What is the status of a person's license after a claim has been paid from the Real Estate Recovery Fund to settle a claim against that licensee?

An active license indicates that the individual is legally allowed to practice real estate without restrictions. However, once a claim is paid from the Recovery Fund, the license cannot remain active due to the established misconduct, necessitating suspension as a form of disciplinary action.

An inactive license status means the individual has chosen not to engage in real estate activities but retains the option to reactivate their license. This status does not apply when a claim has been paid from the Recovery Fund, as the license must be suspended to address the issues that prompted the claim.

Reinstatement pertains to restoring a previously suspended or revoked license after meeting specific requirements. However, after a claim is paid from the Recovery Fund, the license is not reinstated automatically; it must undergo a formal suspension first, which is distinct from the process of reinstatement.