Idaho Real Estate Practice Exam

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Prepare for the Idaho Real Estate Exam with study aids like multiple choice questions and flashcards, each with detailed hints and explanations. Get exam-ready!

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What happens to a licensee if the real estate recovery fund pays out for them?

Their license is permanently revoked
Their license is suspended until the judgment is repaid
They must complete additional training
They have to pay a fine

The correct answer is: Their license is suspended until the judgment is repaid

When a real estate recovery fund pays out on behalf of a licensee, that licensee's license is suspended until they have repaid the judgment amount. This system is designed to protect consumers who may have suffered losses due to the actions of a licensee, allowing for recourse through the recovery fund. However, it is crucial that the licensee ultimately rectifies their financial obligations to the fund, hence the suspension serves as a safeguard to ensure the licensee takes responsibility for the debt incurred due to their professional conduct. In this context, the other options do not illustrate the correct process. Permanent revocation of a license would be too severe and not aligned with the intent of the recovery fund, which is more about consumer protection than punishment. Additional training may not be a requisite following a payout, and a fine is not a direct consequence of the recovery fund's involvement.