Over the course of his career, a licensed Alabama broker named Gerald has been the subject of multiple Recovery Fund claims. After payments are made from the Alabama Real Estate Recovery Fund totaling $150,000 attributable to Gerald's fraudulent conduct, what automatically happens to Gerald's real estate license?
Correct Answer
B) Gerald's license is automatically suspended until the Recovery Fund is fully repaid.
Under Code of Alabama §34-27-31, when a payment is made from the Alabama Real Estate Recovery Fund on behalf of a licensee, that licensee's license is automatically suspended. The suspension remains in effect until the licensee fully repays the Recovery Fund, including interest. This automatic suspension is a statutory consequence and does not require a separate AREC disciplinary hearing.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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