What is the purpose of the fraud fund in Montana real estate?

The purpose of the fraud fund in Montana real estate is specifically designed to address claims of fraud that arise when a victim has an unsatisfied deficiency judgment. This fund serves as a safety net for consumers who have been wronged in real estate transactions involving fraudulent actions by licensed real estate professionals. If an individual suffers financial losses due to fraud and is unable to recover those losses through a legal judgment, the fraud fund can provide compensation up to a certain limit.

This function is crucial because it enhances consumer protection within the real estate industry. By offering a means of recourse for victims of fraud, the fund helps maintain trust in real estate transactions and encourages ethical behavior among real estate professionals.

The other options refer to different aspects of liability and compensation but do not accurately describe the specific focus of the fraud fund. For instance, negligence claims and broker mistakes are typically addressed through errors and omissions insurance, while the needs of buyers and sellers may be met through different compensation structures, none of which align with the specialized purpose of the fraud fund.