North Dakota Real Estate Practice Exam

Who qualifies to make a claim against the Real Estate fund?

1. Real estate agents only

2. Brokerage firms only

3. Consumers and licensees

4. Developers only

The correct answer is: Consumers and licensees

The correct answer is that consumers and licensees qualify to make a claim against the Real Estate fund. The Real Estate fund is designed to protect consumers and provide financial recourse to individuals who suffer a loss due to the improper actions of real estate licensees. This includes situations where a licensee has committed acts such as fraud, misrepresentation, or failure to provide services as promised. By including both consumers and licensees in the eligibility criteria, the fund emphasizes the need to maintain trust and accountability within the real estate industry. Consumers benefit from the assurance that they have a safety net in case of losses incurred from a real estate transaction gone wrong. Licensees, on the other hand, are also protected in certain circumstances, fostering a sense of security and ethical practice within the profession. The other options, which suggest that only agents, brokerage firms, or developers can make claims, do not accurately reflect the purpose of the Real Estate fund as a protective measure for a broader range of stakeholders involved in real estate transactions.