State Topic Tester- VA Transaction Recovery Fund Flashcards

State Topic Tester- VA Transaction Recovery Fund Flashcards Claims for payment from the Transaction Recovery Fund

are filed with the:

(virginia transaction recovery fund) Claims are submitted to the Real Estate Board, but a claimant is only eligible for payment after she has exhausted all other legal avenues for recovery through the court system.The correct answer

is: Real Estate Board

The purpose of the Transaction Recovery Fund is to:(virginia transaction recovery fund) The law and regulations are silent on the actual purpose of the Transaction Recovery Fund. However, the Act does state that when a person receives an award for damages as a result of a licensee's improper or dishonest dealing, a consumer may file a claim for recovery of such losses. After proper investigation, the Board may authorize a payment from the Transaction Recovery Fund in order to offset the losses

sustained.The correct answer is: Reimburse financial

losses caused by licensee misconduct When a claim is paid from the Transaction Recovery fund, which of the following statements is true?(virginia transaction recovery fund) Once a claim is paid, the claimant subrogates his rights to the Board in order to allow for collection from the licensee. You may file a claim for as much as you want, but $20,000 is the most one person can collect. If multiple parties file against a licensee in a single transaction, their collective claims may not

exceed $50,000.The correct answer is: The claimant

assigns his rights to the Board, to the extent of the amount of money paid by the Fund If the Board has authorized payment from the Transaction Recovery Fund, what is the effect for the licensee who committed the misconduct?(virginia transaction recovery fund) Once a payment is made from the Fund, the person's license is revoked

without benefit of a hearing.The correct answer is: The

license will be automatically revoked A real estate license could be suspended without

investigation if the licensee:

(virginia transaction recovery fund) The only instance where your license can be suspended or revoked without a hearing is in relation to the Transaction Recovery Fund.Specifically, a license will be suspended if you fail to pay your assessment, and it will be revoked if you cause

payment from the Fund.The correct answer is: Does not

pay the Transaction Recovery Fund assessment Which of the following persons could file a claim for payment from the Transaction Recovery Fund?(virginia transaction recovery fund) This is a trick question.All the listed persons COULD FILE a claim, but none would be able to collect. When a claim is filed, the first step is to determine whether the claimant is eligible to receive payment from the Fund. Remember that consumers are the only ones eligible to collect under the Act, and only if they

have been injured by a real estate licensee.The correct

answer is: All of the above

If the Transaction Recovery Fund falls below a statutory minimum, licensees may be assessed to restore the Fund.What is the maximum that one licensee may be assessed during a two-year period?(virginia transaction recovery fund) If the TRF Funds falls below the statutory minimum, the Board may re-assess licensees for no more than $20 within a two year

period.The correct answer is: $20

Which of the following statements is true if a broker has repaid the amounts awarded from the Transaction Recovery Fund?(virginia transaction recovery fund) The Real Estate Board has the right to refuse issuance of a license to any person who has EVER had his license suspended or revoked.When a claim is paid, the broker's license is automatically revoked by law. The fact that the broker repaid the fund is

immaterial.The correct answer is: The Real Estate Board

could withhold issuance of a new license, forever The minimum balance of the Virginia Real Estate

Transaction Recovery Fund is:

(virginia transaction recovery fund) The minimum balance of the Transaction Recovery Fund is $400,000. If the Fund dips below that amount, the Board may assess licensees

up to $20 in a two year period.The correct answer is:

$400,000

Kerra the Consumer has filed a claim for payment from the Transaction Recovery Fund. Which of the following statements must be incorrect?(virginia transaction recovery fund) There is no requirement to sue the Association of Realtor--in fact, there is no reason to sue them if she's trying to get a TRF payment. All of the other answers are correct statements.The correct answer

is: Kerra filed suit against the local Association of Realtors

The Real Estate Board can re-assess licensees if the

Transaction Recovery Fund's balance falls below:

(virginia transaction recovery fund) The Board may assess all licensees (active and inactive) if the Fund balance dips

below $400,000.The correct answer is: $400,000

Which of the following persons may file a claim and collect from the Virginia Transaction Recovery Fund?(virginia transaction recovery fund) Basically, anyone involved in the real estate industry cannot claim or collect from the Fund. This includes brokers, salespersons, developers, and lenders. The Fund is intended to protect consumers, not persons involved in the field.The correct

answer is: A consumer that has been defrauded in a real

estate transaction Harry is a broker. He works out a deal with Larry (a developer), Darrell (a contractor), and Tony (a mortgage banker). The deal states that Harry will sell all of the houses that Darrell built on Larry's land. After that, Tony would handle the mortgages of any buyers through his bank. Harry sells three houses, then runs off with all the funds. Larry, Darrell, and Tony all file claims for payment from the Transaction Recovery Fund. Who is most likely to collect?(virginia transaction recovery fund) People who regularly deal in real estate transactions are not eligible for payment from the Transaction Recovery Fund. This includes real estate agents, bankers, developers, and contractors.The

correct answer is: No one

An award from the Transaction Recovery Fund will result

in:

(virginia transaction recovery fund) Upon payment of a claim, the Real Estate Board REVOKES the license of the person named in the complaint. The Board may impose a maximum fine of $2,500 per violation (ex. improper or dishonest conduct), but it cannot order a prison

sentence.The correct answer is: Automatic revocation of

the real estate license If the named licensee is involved in multiple transaction violations, what is the maximum that a person may collect

from the Transaction Recovery Fund?(virginia transaction recovery fund) A single person can collect a maximum of $20,000 from the Fund, whether it is