Real Estate Recovery Fund

Sometimes, a broker steals money or commits fraud, but when the victim sues them, they find out the broker is broke. The broker has no assets to seize. In the real world, this is called being "judgment proof." The victim wins the lawsuit but gets zero dollars. To fix this, Florida created the Real Estate Recovery Fund. It is a pot of money set aside to reimburse consumers who have been financially injured by a licensee.When Does it Apply? You cannot just dip into this fund because you are unhappy with a house. Three strict conditions must be met:Florida Real Estate: The transaction must involve property located in Florida.Licensee Involved: The harm must be caused by a holder of a valid, current real estate license (Broker, Broker Associate or Sales Associate).Violation of Chapter 475: The licensee must have violated the law (fraud, conversion of funds, etc.).