Free Pennsylvania Real Estate Practice Exam Practice Question
What is the status of a person's license after a claim has been paid from the Real Estate Recovery Fund?
Correct Answer: D
Rationale: When a claim is paid from the Real Estate Recovery Fund, the person's license is automatically suspended. This measure protects the public by ensuring that individuals who have caused financial harm cannot continue to operate in real estate.
Option A, "Active," is incorrect because the license cannot remain active after a claim has been paid.
Option B, "Inactive," is not applicable as the license status changes to suspended rather than inactive.
Option C, "Reinstated," is also wrong since the license does not get reinstated until the individual fulfills specific conditions, including repaying the fund.
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