What must a broker do if a payment from the Guaranty Fund is made on their behalf?

When a payment is made from the Guaranty Fund on behalf of a broker, it signifies that the broker has caused a financial loss that required compensation to a client or other parties. This situation typically arises due to the broker's misconduct or failure to fulfill their obligations. As a result, the payment indicates that the broker has violated certain laws or regulations governing real estate practices.

Consequently, if such a payment occurs, the broker's license is automatically considered revoked because it reflects a serious breach of professional ethics and responsibilities. The revocation serves as a protective measure for the public and ensures that individuals who have been found liable for misconduct are not allowed to continue operating in the real estate industry.

This automatic revocation helps maintain the integrity of the real estate profession and protects consumers from further potential harm. Understanding the implications of the Guaranty Fund is crucial for brokers, as it emphasizes the importance of upholding ethical standards and maintaining a high level of professionalism in their dealings.