PSI Virginia Real Estate Practice Exam

What action is required when the TRF balance falls below $400,000?

1. All licensees must pay an additional $20

2. All licensees must pay an additional $50

3. Only brokers need to pay

4. No action is required

The correct answer is: All licensees must pay an additional $20

When the TRF (Transaction Recovery Fund) balance falls below $400,000, an action is required to ensure that the fund can continue to serve its purpose of protecting consumers who suffer losses due to the actions of a real estate licensee. In Virginia, all active licensees are required to contribute to replenishing the fund when the balance dips below this threshold. In this case, every licensee must pay an additional $20 to help support the balance of the fund. This collective contribution from all licensees is essential to maintain the fund's ability to pay out claims and ensures that there is sufficient money available for consumer protection in real estate transactions. Contributions by all active licensees not only nurture the health of the fund but also provide a shared responsibility towards consumer protection in the real estate market. This requirement highlights the importance of the fund and the role that licensees play in sustaining it.