What is the minimum balance required for the Recovery Trust Account?

What is the minimum balance required for the Recovery Trust Account?

• A. $1 million
• B. $1.5 million
• C. $1.7 million
• D. $2 million

Answer: (C)

The minimum balance required for the Recovery Trust Account is $1.7 million. This account is significant within the Texas real estate regulatory framework as it serves to provide compensation to consumers who have incurred financial losses due to the actions or omissions of licensed real estate professionals who have acted improperly. The Recovery Trust Account is funded through fees collected by the Texas Real Estate Commission from real estate license holders. Maintaining a specific minimum balance ensures that there are sufficient funds available to meet potential claims, thus protecting consumers and enhancing the overall integrity of the real estate profession in Texas. Having a sound balance in this account reinforces consumer confidence and provides a safety net in cases of conflict or misconduct.

The minimum balance required for the Recovery Trust Account is $1.7 million. This account is significant within the Texas real estate regulatory framework as it serves to provide compensation to consumers who have incurred financial losses due to the actions or omissions of licensed real estate professionals who have acted improperly. The Recovery Trust Account is funded through fees collected by the Texas Real Estate Commission from real estate license holders. Maintaining a specific minimum balance ensures that there are sufficient funds available to meet potential claims, thus protecting consumers and enhancing the overall integrity of the real estate profession in Texas. Having a sound balance in this account reinforces consumer confidence and provides a safety net in cases of conflict or misconduct.