6.D. Real Estate Recovery Fund Flashcards

6.D. Real Estate Recovery Fund Flashcards Authorized Fund Limit and FeesThe fees collected for the fund are $1.50 per year for a real estate sales associate and $3.50 per year for a real estate broker. Fees are paid at the time of license renewal.These annual fees are collected when the availability of funds drops below $500,000. The collection is stopped when the funds available are in excess of $1 million, which is the authorized limit for the fund.Fines imposed by FREC are also transferred into the Real Estate Recovery Fund.Persons Not Qualified to Make a ClaimPersons who are not eligible to make a claim against the

Real Estate Recovery Fund include:A. A licensee who

served in the disputed transaction as either a transaction broker or single agentSpouse (or spouse's legal representatives) of the person finedB. A person making a claim regarding a real estate transaction in which a licensee was not acting as a broker or sales associateC. A person making a claim regarding a transaction handled by a licensee who did not hold a current and valid license when the transaction occurredD. A person pursuing a claim against a real estate brokerage (as opposed to a claim against a licensed individual) REAL ESTATE RECOVERY FUNDThe 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.Money from the fund also is available to reimburse a broker who lost a lawsuit resulting from disbursing money as stated in an Escrow Disbursement Order (EDO) Payment for Claims from the FundUnder FS 475.484(4), payments from the fund for claims involving a single transaction cannot exceed $50,000 or the unsatisfied portion of the claim, whichever is less.Payments for multiple claims made against any one broker or sales associate may not exceed a total of $150,000.If any amount is paid out of the Real Estate Recovery Fund to settle a claim or satisfy a judgment against a licensee, his/her license must be suspended. The licensee must repay the settlement amount in full, plus interest, before the license can be reinstated.If a broker who disbursed escrow funds under an Escrow Disbursement Order is sued and the EDO found not to be valid, the broker may be entitled to reimbursement from the fund. If the broker wins in court, he

may also recover reasonable attorney's costs from the Real Estate Recovery Fund Transactions the Fund AppliesTo The Real Estate Recovery Fund was designed to reimburse those parties that were significantly damaged in a real estate transaction. The commission may award a lump sum of money to help a person that has been damaged by the behavior of a licensee.To be eligible to receive money from the Real Estate Recovery Fund, the

transaction must meet the following conditions:The

transaction must involve a Florida piece of real estate.A real estate licensee must be involved in the transaction for which the claim is made. The licensee must have a current and valid real estate licensee.In the transaction for which the claim is made, a violation of FS 475 must have been

committed.