A consumer suffered financial harm of $200,000 due to the fraudulent conduct of Alabama licensee Victor across two separate real estate transactions ($100,000 per transaction). The consumer obtained court judgments for both transactions and filed claims against the Alabama Real Estate Recovery Fund. What is the maximum total amount the consumer can recover from the Recovery Fund across both transactions?
Correct Answer
A) $100,000 total, because each transaction is capped at $50,000
Under Code of Alabama §34-27-31, the Recovery Fund caps recovery at $50,000 per transaction. With two separate transactions each resulting in $100,000 in harm, the consumer can recover a maximum of $50,000 per transaction, for a total of $100,000. This is subject to the $150,000 per-licensee lifetime cap, which is not exceeded here. The per-transaction cap of $50,000 is the binding limit for each individual claim.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
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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