Arizona License LawIntermediateArizona Exam
Which of the following statements about the Arizona Real Estate Recovery Fund is TRUE?
AIt covers any financial loss a client suffers from a broker's embezzlement or unauthorized use of trust funds
BIt only covers residential transactions
CIt requires the claimant to first obtain an uncollectible court judgment against the licenseeCorrect
DIt is funded through federal appropriations under the National Housing Act
Why It requires the claimant to first obtain an uncollectible court judgment against the licensee Is Correct
Answer C: It requires the claimant to first obtain an uncollectible court judgment against the licensee
To claim from the Recovery Fund, a claimant must have obtained a court judgment against the licensee for a real estate violation and must demonstrate the judgment is uncollectible before the Fund will pay.
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