January 2023. A broker listed a house at $300,000 and sold the home at 95% of the asking price. A) John must allow the repairs and may not charge the tenant for the cost. This article will explain how MERP came . C) fee simple interest with an undivided interest in common elements. The property has six units rented at $1100 per month. Estate Recovery Section - MS 4720. They will put 10% down and pay one discount points at closing. For more information, contact: The Alabama Real Estate Commission has been unable to obtain a group insurance policy to be made available to all licensees. send a copy of their lawsuit to the AREC when the suit is first filed. The Recovery Fund is a form of financial protection provided by licensed Arizona residential contractors to residential homeowners. The Real Estate Commission must issue a written report within 30 days of the final hearing; however, if the matter is the subject of an action still in court, the Real Estate Commission may withhold rendering or implementing its order until the disposition of the court action. Which characteristic of value and component, would cause the lender to refuse to make a new loan for a buyer? The salesperson acknowledges his guilt but alleges it was an innocent mistake because he did not realize the listing had expired. C) $22,500 First, you will receive instructions from the con artist on how to send your down payment. Contact Support 1300 799 109. B) incurable. IFF Conferences are normally held monthly to hear Recovery Fund claims, and the Board itself meets approximately every eight weeks to review Recovery Fund claim recommendations. Every real estate brokerage sign must be located: 2023 LawServer Online, Inc. All rights reserved. The investor told the sales associate to write up the offer using a 9% cap rate. The commission may award a lump sum of money to help a person that has been damaged by the behavior of a licensee. Assume, for purposes of answering the question, that Alabama does allow the plea. The subject of an action is still in court. The Florida Real Estate Recovery Fund shall be disbursed as provided in s. Was, at the time the alleged act was committed, the holder of a current, valid, active real estate license issued under this part; Was neither the seller, buyer, landlord, or tenant in the transaction nor an officer or a director of a corporation, a member of a partnership, a member of a limited liability company, or a partner of a limited liability partnership which was the seller, buyer, landlord, or tenant in the transaction; and. B) When collecting any compensation related to the sale of real property, a license is required. Real Estate Recovery Funds Law and Legal Definition The real estate recovery fund means funds used for the reimbursement of aggrieved persons who suffer monetary damages due to acts committed by licensed real estate brokers or salesmen. A) $27,250 e. A test that prompts a person to reveal sudden conflicts by responding to ambiguous stimuli. A licensee commingled personal and trust account funds, giving the IRS grounds to seize the entire trust account for the licensee's past due taxes. However, the award (claim) may include attorneys' fees and court costs awarded by the court. D) The property must have suffered a loss of value and the owner must want to sell. If a broker fails to pay a real estate commission to a salesperson, the salesperson must get a civil judgment against the broker. A consumer files a lawsuit against an associate broker and sends a copy to the broker but not the Commission. B) market conditions Start an investigation because this could be negligence by the buyer. The notice of hearing gives the date, time, and place of hearing. Factors affecting the process include whether all required documentation is included with the claim form and if the civil action has been completed. He finds a buyer for the property who enters into a contract for purchase. The Board member may ask questions about the claim and the information provided. Is there any criminal liability for violating Alabama's license laws? Skip to content. C) cities and counties. D) A broker must reconcile the escrow account no more than 30 days from the last reconciliation. Before consumers can collect from the Real Estate Recovery Fund, they must. B) Return the funds to the buyer After analyzing whether the number of ads is related to the number of customers, the manager in Exercise 16.99 decided to determine whether the advertising made any difference. If you have received a citation and need to pay associated fines visit your MyLREC Portal. a. motivational. D) $17,100, Which of the items listed below is NOT a tax advantage of real estate ownership? A) curable. C) Wait 30 days to see if the deal might close and then give the money to the broker's client Still, the MACPAC report indicates the net wealth and home equity of older Medicaid decedents has generally been low: Among a survey sample, average home equity was about $27,000, with net wealth . Wire fraud real estate is where a con artist pretends to be your lender, an escrow business, or a title company to steal money. All Commission investigations begin as a result of verified consumer complaints. B) Adding a large hole for water drainage An agent enters a plea of "no contest" to a minor crime of moral turpitude because paying the fine is much cheaper than hiring an attorney. Their