If a payment is made from the Real Estate Recovery Fund due to improper activities of a licensee, what happens to the licensee's license?

When a payment is made from the Real Estate Recovery Fund due to the improper activities of a licensee, the license of that individual is automatically revoked. This process serves as a significant consequence for a licensee who has engaged in conduct that harms clients or the public, reflecting the serious nature of such improprieties within the real estate industry.

The revocation of the license is a necessary step to ensure accountability and protect the public from further potential harm caused by the licensee's actions. This action not only reinforces ethical standards within the real estate profession but also acts as a deterrent for other licensees, encouraging them to adhere to the laws and regulations governing real estate practice.

The other options do not accurately reflect the established procedures. For instance, while the potential for repayment may provide a chance for remediation, it does not negate the fact that a payment from the Recovery Fund indicates serious misconduct. Fines and suspensions are also measures that can be taken under different circumstances but are not the immediate result of a Recovery Fund payment.