Arizona License Law
The Arizona Recovery Fund provides compensation to:
AReal estate licensees who are defrauded by clients
BMembers of the public who suffer financial harm from the fraudulent, negligent, or dishonest acts of a licensed real estate salesperson or broker, up to $30,000 per transaction✓ Correct
CThe ADRE for funding investigative costs
DUnlicensed persons who perform real estate services
Explanation
Arizona's Real Estate Recovery Fund compensates consumers (not licensees) who suffer actual financial losses due to fraudulent acts by real estate licensees when other remedies have been exhausted. The fund provides up to $30,000 per transaction (capped at $90,000 per licensee).
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Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
Math Concepts
State-Specific Concepts
DRE Regulation
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