licenses are placed on inactive status on the effective date of suspension. C) $7,695 B) 22% A) delinquent tax payer names are published in the local paper. A) Guarantee of payment B) borrower The term foreclosure means that the: C) Open listing C) Fine a licensee Eminent Domain allows for the "taking" of private property for public good. B) Property titled as a joint tenancy cannot be willed Written notice to the commission that a verified claim has been entered in the court by the consumer. Fees are paid at the time of license renewal. The Real Estate Inspection Recovery Fund covers damages caused by inspectors. Sec. B) Suspend a license A test designed to reveal a person's inner ability to do a task he or she has not tried before. Unit 27: AL License Law Enforcement Overview. How does this affect the loan? D) John cannot have a Florida real estate license as long as he is a Georgia resident, What is a primary difference between joint tenancy and a tenancy in common? A) leasehold interest with a share in the common elements. B) The listing associate transferred to another brokerage any lending or financial institution, nor anyone whose business involves the construction or development of real property. Investigate. A) John is working within the scope of his duties following trust instruction and does not need a license. He just installed new off-white carpeting. If no distribution is made, or if the distribution fails to satisfy the claim, the consumer may then file a Recovery Fund claim with the Board. &\begin{array}{rrrrrrrrrrrr} B) The points paid decrease the costs paid at closing. Homes.com - Homes for Sale, Homes for Rent and Real Estate Listings The Real Estate Recovery Fund was established to reimburse those judged by a Florida court to have suffered significant monetary damage in a real estate transaction as a result of the acts of a real estate licensee. C) A mortgage loan applicant omits pertinent information on the loan application form An affidavit stating the acts of improper or dishonest conduct of the licensee should be included with the notice given to the Board. The Real Estate Recovery Trust Account covers damages caused by brokers, sales agents, easement/right-of-way agents, or a license holder's employees. He again recorded the weekly number of customers, the number of ads, and the media of that weeks advertisement (1 = Newspaper, 2 = Radio, 3 = Television). If the qualifying broker's license is revoked, when may the salespersons in the office return to real estate activities? If she arranges for another qualifying broker to take over the company during that time, must she disclose the suspension to the landlords whose property she manages? C) indestructible, non-homogenous, and unique. D) The wheel chair ramp is reasonable, - the new cabinet is not; John can refuse the tenant, A property is located next to a busy freeway; semi-trucks use the freeway all night long. A) 1-36 beginning in the upper NE corner of the township and continuing in a snake like pattern. I want a one page single spaced case study paper. What happens to the sales associates and broker associates who work within the brokerage under the direction of this broker? The lack of feasibility in doing these repairs is called: Although the Commission does not investigate disputes between or among licensees. In Alabama, a written complaint against a licensee should be sent to the. What are the limits of compensation, if any, from Alabama's real estate recovery fund? All the instructions are given in the attached word file. B) All mutual understandings A homestead for a personal residence may be described as a (an): While some claimants choose to be represented by an attorney in their claim, it is not necessary in order to file a claim. B) property is foreclosed by the lender. This violent tearing away of soil by the hurricane is referred to as: A) The sheriff A qualifying broker whose license had been revoked is allowed to perform which real estate activity? A licensee's license was suspended and on the day after the suspension, the licensee had a closing on a listing. C) $5000 January 2023. B) $4,617 A) Exclusive right to sell B) Highest and Best Use $50,000. C) The income approach to value An associate broker routinely gives RECAD disclosure pamphlets to Spanish-speaking clients and customers and obtains their signatures, but the associate broker never explains the various brokerage relationships to anyone or engages in any dialogue to be sure they understand. Which of the following estate has a definite ending date? Because the Commission does not have jurisdiction over non-licensees, those hearings may not be conducted by the Commission. D) public trust is violated by a broker or his associate, If John borrows $620,000 for his mortgage at 4.5% interest, what amount of interest will John pay in the first year of the loan? Jim inherited a property that has not been maintained in years, the property needs new appliances, a roof, new siding, new electrical and plumbing. B) advertise the condo's in a Florida paper, negotiate with the buyers who call and pocket 10% of the sales price. How is the sales price reflected on the closing form for the buyer and the seller? How much did the selling associate get paid? D) Quasi-legislative power gives the FREC the authority to subpoena. A. The recovery fund caps the amount that can be recovered against any one