§ 10475

Should the commissioner pay from the Consumer Recovery Account any amount in settlement of a claim or toward satisfaction of a judgment against a licensed broker or salesperson or a person holding a prepaid rental listing service license, the license of the broker or salesperson or prepaid rental listing service licensee shall be automatically suspended upon the date of payment from the Consumer Recovery Account if the final judgment was established by proof by clear and convincing evidence or the commissioner determined that the claimant provided clear and convincing evidence of the fraud, misrepresentation, deceit, or conversion of trust funds. No broker or salesperson or prepaid rental listing service licensee shall be granted reinstatement until they have repaid in full, plus interest at the prevailing legal rate applicable to a judgment rendered in any court of this state, the amount paid from the Consumer Recovery Account on their account. A discharge in bankruptcy shall not relieve a person from the penalties and disabilities provided in this chapter.

(Amended by Stats. 2025, Ch. 786, Sec. 30. (SB 774) Effective January 1, 2026.)