Question

LuAnn is a Minnesota real estate licensee. Several of her former clients were awarded final judgments related to LuAnn's illegal trust fund conversion activities. Which statement best describes any recovery that could be paid out by the Real Estate Education, Research, and Recovery Fund to LuAnn's victims?

A. The fund will pay the entire amount of the final judgments to LuAnn's victims.
B. The fund will pay a portion of the final judgments to LuAnn's victims, up to a statutory limit.
C. The fund will pay the final judgments to LuAnn herself as a form of penalty.
D. The fund will pay LuAnn's legal fees associated with the judgments, but not the final judgments themselves.

Answer 1

The Real Estate Education, Research, and Recovery Fund will pay a portion of the final judgments to LuAnn's victims, up to a statutory limit.

Step-by-step explanation:

The answer is B. The Real Estate Education, Research, and Recovery Fund will pay a portion of the final judgments to LuAnn's victims, up to a statutory limit.

The Real Estate Education, Research, and Recovery Fund is a fund established to compensate individuals who have suffered losses due to the actions of a licensed real estate professional. The fund provides financial assistance to victims of real estate licensees who have been found guilty of illegal activities.

However, the fund has a statutory limit, which means that it can only pay a certain amount of money to each individual victim. The actual amount paid out will depend on the specific laws and regulations governing the fund in Minnesota.