Indiana's real estate recovery fund provides:
Correct Answer
B) Compensation to consumers who have suffered financial loss due to a licensee's misconduct when the licensee is unable to pay a judgment
Indiana's real estate recovery fund (IC 25-34.1-8) compensates consumers who have obtained a court judgment against a licensee for real estate-related misconduct but cannot collect because the licensee is insolvent or otherwise unable to pay. The fund is supported by licensee fees. Importantly, recovery is subject to statutory caps: no more than $15,000 may be paid per transaction, and no more than $75,000 may be paid out against any single licensee over the lifetime of that licensee's career. A licensee whose conduct triggers a fund payment will have their license automatically suspended until the fund is repaid with interest.
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Related Topics & Key Terms
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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?
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In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
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