What happens to a licensee involved when a claim against the fund is paid?

When a claim against the fund is paid on behalf of a licensee, their license is suspended until they repay the amount that was disbursed from the fund. This provision serves as a mechanism to hold licensees accountable for their actions and reinforces the importance of maintaining ethical and professional standards in real estate transactions. By requiring repayment, the system seeks to ensure that the recovering fund is replenished for future claims and discourages misconduct among licensees.

This approach emphasizes the obligation of the licensee to rectify their financial responsibilities arising from a claim, thus supporting the integrity of the profession and protecting consumers. As a result, the license remains in a suspended status while the repayment is pending, reflecting a clear link between accountability and licensure in the real estate industry.