Florida Broker Practice Exam

What is the total limit on claims against a single licensee from the Recovery Fund?

1. $50,000

2. $100,000

3. $150,000

4. $200,000

The correct answer is: $150,000

The total limit on claims against a single licensee from the Recovery Fund is established at $150,000. This limit is designed to provide financial protection for consumers who suffer losses due to the actions of a licensed real estate professional in Florida. The Recovery Fund serves to compensate individuals who have valid claims resulting from fraud, misrepresentation, or the illegal actions of a real estate broker or sales associate, ensuring that consumers have a recourse for recovery. By capping the claim amount at $150,000, the fund balances the need to protect consumers while also managing the financial risks associated with supporting claims against individual licensees. This regulatory framework encourages a higher standard of ethical behavior among real estate professionals, as significant financial consequences are attached to their actions. The limit reflects both the potential financial damages that an individual consumer might face and the necessity to maintain a sustainable fund for ongoing claims.