Leasing License Practice Exam

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What type of fund does the IDFPR utilize to address claims from aggrieved persons against licensees?

Residential Assistance Fund
Real Estate Recovery Fund
Broker Assurance Fund
Tenant Protection Fund

The correct answer is: Real Estate Recovery Fund

The correct answer is the Real Estate Recovery Fund. This fund is specifically established to provide financial restitution to individuals who have suffered losses due to the actions or inactions of licensed real estate professionals. If an aggrieved person files a claim against a licensee and is awarded damages, but the licensee is unable to pay, the Real Estate Recovery Fund can be accessed to cover the claim, ensuring that consumers have a safety net when dealing with real estate transactions. The distinction of this fund lies in its focus on real estate transactions and the protection of consumers in that specific domain. As a consequence, the other mentioned options serve different purposes. For example, a Residential Assistance Fund typically addresses housing-related assistance, a Broker Assurance Fund usually pertains to brokerage firms and their operational liabilities, and the Tenant Protection Fund is aimed at safeguarding tenant rights. Therefore, the Real Estate Recovery Fund is uniquely positioned to fulfill the needs of individuals seeking recourse from real estate licensees.