What is the status of a person’s real estate license after a claim has been...

Under63 P.S. § 455.803 (Real Estate Recovery Fund), if the Pennsylvania Real Estate Commissionpays out money from the Real Estate Recovery Fund due to a licensee’s misconduct, the license is automatically suspended.

A suspended license means the person cannot legally practice real estate until they reimburse the Recovery Fund for the full amount paid, plus interest.

This is a consumer protection measure to ensure that licensees who cause financial harm cannot continue practicing until restitution is made.

Once repayment is made, the licensee must apply for reinstatement, which is not automatic and may require a hearing.

Why the other answers are incorrect:

Option A (Active):The license does not remain active after a payout from the fund.

Option B (Inactive):"Inactive" means the licensee voluntarily stopped practicing, which is not the case here.

Option C (Reinstated):Reinstatement does not occur automatically; the licensee must repay the fund and petition for reinstatement.