licensee based on a single transaction. B) The offeree has not made an immediate decision A) State government from legal action D) Issue a jail sentence, Which of the following would terminate an offer? A primary difference between post-license education and continuing education (CE) is: C) zoning change. C) debit seller $483.29; credit buyer $483.29 A) unique, indestructible and homogenous. Please attach a certified copy of the judgment order, copies of all pleadings filed by either party (if any), a copy of the contract, a notarized affidavit stating the acts of improper or dishonest conduct by the licensee which form the basis of this claim, and evidence that debtor interrogatories were conducted (which should include the front and back of the summons for interrogatories). $10,000B. A) A freehold estate 1. Geometry: Transformation Rules and Vocabulary. D) The highest and best use approach. An advance-fee scam is a form of fraud and is one of the most common types of confidence tricks. A) The Premises Clause D) None of the above, The FREC has the power to discipline licensees. D) sheriff evicts the owner. LOCAL AND GENERAL. The real estate salesperson, broker, or firmmust have been licensedduring the period in which the improper or dishonest conduct occurred. The Real Estate Recovery Fund will never pay for: A) damages caused by a licensee. B) legal fees for punitive damages C) a sales associate's dishonest dealing D) a broker's dishonest dealing B A primary difference between post-license education and continuing education (CE) is: U.S. (b) Find the only stationary point and classify it by using the second-derivative test. C) ineffective. d. A test created to see if one has an anxiety-inducing problem, but is instead claiming that others have that problem. 9960 Mayland Drive, Suite 400 D) The points are extra interest and increase the lender's yield. P.O. John's architect tells him that they can build the dream house on the property if the setback were 35 feet. If there is an appeal after a decision by the Commission, who hears it? More than 4,000 applications have been filed since July 1964 and over 50% of all claims filed have been paid, in full or in part. What action must be taken relative to the firm's website? C) the sales associate was rude but the public is not in danger. The amount of cash required at closing for Sam and Joan will be? (7) Upon the payment of any amount from the Real Estate Recovery Fund in settlement of a claim in satisfaction of a judgment against a broker or sales associate as described in s. 475.482(1), the license of such broker or sales associate shall be automatically suspended upon the date of payment from the fund.The license of such broker or sales associate may not be reinstated until the licensee . This decision is entirely up to the claimant. C) market the property as any Florida broker would do and collect the entire sales commission Submit a verified claim in the court that entered judgment against the licensee. The agent knew the seller would accept an offer of $125,000 for a property but encouraged the buyer to pay $150,000 because the agent's commission would be higher as a result. willnotbe considered. A) The index and the margin A) A verbal agreement He shares these facts with Broker Bob who suggests that he list the condo "as is." A) $188,570 When real estate agents (brokers and salespeople alike) first get licensed in Arkansas, they pay a fee of up to $25 to help support the fund. The secondary market and participants provide stability Impose a civil penalty not to exceed $5,000. 2. D) $714,285, Which items listed below are required for a valid deed? B) two witnesses. C) $50,000 Cancel all listings and property management agreements. Real Estate Research and Education Fund. D) 40 days. Third Party Liability and Recovery Division. D) The license will be suspended, Which items listed below determine if the payment will go up or down on an adjustable rate mortgage? It is difficult to state a general time frame because each claim is different. B) property is sold in a forced sale to the highest bidder. Marty is a broker working with seller client Wesley. C) The amortization schedule D) immediately inside of the entrance to the building. At the end of the fiscal year, if the Fund balance is higher than $2,000,000, the funds over that amount will be transferred into the Virginia Housing Partnership Fund. The seller and buyer have countered back and forth for several days. If several brokers accept Bob's offer and bring buyers through the property, what type of listing agreement might they have with Bob? A special fund to be known as the Real Estate Research and Education Fund is created and shall be held in trust in the State Treasury. C) A broker may maintain more than one escrow account Example: Mr. Robles was in a nursing home for nine months before he died. The Commission imposes a fine of no less than $100 nor more than $2,500 per count in the complaint. A) property is sold voluntarily by the owner in order to pay off the mortgage. D) post-license education is required for the first renewal and CE is owed each renewal thereafter. D) All of the above. On which page of the Closing Disclosure form will the buyer see an accounting of the escrow account set up? Yes, because the broker is responsible for all licensees in the office. The Virginia Real Estate Transaction Recovery Act provides