Idaho Real Estate Practice Exam

What are the liability limits of the real estate recovery fund in Idaho?

1. Up to $5,000 per claim

2. Up to $10,000 per licensee per year

3. Up to $10,000 per claim

4. No limits

The correct answer is: Up to $10,000 per licensee per year

The liability limits of the real estate recovery fund in Idaho are structured to provide a safeguard for consumers who may have suffered financial harm due to the actions of a licensed real estate professional. The correct answer specifies that individuals can receive compensation of up to $10,000 per licensee per year. This limit is important as it establishes a maximum amount that can be claimed within a given year per licensee, ensuring that there is a cap on the financial exposure for the fund while still offering protection to consumers against fraudulent or unethical actions by real estate agents. It serves to encourage professionalism within the industry, knowing that there is a financial consequence for wrongdoings. Other options do not accurately reflect the structure of the fund's limits or guidelines. For instance, while there may be specific caps on individual claims, these figures do not align with the overall policy in place regarding annual compensation from the fund. Understanding these limitations helps licensees and consumers alike navigate the protections in place within Idaho's real estate market.