What happens to a license after a Recovery Fund payment is made in the licensee's name?

• A. License suspended until money plus interest is repaid; judgement assigned to FREC with a lien that can foreclose
• B. License Revoked Permanently
• C. No Effect on the License
• D. Only a Civil Penalty Is Imposed

Answer: (A)

When the Recovery Fund pays a claim against a licensee, the licensee must reimburse the Fund for the amount paid plus interest. The license is suspended until that repayment is made. The resulting judgment can be assigned to the Florida Real Estate Commission, and a lien can be placed on the licensee’s real property, potentially foreclosing if the debt isn’t repaid. This mechanism keeps the Fund whole while temporarily barring the licensee from practice until restitution is satisfied.