Which of the following is not a way the recovery fund is funded?

Prepare for the Minnesota Real Estate Salesperson Exam. Engage with flashcards and multiple choice questions, each with hints and explanations. Ace your exam!

The recovery fund that supports the protection of consumers in real estate transactions in Minnesota is primarily funded through various fees associated with the licensure and regulation of real estate professionals. License issuance and renewal fees, as well as additional assessment fees, directly contribute to the fund, ensuring that there are financial resources available to compensate consumers who have been wronged by real estate licensees.

Investments of recovery funds also add to the growth of the fund itself, as any interest or returns generated can be used to enhance the fund's capacity to provide redress to consumers when necessary.

However, application fees for buyers are not a typical source of funding for the recovery fund. These fees are generally related to the processes of purchasing real estate rather than the funding mechanisms established for regulatory purposes. Therefore, they do not play a role in sustaining or contributing to the recovery fund, making that answer the correct choice.

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