What type of issues does the fraud fund not cover?

The fraud fund specifically exists to help protect consumers against financial losses resulting from fraudulent activities committed by real estate professionals. Therefore, claims that fall under the category of negligence are not covered by the fraud fund. Negligence refers to failure to take proper care in doing something, which may lead to unintentional harm or damage. While serious, negligence does not involve fraudulent intent or deception, which is the primary focus of the fraud fund’s coverage.

In contrast, fraud claims are directly related to intentional misrepresentations or deceitful practices, making them eligible for coverage. Administrative issues, like procedural errors within real estate transactions, generally do not fall under the fund’s purview but may still drive costs and complications in specific situations. Lastly, license revocations are related to the disciplinary actions taken against real estate professionals, often due to misconduct, but do not represent claims against consumers for losses due to fraud. Overall, the fund is designed to address intentional fraud rather than unintentional negligence or administrative challenges.