What happens to a licensee's license if they receive a payment from the Transaction Recovery Fund?

When a licensee receives a payment from the Transaction Recovery Fund, their license is automatically revoked. This is a specific consequence designed to protect the public and maintain the integrity of real estate transactions in Virginia. The fund is established to compensate individuals who have suffered monetary losses due to the wrongdoing of a licensed real estate agent.

When a claim against a licensee is honored, it indicates a serious violation of professional conduct. As a way to uphold ethical standards within the industry and to discourage misconduct, the law stipulates that the license of anyone who has accessed the fund must be revoked. This ensures that the individual is no longer permitted to operate as a licensed real estate agent, thereby protecting consumers from potential future harm.

The other options imply various statuses that do not reflect the legal ramifications tied directly to the use of the Transaction Recovery Fund. A license being placed on inactive status or facing only suspension does not align with the established consequences in Virginia real estate law for receiving a payment from the fund. Therefore, automatic revocation is the correct legal outcome in this scenario.