What happens to an agent's license if the Real Estate Recovery Fund pays on their behalf?

When the Real Estate Recovery Fund pays out a claim on behalf of an agent, it results in the automatic revocation of that agent's license. This provision is in place to ensure accountability among real estate professionals. The expectation is that agents adhere to ethical standards and practice responsibly; if a claim is made against them that necessitates payment from the Recovery Fund, it indicates a failure to meet these standards. Therefore, the revocation serves as a means to protect the public from individuals who have not upheld their duties within the real estate profession.

The other options do not accurately reflect the consequences outlined in the law. Automatic suspension or probation does not occur; the severe consequence of revocation emphasizes the seriousness of the misconduct that led to the fund's involvement. Keeping the license in force while charging a fine also does not align with the framework designed to uphold the integrity of the real estate profession.