A portion of agency fees goes to Ohio's recovery fund - how much?
Correct Answer
B) $10.00
$10 goes to the recovery fund.
Why This Is the Correct Answer
B is correct because Ohio law specifically mandates that $10 from each real estate transaction fee be allocated to the recovery fund. This is a fixed amount established by the Ohio Division of Real Estate & Professional Licensing to ensure adequate funding for consumer protection.
Why the Other Options Are Wrong
Option A: $5.00
Option A ($5.00) is incorrect because Ohio's recovery fund specifically requires a $10.00 contribution from each real estate transaction fee. This amount is mandated by state law and is not variable or adjustable. The $5.00 figure represents either an outdated fee or a misunderstanding of the current requirement, making it an incorrect choice for the Ohio recovery fund contribution.
Option C: $20.00
C is incorrect because $20 is not the mandated amount for Ohio's recovery fund contribution. This option may represent a different state's requirement or a fee for another regulatory purpose.
Option D: $100.00
D is incorrect because $100 is far higher than Ohio's actual recovery fund contribution. This amount might be confused with license renewal fees or errors and omissions insurance premiums.
Deep Analysis of This Practice Of Real Estate Question
This question tests knowledge of Ohio's real estate recovery fund contribution, which is a critical regulatory requirement for all licensed real estate professionals. Understanding this concept matters because it demonstrates knowledge of the financial obligations that come with maintaining a real estate license. The question specifically asks about the portion of agency fees allocated to Ohio's recovery fund. The correct answer is $10.00, which represents the mandatory contribution from each real estate transaction fee. This fund serves as a safety net for consumers who suffer financial harm due to licensed agents' illegal, fraudulent, or dishonest acts. The question is challenging because it requires memorization of a specific dollar amount that isn't logically derived from other concepts. It tests whether students have committed to memory the specific regulatory requirements of Ohio's real estate commission. This connects to broader real estate knowledge about state-specific regulations, license requirements, and consumer protection mechanisms.
Background Knowledge for Practice Of Real Estate
The real estate recovery fund is a consumer protection mechanism established by state licensing authorities. In Ohio, this fund provides financial compensation to consumers who suffer monetary losses due to illegal, fraudulent, or dishonest acts by licensed real estate professionals. The $10 contribution per transaction is mandated by Ohio law and helps ensure the fund remains adequately capitalized to protect consumers. Most states have similar recovery funds, though the contribution amounts vary by state. This fund is separate from errors and omissions insurance and serves as a last resort when other remedies are insufficient.
Memory Technique
rhymeTen bucks to Ohio, no more, no less, keeps consumers safe from distress.
Recite this rhyme when encountering questions about Ohio's recovery fund to remember the exact $10 contribution amount.
Exam Tip for Practice Of Real Estate
For questions about state-specific fees, memorize the exact amounts for your state. Ohio's recovery fund contribution is $10 - a fixed amount that doesn't change with transaction value.
Real World Application in Practice Of Real Estate
A buyer, Sarah, discovers that her real estate agent misrepresented the property's condition, leading to $15,000 in unexpected repairs. After exhausting all other options, Sarah files a claim with Ohio's recovery fund. The fund approves her claim and compensates her for her losses. This compensation was made possible by the mandatory $10 contributions from thousands of real estate transactions across Ohio, demonstrating how this small per-transaction fee collectively protects consumers from agent misconduct.
Common Mistakes to Avoid on Practice Of Real Estate Questions
- •Confusing the recovery fund contribution with other required fees such as license renewal fees or E&O premiums
- •Mixing up Ohio's specific $10 requirement with other states' different contribution amounts
- •Failing to recognize that this is a per-transaction fee, not a one-time license fee
- •Confusing the recovery fund with the real estate commission's general operating budget
Related Topics & Key Terms
Related Topics:
Key Terms:
More Practice Of Real Estate Questions
For a month-to-month tenancy to be legally valid, which must the contract include?
A landlord must give a month-to-month tenant how many days' notice to terminate the tenancy in California (for tenancies less than one year)?
In NYC, a security deposit for residential rentals cannot exceed:
Arizona landlords must return security deposits within:
Is commingling legal in Illinois?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam