What amount of damages is the Arkansas recovery fund obliged to cover if there are total damages of $100,000?

The Arkansas Recovery Fund is designed to provide financial protection to consumers who suffer damages due to the actions of real estate professionals. However, there are limits to the coverage provided by this fund. In the case of total damages amounting to $100,000, the fund typically covers a portion of these damages, up to a maximum limit.

The correct coverage in this context is $75,000, which is a specific limit set for claims against real estate professionals. This means that regardless of the total damages incurred, the maximum the Arkansas Recovery Fund will provide in compensation is $75,000. This coverage serves to protect consumers while also maintaining fiscal responsibility for the fund, balancing the needs of consumers with the limitations of available resources.

The reason other amounts are not correct is based on the established guidelines of the recovery fund, which do not allow for full coverage of total damages or arbitrary amounts that exceed the established limits. Therefore, understanding the fund's limits is crucial for both consumers and professionals within the real estate sector.