When does collection for the recovery fund stop?

Study for the Gold Coast Real estate Sales Associate Pre-License Test with multiple choice questions! Get hints and explanations for each question. Prepare for your exam with confidence!

The correct answer is that collection for the recovery fund stops when it reaches $1,000,000. This threshold is set to ensure that the fund remains adequately funded to provide for claims made against real estate professionals who have caused financial harm to consumers. Once the fund balances at $1,000,000, there is no need for additional contributions until it falls below this amount, at which point collections may resume to ensure sufficient funds are available for future claims.

Other amounts mentioned are not relevant as they either represent amounts that would be considered too low or too high for maintaining an effective recovery fund. A threshold of $500,000 would not allow for sufficient coverage for multiple claims, while $2,000,000 exceeds what is typically necessary for adequate fund management under normal operating conditions. The goal is to maintain a balance that allows for both long-term stability of the fund and protection for consumers affected by real estate transactions.

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