What is the purpose of the Florida Real Estate Recovery Fund in relation to license law violations?

• A. To fund new license exams
• B. To reimburse consumers harmed by license law violations, subject to statutory limits and a claims process
• C. To insure all licensees against lawsuits
• D. To subsidize broker offices

Answer: (B)

The fund exists to protect the public by making restitution to consumers harmed by license law violations. When a real estate licensee violates the license laws and a consumer suffers monetary losses, those losses can be paid from the Recovery Fund, up to statutory limits and through a formal claims process. The fund is funded by license fees and fines, not by taxpayers, and payments are not automatic for every dispute—claims must be reviewed and approved within the statutory framework. This setup provides a remedy for consumers while keeping strict limits and procedures in place.