Final answer:
A California real estate licensee who cannot pay a judgment amount that leads to a consumer being awarded money from the real estate Recovery Account faces license suspension. The license remains suspended until full repayment plus interest to the Recovery Account. License reinstatement may require an additional assessment payment.
Step-by-step explanation:
If a California real estate licensee is involved in a case where they are unable to pay the judgment amount and a consumer is awarded compensation from the real estate Recovery Account, there are specific consequences for the licensee. The California Department of Real Estate (DRE) may order the suspension of the licensee's real estate license.
The suspension remains in effect until the licensee repays the Recovery Account in full, plus interest. Additionally, the DRE could also require the licensee to pay an assessment to the Recovery Account before reinstating their license. The aim of the Recovery Account is to provide financial protection to consumers who have obtained a final civil judgment against a licensee for fraud or certain other misconduct and are unable to enforce the judgment.