California Real Estate Practice Exam

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When a payment is made on behalf of a licensee from the recovery account, what must occur before the licensee’s license can be reinstated?

The licensee must complete additional education
The licensee must serve a probationary period
The licensee must pass a test
The licensee must reimburse the trust fund the full amount paid

The correct answer is: The licensee must reimburse the trust fund the full amount paid

When a payment is made on behalf of a licensee from the recovery account, it means that the licensee used money from the trust fund to cover a consumer complaint or action against them. Therefore, in order to ensure that the trust fund remains sufficiently funded and able to cover claims, the licensee must reimburse the trust fund the full amount paid before their license can be reinstated. This is the only option that directly relates to the use of the trust fund, while the other options are potential requirements that could be implemented as part of the reinstatement process, but are not directly related to the trust fund. These options could potentially be additional consequences or steps for the licensee to complete, but they do not address the specific issue of reimbursing the trust fund.