Michael is a Virginia-licensed salesperson who recently had his license revoked by the VREB for fraudulent conduct. A former client, Diana, obtained a $40,000 civil judgment against Michael but was unable to collect because Michael has no assets. Diana applies to the Virginia Real Estate Transaction Recovery Fund. Which of the following statements is MOST accurate regarding Diana's claim?
Correct Answer
B) Diana is eligible to apply, but the fund has per-transaction and per-licensee payment caps that may limit her recovery
Under Va. Code § 54.1-2112 et seq., the Virginia Real Estate Transaction Recovery Fund pays eligible claimants who have obtained a final civil judgment against a licensee for fraudulent or dishonest conduct. However, the fund imposes statutory caps on payments — both per transaction and per licensee — meaning Diana may not recover the full $40,000 if her claim exceeds those limits. The fund is a last-resort remedy, and payment from the fund triggers automatic license revocation (which has already occurred here).
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
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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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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- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
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