Arizona License LawIntermediateArizona Exam

The Arizona Recovery Fund provides compensation to:

AReal estate licensees who suffer financial losses when a client refuses to pay the earned commission after a transaction closes, up to the full amount of the unpaid commission

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 transactionCorrect

CThe ADRE to fund the cost of investigating licensee misconduct complaints and conducting formal administrative disciplinary hearings and appeals proceedings

DIndividuals who provided real estate brokerage services without a license and were never paid by the property owner for work performed in connection with the transaction

Why Members 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 Is Correct

Answer B: Members 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

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).

Key Arizona License Law Terms in This Question

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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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.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Eminent Domain

The power of government to take private property for public use, with the requirement to pay the owner just compensation.

Math Concepts

Profit & Loss

State-Specific Concepts

DRE Regulation

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