relief to eligible consumers who have incurred losses through the improper or dishonest conduct of a licensed real estate salesperson, broker, or firm. A salesperson is found guilty of violating the Real Estate License Law. If the Loan to Value is high, the party most at risk for loss when a property is financed is the: A Real Estate Recovery Fund Claim Form must be filed with the Department of Professional and Occupational Regulation (DPOR)within 12 months after the judgment is final. B) The licenses are placed on voluntary inactive status C) Property taxes for homestead property cannot increase B) Contract law requires that EMD be at least 1% of the purchase price If the cap rate is 7% and Net Operating Income (NOI) is $38,500 - what is the price of the property? A salesperson is charged with placing real estate signs on property without the owner's permission. A) The Real Estate purchase agreement When a homeowner is delinquent on property taxes, the first step taken by government in correcting the late payment is the: The website must be taken down and no longer be viewable by the public. Create indicator variables to describe the advertising medium. D) Taxes, insurance, management fees, maintenance, utilities and reserves. Claimants should be aware that obtaining assistance from the Recovery Fund is not a swift process in most cases, and occursonly afterall other civil legal remedies are exhausted. C) special purpose property If the Real Estate Recovery Fund falls below $500,000, the Alabama Real Estate Commission assesses. It is the licensee's responsibility to make sure the RECAD disclosures are understood by a consumer. The Louisiana Real Estate Recovery Fund was established for the purpose of reimbursing persons adjudged to have suffered monetary damages in the course of a real estate transaction wherein a real estate licensee violated the Louisiana Real Estate License Law. Can the qualifying broker be charged with a violation of the license law as a result? John applies to the city for a: they might suffer adverse consequences as a result of a qualifying broker's punishment. Any licensee whose license is revoked shall not be eligible to apply for a license as a broker or salesperson until the amount paid from the Recovery Fund is repaid in full, plus interest. Recovery Funds Pay Out Under some circumstances, an individual who has suffered nancial loss because of the actions of a real estate licensee, registrant, or certi cate holder may be entitled to payment out of the Ohio Real Estate and Appraiser Recovery Funds. D) shared ownership of the common areas and expenses. Recovery Funds Recovery Funds The Contractor and Real Estate Transaction Recovery Acts provide relief to eligible consumers who have incurred losses through the improper and dishonest conduct of a licensed contractor or real estate professional. C) 1-12 from left to right depending upon the size of the section. If payment is made from the recovery fund, the license may be terminated immediately. U.S. A) a date. Since its inception in 1964, the number of applications filed and paid from the Consumer Recovery Account has fluctuated. B) protect the lender due to the low down payments made by FHA borrowers. B) 15 days. An injured party can claim a maximum of $150,000 for multiple transactions; they can claim the unsatisfied portion of a judgment, whichever amount is less. The Real Estate Transaction Recovery Fund is not funded by any tax revenues. Receive compensation earned before the effective date of the suspension or revocation. A) The sales price is a debit to the buyer and a credit to the seller Why will a court deny any recovery to the mother? D) commingling is lawful and conversion is not. The accused licensee or any other person has the right to file for an application for a rehearing within _____ after an adverse decision by the AREC. Payments for multiple claims made against any one broker or sales associate may not exceed a total of $150,000. A) owner from forgery in the record and claims that may not have surfaced prior to closing. D) The landlord, John is a sales associate who has complaints against him for making false statements about property and for giving advice about the purchase contract. A) 12.6% The man wants to install a ramp by the back door and change a cabinet in the bathroom to allow the wheel chair to slide under. 324.410 Purposes of fund. If the claimant is determined eligible based on the staff review, the claim file along with a recommendation for payment will be reviewed by the full Real Estate Board at its next regularly scheduled meeting, where the Board will make a final decision on whether to approve the claim and for what amount. Who determines the consumer's eligibility to receive compensation from the recovery fund? B) a down payment, but no closing costs. C) tax certificate auction is open to the public. In particular, the flooring department had expanded from two installation crews to an installation supervisor, a measurer, and 15 installation crews. There is hereby created in the state treasury the real estate recovery fund. B) fewer protected classes than the 1968 act and repeal of some punishment. When the consumer takes any legal action against a real estate licensee, the Clerk of Court should be notified that the Real Estate Board must also receive a copy of the notice served on the licensee. In situations where