Unit 1: Real Estate Education, Research, & Recovery Fund

Question 1

Who is the Real Estate Education, Research, & Recovery Fund (REERRF) administered by?

Answer 1

Commissioner of Commerce

Question 2

What is the recovery portion of the REERRF?

Answer 2

It is used to satisfy unpaid claims against real estate licensees.

Question 3

When must an application be made to recover unpaid claims?

Answer 3

Within 1 year of the final judgement against the licensee.

Question 4

T/F One claimant cannot be paid more than $150,000 out of the fund for a claim based on a single real estate transaction.

Answer 4

True

Question 5

T/F The recovery maximum per licensee, regardless of the number of claims, is $250,000.

Answer 5

True

Question 6

If a claim is paid out of the recovery fund, what happens to the license?

Answer 6

The licensee is suspended.

Question 7

How can a licensee be reinstated after suspension due to a recovery fund pay out?

Answer 7

They need to reimburse the fund 2x the amount paid out, plus 12% interest, and has obtained a $40,000 surety bond.