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How does the Florida real estate recovery fund work?

How does the Florida real estate recovery fund work?

The Florida real estate recovery fund is a special account established by the Florida Real Estate Commission (FREC). Real estate associates pay $1.50 per year and brokers who have more authority than associates pay $3.50 per year. The Commission collects the fees when a licensee submits an application.

What is the maximum reimbursement that can be paid from the Florida real estate recovery fund for a single judgment?

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.

What is the maximum reimbursement that can be paid from the Florida real estate recovery fund for a single judgment quizlet?

Only actual damages awarded by a court can be reimbursed from the fund. Punitive damages cannot be paid from the fund. The maximum payment from the recovery fund for a single real estate transaction is $50,000.

What does the real estate recovery fund pay 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 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.

Who can collect from the Florida real estate Recovery Fund?

The Real Estate Recovery Fund is an account created by the Florida Real Estate Commission (“FREC”) to reimburse any person, partnership, or corporation adjudged by a court of competent civil jurisdiction in this state to have suffered monetary damages by reason of any act committed, as a part of any real estate …

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.

Which power gives the Frec the authority to regulate and enforce Real Estate License Law?

The Florida Real Estate Commission held a meeting for the purpose of passing a new rule. This is an exercise of which Commission power? Quasi-legislative powers give the FREC the power to make and pass rules regulating the operation of licensees and the real estate profession.

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?

If the application is granted, the applicant is paid an amount for his or her allowable out-of-pocket loss in a transaction, up to a statutory maximum of $50,000 per transaction, with a possible total aggregate maximum of $250,000 per licensee.

Do you have to pay into Florida real estate recovery fund?

The Commission enforces the state’s real estate law and issues licenses to real estate associates and brokers. When an associate or broker like Donna, receive a license, they become a licensee and have to pay into the recovery fund. The fee that a licensee pays depends on the type of license that they have.

What’s the definition of a real estate recovery fund?

Real Estate Recovery Funds Law and Legal Definition. 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.

Why was the Florida homeowners construction recovery fund created?

The Florida Homeowners’ Construction Recovery Fund (Fund) was established in 1993 in order “to compensate consumers who suffer monetary damages as a result of certain violations by licensed contractors.” 1 The Fund’s legislative purpose is to “compensate an aggrieved claimant who contracted for the construction or improvement of the homeowner’s …

What’s the maximum amount Donna can get from the Florida real estate recovery fund?

If Donna has judgments against her from more than one transaction, the maximum amount that the Commission would pay for the claims is $150,000. The Commission decides to honor Mike’s claim, but if the recovery fund does not have enough money to cover his claim, it will be paid at a later date.