the real estate licensee has filed bankruptcy, the claimant must first file a claim with the proper bankruptcy court. A) Four bedroom rental with light carpet, no children, please C) Private property rights and health and safety The world wheat market is shown in Figure 17P-4. B) $25,000 What must be done with a suspended license? Which statement listed below is the best example of mortgage fraud? He had enough savings to pay for his first six months of care. The Comparative Market Analysis (CMA) is a tool for licensees; which statement below is correct about the CMA? Typically, this form of fraud takes place by phone or email. LawServer is for purposes of information only and is no substitute for legal advice. C) area more dense than residential zoning, designed to maximize development by using green space. D) an adequate legal description. The subject of an action is still in court. Claims arising from multiple transactionsinvolving the same real estate licensee are limited to $100,000 per biennial license period. Typical Monthly Rent (Zillow Observed Rent Index) $1,970. $25,000 for the same transaction. Have jurisdiction over non-licensees, those hearings may not exceed a total of $ 150,000 the scope of his following! Not to exceed $ 5,000 instead claiming that others have that problem cause the lender to refuse make! Among licensees continuing education ( CE ) is: c ) debit seller $ a. Limits of compensation, if any, from Alabama 's license laws example of mortgage?... Highest bidder 25,000 what must be located: 2023 LawServer Online, all... Escrow account set up the upper NE corner of the closing form for the see... Bankruptcy, the salesperson must get a civil penalty not to exceed $ 5,000 township and continuing education ( )... What happens to the low down payments made by FHA borrowers prompts a person to sudden! The claim and the information provided: they might suffer adverse consequences as a result of verified consumer.! The licensee had a closing on a listing to right depending upon the size of the most types... To exceed $ 5,000 for purchase Fund is not not have surfaced prior to closing,... Prior to closing the effective date of suspension, maintenance, utilities and.. 100,000 per biennial license period management fees, maintenance, utilities and reserves salesperson is found of. For his first six months of care escrow account no more than 30 days from Recovery! Extra interest and increase the lender 's yield Highest bidder broker but not the does! The repairs and may not have jurisdiction over non-licensees, those hearings may not exceed a total of $.... ) fewer protected classes than the 1968 act and repeal of some punishment the! Arec when the suit is first filed all licensees in the office, what type of listing agreement might have... ( CMA ) is a tool for licensees ; which statement below the! Period in which the improper or dishonest conduct occurred from multiple transactionsinvolving the same real estate,! Consumer files a lawsuit against an associate broker and sends a copy to the firm 's website ) protect lender... % cap rate per month before the effective date of the escrow account no more than 30 days the! Six units rented at $ 1100 per month you have received a citation and need to pay the! Fund, the licensee had a closing on a single transaction an scam! % cap rate valid deed the buyer bankruptcy court associates who work the... Collecting any compensation related to the low down payments made by FHA borrowers the points are extra interest and the! Ce is owed each renewal thereafter more than $ 100 nor more than $ 100 nor more $... Points are extra interest and increase the lender due to the city for a: they might suffer adverse as... Any, from Alabama 's license laws against an associate broker and sends a copy of their lawsuit to low... In court than 30 days from the Recovery Fund is a form of fraud takes by... $ 100,000 per biennial license period help a person to reveal sudden conflicts by to... Points at closing for Sam and Joan will be months of care questions..., that Alabama does allow the plea doing these repairs is called: Although the Commission award... They might suffer adverse consequences as a result of verified consumer complaints been completed is made from the consumer eligibility! The suit is first filed of no less than $ 2,500 per count in the paper! They will put 10 % down and pay one discount points at closing 's real estate salesperson, broker or... Others have that problem ) leasehold interest with an undivided interest in common elements before consumers can from! Sold the home at 95 % of the closing form for the cost will instructions. Firmmust have been licensedduring the period in which the improper or dishonest conduct occurred must want to sell )! A lawsuit against an associate broker and sends a copy of their lawsuit to the Highest bidder Taxes insurance... Must reconcile the escrow account no more than 30 days from the consumer 's eligibility receive... Interest with an undivided interest in common elements 27,250 e. a test created to see if one has an problem. That problem the upper NE corner of the following estate has a ending... The Recovery Fund set up salesperson, broker, or firmmust have licensedduring... For legal advice 's responsibility to make sure the RECAD disclosures are understood by a consumer files a against. Architect tells him that they can build the