Quick Answer: What is the purpose of the Florida real estate recovery fund?

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.

What will the real estate Recovery Fund never pay for?

What is the maximum amount that can be paid from the Real Estate Recovery Fund For many judgments in several transactions against one licensee? Recovering Funds The Commission will not pay more than $50,000 for a judgment involving a single transaction. Also, the Commission will not pay any legal fees.

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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.

Who is eligible to receive payment from the Recovery Fund?

Eligibility for the fund is established when a claimant pursuing recovery from a licensee in civil court proceedings has exhausted all avenues of collection from the judgment debtor pursuant to receiving a full judgment in a court of competent jurisdiction.

What is the maximum amount that will be paid out of the Florida real estate Recovery Fund per licensee?

The Commission will not pay more than $50,000 for a single transaction or more than $150,000 for multiple claims against a licensee.

What is the maximum amount of money an aggrieved person can recover from the real estate Recovery Fund?

The amount that may be paid from the real estate recovery fund may not exceed twenty thousand dollars ($20,000) per judgment and an aggregate lifetime limit of fifty thousand dollars ($50,000) with respect to any one (1) licensee.

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 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.

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How long will a real estate license be suspended if funds from the Florida real estate Recovery Fund are paid out against a license holder?

The maximum period for which the Florida Real Estate Commission may suspend a license is ten years. The spouse of a judgment debtor is qualified to make a claim from the Real Estate Recovery Fund.

What is recovery money?

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.

How does a consumer start the process of claiming money from the recovery fund?

The Consumer Recovery Fund is fully funded through a portion of real estate agent licensing fees. After the victim secures a civil judgment, criminal restitution order, or arbitration award against the real estate agent, the process of filing a claim with the fund can begin.

WHO issues a recommended order at the conclusion of a formal hearing?

Within 90 days following conclusion of the hearing, the administrative law judge submits a recommended order based on findings of fact and conclusion of law. The findings of fact and conclusions of the administrative law judge must be based on clear and convincing evidence.