Assignment 6 - Violations

Question 1

Real Estate Recovery Fund

Answer 1

The Florida Real Estate Recovery Fund was created in a separate account in the Professional Regulation Trust Fund. The Florida Real Estate Recovery Fund is described in Chapter 475.482 F.S. in the following manner.

A) Applies to real estate brokerage transactions

1) Involving Florida real estate

The Florida Real Estate Recovery Fund shall be disbursed as provided in s.475.484, on order of the commission, as reimbursement to 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 brokerage transaction involving real property in this state, by any broker or sales associate who:

Question 2

Real Estate Recovery Fund

Answer 2

1) Involving Florida real estate
2) Involving a licensee under Chapter 475, F.S
3) Violating any part of Chapter 475, F.S.

Persons not qualified to make a claim

According to Chapter 475.483 (2), a person is not qualified to make a claim for recovery from the Real Estate Recovery Fund if:

a) Such person is the spouse of the judgment debtor or a personal representative of such spouse;
b) Such person is a licensed broker or sales associate who acted as a single agent or transaction broker in the transaction that is the subject of the claim;
c) Such person’s claim is based upon a real estate transaction in which the licensed broker or sales associate was the owner of or controlled the property involved in the transaction; in which the licensee was dealing for the licensee’s own account; or in which the licensee was not acting as a broker or sales associate;
d) Such person’s claim is based upon a real estate transaction in which the broker or sales associate did not hold a valid, current, and active license at the time of the real estate transaction; or
e) The judgment is against a real estate brokerage corporation, partnership, limited liability Company, or limited liability partnership.

Question 3

Payments

Answer 3

) Any person who meets all of the conditions prescribed in s. 475.482(1) or (2) may apply to the commission to cause payment to be made to such person from the Real Estate Recovery Fund:

a) Under s. 475.482(1), in an amount equal to the unsatisfied portion of such person’s judgment or $50,000, whichever is less, but only to the extent and amount reflected in the judgment as being actual or compensatory damages. Except as provided in s. 475.483, treble damages, court costs, attorney’s fees, and interest shall not be recovered from the fund.
b) Under s. 475.482(2), in an amount equal to the judgment against the broker or sales associate or $50,000, whichever is less.
2) Upon receipt by a claimant under paragraph (1)(a) of payment from the Real Estate Recovery Fund, the claimant shall assign her or his additional right, title, and interest in the judgment, to the extent of such payment, to the commission, and thereupon the commission shall be subrogated to the right, title, and interest of the claimant; and any amount subsequently recovered on the judgment by the commission, to the extent of the right, title, and interest of the commission therein, shall be for the purpose of reimbursing the Real Estate Recovery Fund.
(3) Payments for claims arising out of the same transaction shall be limited, in the aggregate, to $50,000, regardless of the number of claimants or parcels of real estate involved in the transaction.
(4) Payments for claims based upon judgments against any one broker or sales associate may not exceed, in the aggregate, $150,000.