PSI Virginia Real Estate Practice Exam

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Prepare for the Virginia Real Estate Exam. Utilize flashcards and multiple-choice questions, each with hints and explanations. Ensure exam readiness!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the maximum payment for a single party in a single transaction from the TRF?

$10,000
$15,000
$20,000
$25,000

The correct answer is: $20,000

The maximum payment for a single party in a single transaction from the Virginia Transaction Recovery Fund (TRF) is indeed $20,000. The TRF was established to provide consumers with a means of financial recovery in cases where they suffer losses due to wrongful acts of real estate professionals. This fund is particularly important as it instills confidence in the real estate market by ensuring that consumers have some recourse if they experience financial loss due to unethical behavior or misconduct of licensed real estate agents. In practice, this means that if a consumer files a successful claim against a real estate agent for fraudulent acts, misrepresentation, or other specified wrongful behaviors, they can receive up to $20,000 for their losses directly from the TRF. This limit is per individual transaction, which serves to protect the fund from being depleted by a single claim but still provides substantial financial support for consumers who have experienced significant losses. Understanding the parameters of the TRF is crucial for both real estate licensees and consumers, as it underlines the accountability measures in place within the real estate industry.