What background knowledge is needed for this Oh Division Of Re Rules Disciplinary Process question?

Ohio's Real Estate Recovery Fund was established under ORC §4735.12 as a consumer protection measure, funded by a portion of licensee fees. Recovery funds of this type became common across U.S. states in the mid-20th century after it became clear that many consumers defrauded by licensees had no practical recourse because individual agents lacked the assets to satisfy civil judgments. The specific dollar caps have been adjusted over time by the legislature to reflect inflation and the realities of real estate transaction values, though critics argue the current limits are modest relative to modern property prices.

What is a good way to remember the answer to this Oh Division Of Re Rules Disciplinary Process question?

Use the '20-40 Rule': '$20,000 per deal, $40,000 per licensee — double the deal cap is the licensee cap.' Visualize two $20 bills stacked (per transaction) and then imagine two stacks side by side equaling $40,000 (per licensee total). The number 40 is exactly double 20, making it easy to remember the relationship between the two caps.

What exam tip applies to this Oh Division Of Re Rules Disciplinary Process question?

Recovery Fund questions on the Ohio exam frequently test BOTH caps in the same question or use one as a distractor for the other. Read the question carefully: if it asks about 'a single transaction,' the answer is $20,000; if it asks about 'all claims against one licensee' or 'the maximum per licensee,' the answer is $40,000. The word 'aggregate' or 'regardless of the number of claims' is your signal that the $40,000 figure is being tested.

How does this Oh Division Of Re Rules Disciplinary Process concept apply in real world practice?

A Columbus property manager embezzles security deposits from 15 different tenants over two years, stealing amounts ranging from $1,500 to $8,000 per tenant. Several tenants successfully sue and obtain civil judgments but cannot collect because the manager has no assets. They each file claims against the Recovery Fund. The fund will pay a maximum of $20,000 per individual transaction claim, but the total paid out for ALL claims against this one licensee cannot exceed $40,000 — meaning if five tenants each have valid $20,000 claims, they must share the $40,000 pool proportionally.

Oh Division Of Re Rules Disciplinary ProcessDivision_rulesEASY

Under Ohio law, the Ohio Real Estate Recovery Fund has a maximum payout limit for claims arising from a single licensee's actions. This maximum is:

Correct Answer

C) $40,000 per licensee regardless of the number of claims

Under ORC §4735.12, the Ohio Real Estate Recovery Fund has a maximum aggregate payout of $40,000 per licensee for all claims combined. Individual claim payments are capped at $20,000 per transaction, and the total cannot exceed $40,000 per licensee.

Answer Options

$20,000 per transaction

There is no maximum; the fund pays all verified claims in full

$40,000 per licensee regardless of the number of claims

The maximum is determined on a case-by-case basis by the Superintendent

Why This Is the Correct Answer

Why the Other Options Are Wrong

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