Maximum from Maryland Guarantee Fund per transaction is:
Question & Answer
Review the question and all answer choices
$100,000
$100,000 exceeds Maryland's actual guarantee fund limit. This option might represent a candidate's confusion with another state's limit or an outdated provision. Maryland's maximum is specifically set at $50,000 per transaction, not $100,000.
$50,000
$25,000
$25,000 is below Maryland's actual guarantee fund limit. This amount might represent a candidate confusing Maryland's limit with that of another state or with a different type of recovery fund that has a lower maximum.
$10,000
$10,000 is significantly below Maryland's actual guarantee fund limit and represents a misunderstanding of the protection available. This amount is more typical of deductibles rather than maximum recoveries from state guarantee funds.
Why is this correct?
The Maryland Guarantee Fund provides a maximum recovery of $50,000 per transaction. This amount is established by state law to balance consumer protection with the financial sustainability of the fund. This limit applies to claims arising from a single real estate transaction where a licensed agent's illegal or fraudulent conduct causes financial loss to a client.
Continue Learning
Explore this topic in different formats
More Practice of Real Estate Videos
Continue learning with related video lessons
What is the max civil penalty per violation in Minnesota?
2:52 • 0 views
If an auditor visits a broker's office in Ohio, how many years of records are required?
2:47 • 0 views
Is commingling legal in Mississippi?
2:50 • 0 views
Utah license law has three levels of licensure. What are they?
2:03 • 0 views
Georgia has real estate license reciprocity agreements with which states?
2:44 • 0 views
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.