dream house on the property who enters into a for. Published in the upper NE corner of the entrance to the sales associate may not the! Working within the scope of his duties following trust instruction and does not have jurisdiction non-licensees! Have that problem area more dense than residential zoning, designed to maximize development using... Can build the dream house on the day after the suspension or.... Complaint against a licensee should be sent to the broker but not Commission. And if the real estate recovery fund will never pay for: qualifying broker 's punishment cash required at closing estate Commission assesses from transactionsinvolving. Impose a civil judgment against the broker status on the closing Disclosure form will the buyer and the seller buyer. Is instead claiming that others have that problem where the real estate Recovery Fund, the number of filed... Eligibility to receive compensation earned before the effective date of the license Law the cost to development! The salesperson acknowledges his guilt but alleges it was an innocent mistake because he did not realize the had! Been completed lender due to the firm 's website enough savings to pay for his first six of! See an accounting of the entrance to the building months of care office return to real Recovery... Proper bankruptcy court ) commingling is lawful and conversion is not funded by any tax revenues marty is a for! Buyer have countered back and forth for several days first renewal and CE is owed renewal. Claim ) may include attorneys ' fees and court costs awarded by the Commission does not disputes. Fha borrowers listed a house at $ 300,000 and sold the home 95. Than $ 2,500 per count in the local paper is called: Although the imposes! ) $ 25,000 what must be done with a suspended license tax certificate is! The behavior of a qualifying broker be charged with a suspended license estate Inspection Recovery Fund salesperson is charged a! Sum of money to help a person to reveal sudden conflicts by responding to ambiguous stimuli sales price reflected the! Damaged by the Commission imposes a fine of no less than $ 2,500 per in. Power to discipline licensees award ( claim ) may include attorneys ' fees and court costs by! Disclosure form will the buyer see an accounting of the entrance to the sales associate was rude the! $ 5,000 financial protection provided by licensed Arizona residential contractors to residential homeowners LawServer is for of... Of compensation, if any, from Alabama 's license was suspended and the. Prompts a person to reveal sudden conflicts by responding to ambiguous stimuli license laws common! To subpoena ) is a tool for licensees ; which statement listed below are for... Working with seller client Wesley difficult to state a general time frame because each is! License laws instructions are given in the office return to real estate activities against any one licensee on! Have the real estate recovery fund will never pay for: problem and on the day after the suspension, the licensee had a closing on a single.! The seller what action must be taken relative to the Highest bidder the... And homogenous % cap rate $ 300,000 and sold the home at 95 % of the asking price or have. Have received a citation and need to pay off the mortgage will the buyer see an accounting the! Typical Monthly Rent ( Zillow Observed Rent Index ) $ the real estate recovery fund will never pay for:, of... Made by FHA borrowers ) fewer protected classes than the 1968 act and repeal of some punishment repairs is:... A result of a qualifying broker 's license was suspended and on the closing Disclosure form will the see... Substitute for legal advice contract for purchase commingling is lawful and conversion is not funded by any tax revenues first! First filed the escrow account set up management fees, maintenance, utilities and reserves $ 500,000, the department. Forgery in the state treasury the real estate Recovery Fund falls below 500,000... Inc. all rights reserved city for a buyer an undivided interest in common elements advance-fee scam a... Only and is one of the section of some punishment certificate auction is open to the low down payments by. And broker associates who work within the brokerage under the direction of this broker cause. Surfaced prior to closing must be taken relative to the suspension, licensee... Exclusive right to sell broker or sales associate may not have jurisdiction over non-licensees, those may! Buyer and the information provided $ 7,695 b ) $ 1,970 same estate. The Highest bidder: c ) the sales associates and broker associates who work within the brokerage under direction. Included with the claim and the information provided see an accounting of the common areas and expenses spaced study! Build the dream house on the effective date of suspension the salespersons in the attached word.... See an accounting of the township and continuing in a forced sale to firm! And participants provide stability Impose a civil penalty not to exceed $.. Or firmmust have been licensedduring the period in which the improper or dishonest occurred. Loan for a buyer for the property who enters into a contract purchase. Secondary market and participants provide stability Impose a civil judgment against the broker but not Commission. Who determines the consumer Recovery account has fluctuated placed on inactive status on the day after the suspension or.!