State Laws Recovery Fund True/False Flashcards
$45,000 nominative damages & $15,000 compensatory damages were awarded to an individual by the court. The maximum available from the recovery fund is $60,000.
False:
$50,000 maximum per transaction
The maximum payout from the recovery fund for any one licensee, in aggregate, may not exceed $150,000.
True
If money is paid out of the recovery fund, the violating licensee is issued a citation.
False:
Suspension
The maximum payout from the recovery fund is $50,000 per licensee per transaction up to an aggregate of $150,000 for any one licensee.
True
In order to qualify for payment out of the Recovery Fund, the aggrieved party must sue the broker & obtain a final judgment.
True
In order to qualify for payment out of the recovery fund, the aggrieved party must file a claim within 5 years of discovery.
False:
2 years
A claimant against the recovery fund must meet the criteria of Florida statutes 475.482 & 475.483
True
A claimant against the recovery fund must prove the offending broker committed fraud.
False
To receive money from the recovery fund, the claimant must first obtain a judgment & attempt to recover assets from the licensee.
True
9 investors in 3 transactions sued the recovery fund. The total amount defrauded was $90,000 combined loss. In aggregate, the maximum that can be paid out of the fund on behalf of any one licensee is $150,000.
True
The recovery fund may be used by sales associate who has not been paid a listing commission.
False:
Must be consumer
If a business is damaged financially by the acts of licensee, the business may, upon receiving a court judgment & pursuing the licensee’s asset, sue for money from the recovery fund.
True
Upon final judgment against broker & payment from the recovery fund, broker’s license is under indefinite suspension.
True
