Iowa Real Estate Practice Exam

If a licensee submits an application on January 1 but has not completed the required education courses, what is the status of the license?

1. The license remains active

2. The license becomes inactive

3. The commission will extend the expiration date

4. The license is placed in a pending status

The correct answer is: The license becomes inactive

When a licensee submits an application without having completed the required education courses, the status of the license is marked as inactive. This is because the regulatory framework governing real estate licenses mandates that all required educational prerequisites must be fulfilled before a license can be granted active status. An inactive license means that the individual cannot perform real estate activities legally, as they have not met the necessary educational criteria set forth by the state. The other potential statuses would not apply in this scenario: the license cannot remain active if the required education is incomplete, nor can the commission arbitrarily extend the expiration date without compliance with educational prerequisites. Placing the license in a pending status does not align with the regulatory process; pending typically applies when documents are being reviewed, not when essential education is lacking. Thus, the correct understanding lies in the fact that an inactive license status ensures compliance with the state's educational requirements.