VA Transaction Recovery Fund State Topic Tester Flashcards

VA Transaction Recovery Fund State Topic Tester Flashcards A license may be suspended without benefit of a hearing:For failure to pay an assessment to the TRF If a payment is made on a broker's behalf from the Transaction Recovery Fund, what action does the Board take?Automatically revoke the broker's license Kathy the Consumer has filed a claim for payment from the Transaction Recovery Fund. The reason for the claim is to reimburse a loss sustained after a salesperson made a gross misrepresentation. In order for Kathy to collect, she

must have already:

Filed a claim against the salesperson in a court of competent jurisdiction The purpose of the Transaction Recovery Fund is to:Reimburse financial losses caused by licensee misconduct The Real Estate Board can re-assess licensees if the

Transaction Recovery Fund's balance falls below:

$400,000

If the Board honors a claim and authorizes payment from the Transaction Recovery Fund, the claimant subrogates

his rights to the Board. The Board now has the right to:

File a claim against to the licensee to recover the amount paid from the Fund New licensee applicants are required to pay into the Transaction Recovery Fund. If necessary, the Board may

reassess licensees:

$20 in a two year period A real estate license could be suspended without

investigation if the licensee:

Does not pay the Transaction Recovery Fund assessment Claims for payment from the Transaction Recovery Fund

are filed with the:

Real Estate Board When a claim is paid from the Transaction Recovery fund, which of the following statements is true?The claimant assigns his rights to the Board, to the extent of the amount of money paid by the Fund Which of the following statements about the Transaction Recovery Fund is correct?A claimant may collect up to $20,000 A consumer may file a Transaction Recovery Fund claim for a loss sustained as the result of a licensee's fraudulent act. In order to receive payment, this claim must be in

connection with:

A real estate transaction 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?$20 If a judgment has been awarded to a claimant, what must the claimant do before the Board will authorize payment from the Transaction Recovery Fund?The claimant must have gone after any assets and property belonging to the debtor If the Board has authorized payment from the Transaction Recovery Fund, what is the effect for the licensee who committed the misconduct?The license will be automatically revoked

When the Transaction Recovery Fund balance falls below

a statutory minimum, it results in:

An assessment from all licensees to restore the fund to the minimum balance Kerra the Consumer has filed a claim for payment from the Transaction Recovery Fund. Which of the following statements must be incorrect?Kerra filed suit against the local Association of Realtors If the named licensee is involved in multiple transaction violations, what is the maximum that a person may collect from the Transaction Recovery Fund?

$20,000

The minimum balance of the Virginia Real Estate

Transaction Recovery Fund is:

$400,000

Which of the following persons may file a claim and collect from the Virginia Transaction Recovery Fund?A consumer that has been defrauded in a real estate transaction If a person wants to make a claim from the Transaction Recovery Fund, where should this claim be filed?The Real Estate Board An award from the Transaction Recovery Fund will result

in:

Automatic revocation of the real estate license Which of the following persons could file a claim for payment from the Transaction Recovery Fund?

All of the above: A licensed salesperson, to recover money

that his broker owes, A lender, to recover losses sustained due to a real estate agent's misrepresentation, and A tenant, seeking to recover a security deposit from his landlord 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?No one Which of the following statements is true if a broker has repaid the amounts awarded from the Transaction Recovery Fund?The Real Estate Board could withhold issuance of a new license, forever In a single transaction, what is the maximum amount that a person can collect from the Transaction Recovery Fund due to licensee misconduct?

$20,000

What is the maximum amount that can be paid from the Transaction Recovery Fund for claims against the same licensee during a two year period?

$100,000