inoperative

When a license expires, it generally reflects a situation where the licensee has not met the renewal requirements within the stipulated time frame. The correct status for an expired license is typically categorized as "inoperative." This means that the license is no longer active, and the licensee is not legally permitted to engage in any activities associated with the license until it is renewed or reinstated. The term "inoperative" effectively conveys that the license is inactive due to expiration, but it retains the possibility for renewal, depending on the regulations in place. In contrast, other statuses like "inactive" usually refer to licenses that have been intentionally put on hold or voluntarily inactive by the licensee, while "revoked" implies that a license has been permanently terminated due to serious infractions. "Suspended" refers to a temporary halt of the license, often as a disciplinary action for violations. Understanding these distinctions is crucial for licensed professionals to navigate their licensing status appropriately and to remain compliant with regulatory requirements.