Alabama License LawIntermediateAlabama Exam
The Alabama Real Estate Recovery Fund provides compensation to:
ALicensed agents who lose money on transactions
BMembers of the public who suffer financial loss due to a licensee's fraudulent or dishonest actsCorrect
CBrokers whose offices are damaged by natural disasters, which is the approach most often followed
DBuyers who overpay for property
Why Members of the public who suffer financial loss due to a licensee's fraudulent or dishonest acts Is Correct
Answer B: Members of the public who suffer financial loss due to a licensee's fraudulent or dishonest acts
The Alabama Real Estate Recovery Fund compensates consumers who suffer actual financial losses caused by a licensee's fraudulent, dishonest, or negligent conduct. Recovery is subject to maximum limits per claim.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Math Concepts
State-Specific Concepts
License Law
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