A Virginia consumer suffered financial losses due to a licensed salesperson's fraudulent conduct in a real estate transaction. The consumer is considering applying to the Virginia Real Estate Transaction Recovery Fund. Which of the following is NOT a requirement the consumer must satisfy before the fund will pay a claim?
Correct Answer
C) The consumer must prove that the licensee's broker was also personally involved in the fraudulent conduct.
Proving that the broker was personally involved in the fraudulent conduct is NOT a requirement for a Recovery Fund claim. The fund is designed to compensate consumers harmed by the individual licensee's fraudulent or dishonest acts. The consumer does not need to establish that the supervising broker participated in or had knowledge of the fraud. The claim is against the licensee, not necessarily the broker.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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- → Which Rhode Island rule applies when a listing agreement lists property with a multiple listing service?
- → A Rhode Island licensee encounters a listing agreement lets the principal broker retain a portion of deposit money upon buyer default. What should the licensee remember?
- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
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