Housing and Community Development (HCD) Practice Exam

When does a salesperson's license expire?

1. On the licensee's birthday every year

2. On the last day of the 24th month after the license was issued

3. Every December 31st regardless of issue date

4. After 3 years from the initial application

The correct answer is: On the last day of the 24th month after the license was issued

A salesperson's license expiration is determined by how long it has been since the license was issued. The license typically remains valid for a period extending to the last day of the 24th month after it has been issued. This means that if a license was obtained in January, it would expire on the last day of December two years later. This is important because many states have structured their licensing systems to include a two-year renewal cycle, encouraging continuing education and professional development within that timeframe. By tying expiration to a fixed term from the issuance, it provides a predictable schedule for license holders and regulatory agencies alike to manage and renew licenses. The other options do not accurately reflect the standard practice for license expiration. For instance, some may suggest arbitrary or unrelated dates such as specific calendar dates or personal milestones which do not align with the consistent two-year renewal policy that governs most real estate licenses.