Question

which of the following is incorrect? in order for the commission to pay the claimant from the recovery fund, the claimant must

• not be the personal representative, spouse, child, or parent of the debtor.
• be related to the debtor.
• have won and can verify a judgment.
• must deduct any funds already collected.

Explanation:

Analyze Recovery Fund requirements

Under Alabama Real Estate License Law, to receive payment from the Recovery Fund, a claimant must not be the spouse, child, parent, or personal representative of the debtor licensee. Therefore, the claimant cannot be closely related to the debtor.

Identify the incorrect statement

The requirement "Be related to the debtor" is the opposite of the actual law. This makes it the incorrect statement among the choices, which is what the question is asking for.

Answer:

• (A) Not be the personal representative, spouse, child, or parent of the debtor.
• (B) Be related to the debtor. (Correct answer)
• (C) Have won and can verify a judgment.
• (D) Must deduct any funds already collected.