What kind of losses does the Delaware real estate guaranty fund cover?

The Delaware real estate guaranty fund is designed to provide financial protection to consumers who suffer losses as a result of wrongful acts committed by real estate licensees. Specifically, the fund covers losses from licensed deception, which may include fraudulent activities, misrepresentation, or breaches of fiduciary duty by agents or brokers in the course of their professional duties. This safety net ensures that consumers have recourse if they are harmed financially due to unethical behavior by a real estate professional.

In contrast, losses due to market fluctuation are common in any investment, including real estate, and are not covered by the fund because they are inherent risks of the market. Operational losses of real estate businesses reflect the costs of running a business and do not relate to consumer harm directly resulting from licensee misconduct. Finally, legal fees incurred during transactions are typically the responsibility of the parties involved in a transaction and would not be covered by the guaranty fund. The primary aim of the fund is consumer protection, focusing on restitution for losses tied to the wrongful actions of licensed professionals.