What does the real estate recovery fund pay for?
Estate Education, Research, and Recovery Fund (the Fund) is to compensate members of the public who have been damaged by a real estate broker’s or real estate sales agent’s (the Agent) fraud, misrepresentation, or deceit in a real estate transaction, if the Agent can- not pay.
What is the purpose of the real estate Recovery Fund quizlet?
What is the purpose of the Real Estate Recovery Fund? The answer is to provide a means of compensation for actual monetary losses suffered by individuals as a result of the acts of a licensee who violated the license law or committed other illegal acts related to a real estate transaction.
What is the recovery fund used for?
The real estate recovery fund means funds used for the reimbursement of aggrieved persons who suffer monetary damages due to acts committed by licensed real estate brokers or salesmen. Provided such act must be performed by a broker or salesman.
What is the purpose of the Florida real estate Recovery Fund quizlet?
The Real Estate Recovery Fund was established to reimburse those judged by a Florida court to have suffered significant monetary damage in a real estate transaction as a result of the acts of a real estate licensee. No punitive damages may be collected from the fund.
Who Cannot collect from the recovery fund?
The title insurance company is not entitled to recover from the Recovery Fund. Only an aggrieved person may recover. An aggrieved person is a client or member of the public who lost money when dealing with the licensee in the scope of the licensee’s authority.
What is the maximum amount that the recovery fund reimburse?
A successful applicant to the Recovery Fund may be paid up to a statutory maximum of $50,000 per transaction, with a possible total aggregate maximum of $250,000 per licensee.
What happens if the real estate recovery fund falls below the required minimum balance of $500000?
4 of 9 – What happens if the Real Estate Recovery Fund falls below the required minimum balance of $500,000? A surcharge is collected from real estate licensees. The existing balance is invested to increase the funds. Nothing happens because the minimum required balance is not $500,000.
What is the maximum amount that will be paid out of the Florida real estate Recovery Fund per licensee?
Maximum payout is $50,000 per transaction and $150,000 per licensee. Recovery Fund will only pay real damages, not punitive damages (pain and suffering money) and attorney fees or court costs. Recovery Fund money comes from fines and fees.
How is the real estate Recovery Fund funded quizlet?
The Real Estate Recovery fund is financed through money received from administrative fines and surcharges on new and renewing licenses. … A licensee has been issued a Final Order of the FREC, suspending his license.
What happens to you if you’re involved in a case and can’t pay the judgment amount and the consumer is awarded money from the real estate Recovery fund?
What happens to you if you’re involved in a case and can’t pay the judgment amount, and the consumer is awarded money from the Guaranty Fund? Your license will be suspended and can’t be reinstated until you pay back the fund plus interest.
Who’s entitled to reimbursement from the real estate Education Research and Recovery fund?
The Commission established the Fund to compensate those customers who have suffered damages through the fault of a real estate licensee, and who cannot recover the damages through the normal legal means. The minimum balance of the Fund must be at least $1,000,000.
What is a recovery fund?
A fund maintained by many state real estate commissions to assist in compensating victims who have suffered as a result of a breach of a real estate agent’s or broker’s responsibilities but were unable to recover because there was no insurance and no discoverable assets.