Sandra is a licensed Alabama salesperson who wants to file a claim against the Alabama Real Estate Recovery Fund after suffering financial harm caused by another licensee's fraudulent conduct. Which prerequisite must Sandra satisfy before the Recovery Fund will consider her claim?
Correct Answer
B) Sandra must first obtain a final court judgment against the licensee for the fraudulent conduct.
Alabama's Recovery Fund statute (Code of Alabama §34-27-31) requires that a claimant first obtain a final court judgment against the licensee before the Recovery Fund will consider paying a claim. The judgment establishes the legal basis and amount of the harm caused by the licensee's fraudulent or dishonest conduct. Without a court judgment, the claim cannot be processed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
More Practice Of Real Estate Questions
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