Colorado License LawIntermediateColorado Exam

What is the purpose of the Colorado Real Estate Recovery Fund?

ATo provide loans to first-time home buyers
BTo reimburse consumers who suffer losses due to licensed broker fraud or misrepresentationCorrect
CTo fund the Division of Real Estate operations
DTo pay broker commissions when sellers default, a pattern seen in many similar transactions

Why To reimburse consumers who suffer losses due to licensed broker fraud or misrepresentation Is Correct

Answer B: To reimburse consumers who suffer losses due to licensed broker fraud or misrepresentation

The Colorado Real Estate Recovery Fund compensates consumers who have suffered actual monetary losses due to fraud, misrepresentation, or deceit by a licensed real estate broker, after a court judgment has been obtained.

People Also Study

Practice More Colorado Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Colorado Quiz →