Question

the commission will deny any applicant who has caused damages that forced payment from the recovery fund unless the applicant has repaid all of the damages in full plus ___ annual interest.

5%
7%
12%
15%

Explanation:

Identify the statutory requirement for Recovery Fund repayment

Under Alabama Real Estate License Law (specifically Alabama Code § 34-27-31), when a payment is made from the Real Estate Recovery Fund to satisfy a judgment against a licensee, the Commission will refuse to issue a new license or reinstate the license of the responsible party until they have repaid the amount paid from the fund in full, plus interest at a rate of 12% per year.

Match with the given multiple-choice options

The options provided in the image are:

• 5%
• 7%
• 12%
• 15%

The statutory interest rate is 12%.

Answer:

• 5%
• 7%
• 12% (Correct answer)
• 15%