What is the maximum recovery fund compensation for a single aggrieved party in Kentucky?

The correct answer reflects the maximum recovery fund compensation for a single aggrieved party in Kentucky, which is set at $20,000. This amount serves as a financial safeguard for consumers who have suffered losses due to the misconduct of a licensed real estate agent. The recovery fund is designed to ensure that individuals who have been wronged have a means of recourse to recover some of their financial losses.

This specific amount is established by state law as a protective measure, encouraging public trust in the real estate profession by providing a safety net for consumers. It's important for real estate professionals to be aware of these regulations, as they underscore the importance of ethical behavior in transactions. Having a clear understanding of the recovery fund provisions also helps real estate agents to communicate effectively with clients about the protections available to them.