How much of a license renewal fee goes towards the Connecticut Real Estate Guarantee Fund?
Audio Lesson
Duration: 2:13
Question & Answer
Review the question and all answer choices
$3.00
$10.00
Option B ($10.00) is incorrect as it overstates the contribution. This might represent confusion with other state fee structures or initial application fees.
$25.00
Option C ($25.00) is incorrect as it significantly exceeds the actual amount. This could result from misremembering fees for different types of licenses or services.
$50.00
Option D ($50.00) is incorrect as it's far higher than the actual contribution. This might reflect confusion with total renewal fees rather than the specific portion allocated to the fund.
Why is this correct?
CORRECT_ANSWER
Deep Analysis
AI-powered in-depth explanation of this concept
This question tests knowledge of license fee allocation in Connecticut, specifically how much of the renewal fee supports the Real Estate Guarantee Fund. Understanding this allocation matters because it reflects the regulatory structure designed to protect consumers. The core concept is that license fees fund various regulatory and protection mechanisms. To answer correctly, students must know that Connecticut specifically allocates $3 from each renewal fee to this fund, not the full amount. The question is challenging because many students might confuse renewal fees with initial application fees or assume a higher percentage goes to consumer protection. This connects to broader knowledge about real estate regulatory structures, how states fund consumer protection programs, and the importance of maintaining these funds for handling claims against licensees.
Knowledge Background
Essential context and foundational knowledge
The Connecticut Real Estate Guarantee Fund serves as a financial protection mechanism for consumers who suffer financial losses due to illegal, fraudulent, or dishonest acts by licensed real estate professionals. This fund is specifically created to compensate clients when a licensed agent violates real estate laws and causes monetary harm, particularly in situations where the licensee cannot provide restitution. The $3 allocation from each renewal fee represents a dedicated funding source to maintain this protection program, ensuring there are adequate resources to handle legitimate claims against licensees.
Picture three dollar bills ($3) being placed in a piggy bank labeled 'Guarantee Fund' every time you renew a license.
Visualize the three dollar bills going specifically into the guarantee fund during license renewal to remember the exact amount.
For questions about fee allocations, focus specifically on renewal fees rather than application fees. Remember that guarantee fund allocations are typically modest amounts, often just a few dollars per renewal.
Real World Application
How this concept applies in actual real estate practice
A Connecticut real estate agent, Sarah, is renewing her license for the third time. She notices that $3 of her renewal fee is designated for the Real Estate Guarantee Fund. A few months later, one of her former clients discovers that a previous agent misrepresented property details, causing financial loss. The client files a claim with the Real Estate Commission and receives compensation from the Guarantee Fund. Sarah understands that her small contribution to this fund helped protect a consumer and maintains the integrity of the real estate profession.
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