Who is eligible to receive compensation from the Real Estate Guaranty Fund?

Study for the Connecticut Real Estate Exam. Ace your exam with flashcards and multiple choice questions. Each question comes with hints and explanations. Prepare confidently for your exam!

Compensation from the Real Estate Guaranty Fund in Connecticut is specifically designed to protect consumers who have suffered financial harm due to the actions of licensed real estate professionals. In this context, option B is the correct choice because it involves a seller who has been misled and has paid a commission to a broker based on false pretenses. The Guaranty Fund serves to reimburse individuals who suffer monetary losses due to fraudulent or wrongful conduct by real estate licensees, thus ensuring consumer protection.

The nature of compensation is closely tied to the need for consumer protection against dishonest practices. This means that if a seller is deceived into paying a commission under false premises—such as being misled about the services or the credentials of the broker—they are eligible to seek recompense from the fund, which is specifically designed for such situations.

Other options do not address fraudulent activity or consumer harm directly linked to the conduct of real estate professionals. This distinction is critical when determining eligibility for compensation from the Guaranty Fund, as it primarily serves to resolve issues arising from dishonesty and deception in real estate transactions.

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