A consumer named Patricia obtained a court judgment against a licensed Alabama real estate salesperson, Robert, for $75,000 due to Robert's fraudulent conduct in a single real estate transaction. Patricia applies to the Alabama Real Estate Recovery Fund for compensation. What is the maximum amount Patricia can recover from the Recovery Fund for this single transaction?
Correct Answer
D) $50,000
Under Code of Alabama §34-27-31, the Alabama Real Estate Recovery Fund caps compensation at $50,000 per transaction, regardless of the actual judgment amount. Although Patricia's court judgment was for $75,000, the Recovery Fund will only pay a maximum of $50,000 for a single transaction. The $150,000 figure represents the lifetime cap per licensee, not the per-transaction limit.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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