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Real Estate Licensing RePA_Sales_S Exam - Topic 3 Question 7 Discussion

Actual exam question for Real Estate Licensing's RePA_Sales_S exam
Question #: 7
Topic #: 3
[All RePA_Sales_S Questions]

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

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Suggested Answer: D

Under 63 P.S. 455.803 (Real Estate Recovery Fund), if the Pennsylvania Real Estate Commission pays out money from the Real Estate Recovery Fund due to a licensee's misconduct, the license is automatically suspended.

A suspended license means the person cannot legally practice real estate until they reimburse the Recovery Fund for the full amount paid, plus interest.

This is a consumer protection measure to ensure that licensees who cause financial harm cannot continue practicing until restitution is made.

Once repayment is made, the licensee must apply for reinstatement, which is not automatic and may require a hearing.

Why the other answers are incorrect:

Option A (Active): The license does not remain active after a payout from the fund.

Option B (Inactive): 'Inactive' means the licensee voluntarily stopped practicing, which is not the case here.

Option C (Reinstated): Reinstatement does not occur automatically; the licensee must repay the fund and petition for reinstatement.


63 P.S. 455.803 -- Real Estate Recovery Fund Suspension Rules

by Haydee at Nov 22, 2025, 10:29 AM

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Joanne
9 hours ago
It's definitely inactive after a claim is paid.
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Filiberto
6 days ago
Hmm, I'm going with D) Suspended. It just seems more logical that the license would be suspended rather than reinstated or something. Gotta keep those shady real estate agents in check, you know?
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Ashlee
11 days ago
The correct answer has to be B) Inactive. I mean, why would they keep the license active after a claim has been paid? That's just asking for trouble.
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Barbra
16 days ago
A) Active? Really? I don't think the licensee's real estate license would still be active after a claim has been paid against them. That's just crazy.
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Louis
21 days ago
Haha, the answer is obviously C) Reinstated. Why would they reinstate the license after a claim has been paid? That doesn't make any sense.
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Silvana
26 days ago
D) Suspended seems like the correct answer to me. The licensee's real estate license should be suspended in this scenario.
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Rose
1 month ago
I feel like I read that a license gets suspended after a claim is paid, but I need to double-check my notes.
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Vincent
1 month ago
This sounds similar to a practice question we did last week. I think the answer might be B, but I could be mixing it up.
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Margret
1 month ago
I remember something about the Recovery Fund, but I can't recall if it leads to suspension or just being inactive.
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Micaela
2 months ago
I think the license goes inactive after a claim is paid, but I'm not completely sure.
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Fatima
2 months ago
Ah, this is a good one. I remember discussing this in class. I think the correct answer is D - Suspended. The licensee's license gets suspended after a claim is paid out, until they can get it reinstated.
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Altha
2 months ago
I'm pretty confident the answer is B - Inactive. The licensee must have done something to warrant a claim against them, so their license would likely be inactive until they resolve the issue.
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Vince
2 months ago
I'm not totally sure about this one. I know the Recovery Fund is there to protect consumers, so maybe the license gets reinstated after the claim is settled? I'll have to review my notes on that.
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Viola
2 months ago
I think it's D) Suspended. Makes sense after a claim.
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Margurite
2 months ago
I think the answer is B) Inactive. The licensee's real estate license should be inactive after a claim has been paid from the Real Estate Recovery Fund.
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Phuong
3 months ago
Wait, really? I didn't know that!
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Beatriz
3 months ago
Okay, let me see. If a claim has been paid from the Real Estate Recovery Fund, that probably means the licensee did something wrong. So I'm guessing the status would be suspended or inactive.
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Arlette
3 months ago
Hmm, this seems like a tricky one. I'll need to think through the different options carefully.
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Norah
3 months ago
Yeah, that makes sense. A claim usually leads to some action.
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