Funding for the Recovery Account is derived from real estate license fees. If the account drops below $200,000 the commissioner is authorized to add seven dollars onto every broker’s license fee, and four dollars to that of each salesperson.
How is the recovery account funded?
The California Department of Real Estate administers a victim’s fund known as the Real Estate Consumer Recovery Account Fund (“Consumer Recovery Account”). The Consumer Recovery Account is funded from a portion of the fees paid by real estate licensees.
What funds the Montana real estate recovery account?
The financial backing for the fund is provided by a state revenue fund and a $35 fee assessed on all real estate license applications. The maximum amount the fund will pay out to satisfy a judgement (or judgements) against any individual licensee is $25,000.
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 is the real recovery fund?
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 California real estate Recovery fund?
The California Real Estate Recovery Fund was established in 1964. It is funded both from a portion of real estate license fees and also from fines collected by the Department of Real Estate (DRE). If the account’s balance exceeds $3.5 million, any excess in fees collected are credited to a general real estate fund.
What are the limits that can be paid out of Recovery account?
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 Recovery Trust Account?
reimburse consumers who suffer damages caused by real estate licensees, certificate holders, or their employees.
What is the main purpose of the Recovery Trust Account?
The law requires that these administrative-penalty funds be deposited into the Real Estate Recovery Trust Account, which disperses money to consumers owed damages due to a license holder’s conduct and subsequent inability to pay.
What is Chapter 1101 of the Texas Occupations Code?
OCCUPATIONS CODE CHAPTER 1101. REAL ESTATE BROKERS AND SALES AGENTS.
Who orders money to be paid from the recovery fund quizlet?
The listing broker and selling broker agree to share the commission equally. What will the listing agent receive if the agent is scheduled to get a 65% share from his broker? Who orders money to be paid from the Recovery Fund? A court.
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 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 is the maximum amount that the recovery fund reimburse?
If the application is granted, the applicant will be paid an amount for his or her actual and direct (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.
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?
If the Real Estate Recovery Fund falls below the required minimum balance of $500,000, what happens? Nothing happens because the minimum required balance is not $500,000. To cover claims against real estate practitioners for embezzlement of money that results in a cash loss to someone.