Florida Broker Practice Exam

What must a licensee have held at the time of the alleged act to claim against the Real Estate Recovery Fund?

1. A temporary license

2. An inactive license

3. An active license

4. No license at all

The correct answer is: An active license

To make a claim against the Real Estate Recovery Fund, a licensee must have held an active license at the time of the alleged act. The purpose of the Real Estate Recovery Fund is to provide compensation to individuals who suffer monetary losses due to the wrongful acts of a licensed real estate professional. Therefore, it is essential for the claimant to have an active license to ensure that they were authorized to conduct real estate transactions and that their actions fall within the regulatory framework established by the state. An active license signifies that the licensee is legally allowed to practice real estate and has met the requirements set forth by the Florida Real Estate Commission. This connection is vital when seeking restitution from the Recovery Fund, as only those who were legally operating under an active license at the time of the incident are eligible to lodge claims. Having a temporary or inactive license does not fulfill the requirements for making a claim, as these statuses indicate that the individual was not in a position to engage in licensed real estate activities at the time of the alleged wrongdoing.