Arizona Real Estate License Practice Exam

The correct answer indicates that a buyer must file a claim against the Recovery Fund within five years of the incident. This timeframe is significant, as it provides buyers a reasonable duration to recognize issues related to real estate transactions and act on them.

The Recovery Fund is designed to protect consumers who may have suffered financial losses due to the actions of a licensed real estate professional. By allowing a period of five years to file a claim, the statute acknowledges that it may take time for a buyer to discover wrongdoing or to assess the resulting damages appropriately. This extended timeline helps ensure that consumers have ample opportunity to seek recourse for losses incurred due to improper conduct in real estate transactions.

The other options, while suggesting shorter timeframes, would limit the ability of buyers to respond to issues that may not be immediately apparent. The five-year period thus serves as a balanced approach to consumer protection in the real estate market.