What happens when a licensee fails to repay the Recovery Fund?

When a licensee fails to repay the Recovery Fund, they remain suspended until the repayment is fulfilled. The Recovery Fund is a safeguard for consumers who suffer losses due to the actions of a licensed real estate professional. If a licensee has drawn upon this fund as a result of a claim against them, it is their responsibility to repay the fund. Failure to do so results in their professional license being put on hold. This ensures that the integrity of the fund is maintained and that the licensee is held accountable for their obligations. Until the debt to the fund is cleared, the licensee cannot legally operate in the real estate market within the state. This system reinforces ethical practices within the industry.