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Upon payment of any amount from the recovery fund in settlement of a claim in the satisfaction of a judgement against a licensed broker or salesperson, the license of such a broker or salesperson shall be automatically ____. A discharge of bankruptcy shall not relieve a person from the penalties and disabilities provided.

User Thkru
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Final answer:

If a licensed broker or salesperson's actions lead to a claim being settled from a recovery fund, their license is typically suspended or revoked. Bankruptcy does not protect against these penalties, maintaining industry integrity.

Step-by-step explanation:

Upon payment of any amount from the recovery fund in settlement of a claim in the satisfaction of a judgement against a licensed broker or salesperson, the license of such a broker or salesperson shall be automatically suspended or revoked. A discharge of bankruptcy shall not relieve a person from the penalties and disabilities provided.

This scenario is typical in real estate law where a recovery fund compensates clients for monetary losses due to the illegal action of a licensed real estate professional. When the fund is accessed to settle a claim, the responsible professional faces serious consequences, including the loss of their license. This legal principle ensures that standards in the industry are upheld and provides a form of protection to consumers.

User Qmega
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