What is the Florida Real Estate Recovery Fund?This is a short summary of what the Real Estate Recovery Fund (“RF”) is and how it works. It is not an exact restatement of the law. Show
Any specific questions concerning eligibility or discussion of a specific claim should be directed to a licensed Florida attorney. How is the Florida Real Estate Recovery Fund Funded?The RF is funded by a fee of $3.50 added to the license fee of new broker license applications and renewal of broker's licenses, as well as a fee of $1.50 added to the license fee of new sales associate license applications and renewal of sales associate licenses. In addition, all money collected from fines imposed and collected by the FREC are transferred to the Florida Real Estate Recovery Fund. Who Can Collect From The Recovery Fund?Any person or business entity may collect from Florida's Real Estate Recovery Fund, providing that the broker’s or sales associate’s license was active during the time that the claiming party was harmed. What Does This Mean for Brokers?It is important to know about the process if a brokerage intends to hold escrow because the RF protects the broker if the broker receives an escrow disbursement order issued by the FREC. A
brokerage should make sure they take the requisite steps when dealing with an escrow claim so that they can preserve their right to claim on the RF. How Does The Florida Real Estate Recovery Fund Work?The purpose of establishing the Florida Real Estate Recovery Fund is to protect “consumer-members” or the general public. In the event that a member of the public is harmed financially by a real estate licensee violating Florida Statute 475, the member of the public can request compensation from the RF if they meet certain requirements. Can A Broker Claim From The Florida Real Estate Recovery Fund?Yes. However, there are circumstances where a broker would not be permitted to make a claim from the RF. Florida Statutes Section 475.483 (2)(a) states that a person cannot make a claim if they are a licensed broker or sales associate who was acting as a transaction broker or single agent in the transaction that was the subject of the RF claim. When Can a Broker Claim From The Florida Real Estate Recovery Fund?Suppose a licensee was financially harmed through the actions of another licensee. In that case, the injured party could file a claim from the RF, although the main purpose of establishing the Real Estate Recovery Fund is to protect the public. What Is The Maximum Amount That The Florida Real Estate Recovery Fund Will Award?The maximum amount that can be claimed from Florida’s Real Estate Recovery Fund is $50,000 per single transaction. An injured party can claim a maximum of $150,000 for multiple transactions; they can claim the unsatisfied portion of a judgment,
whichever amount is less. How Long Will A Licensee Be Suspended For If Funds Are Paid Out Against A License Holder?Suspension of a license is a temporary penalty. The Real Estate Commission may suspend a license for a maximin of 10 years. What's the maximum the Louisiana real estate Recovery fund will pay on behalf of a single licensee regardless of the number of judgments or transactions involved?Payments for claims arising out of the same transaction shall not exceed the aggregate limit of twenty thousand dollars, regardless of the number of claimants or parcels of real estate involved in the transaction.
What is the maximum amount that will be paid out of the recovery account for a transaction?What are the payment limits for the recovery funds? Regardless of the number of applicants, payments from the Real Estate Recovery Trust Account may not exceed $50,000 per transaction, with a maximum of $100,000 per license holder for multiple transactions.
What is the maximum reimbursement that can be paid from the Florida real estate Recovery fund?The maximum amount that can be claimed from Florida's Real Estate Recovery Fund is $50,000 per single transaction. An injured party can claim a maximum of $150,000 for multiple transactions; they can claim the unsatisfied portion of a judgment, whichever amount is less.
What is the limit on the amount that plaintiffs can collect from the real estate Recovery fund in Arizona?Thirty thousand dollars for each transaction, regardless of the number of persons aggrieved or the number of licensees or parcels of real estate involved.
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