Florida Broker Practice Exam

What is the maximum reimbursement a broker can receive under the Recovery Fund for complying with an EDO, including additional costs?

1. $25,000 including fees

2. $35,000 including fees

3. $50,000 including court costs and attorney fees

4. $75,000 excluding fees

The correct answer is: $50,000 including court costs and attorney fees

The correct answer is based on the guidelines governing the Florida Real Estate Recovery Fund, which is designed to compensate individuals who suffer monetary loss due to the actions of a licensed real estate professional. Under this fund, the maximum reimbursement a broker can receive for complying with an Emergency Suspension Order (EDO) is $50,000. This amount includes not only the claim for damages but also incorporates court costs and attorney fees incurred as part of the process. The Recovery Fund's provision helps ensure that both consumers and real estate licensees have a measure of financial protection. Such support underscores the state's commitment to maintaining ethical standards within the real estate profession while providing recourse to those who may have been wronged. Understanding this limit is crucial for real estate brokers as it emphasizes the importance of compliance with regulations and orders issued by the Florida Real Estate Commission, as well as the financial implications of potential legal actions.