Specifically, there is little or no discrepancies between the real estate recovery fund in Florida and the real estate recovery fund in Illinois.
Therefore, our discussion today is going to encapsulate the position of the law in the two-state.
You must note that the enactment of the remedial legislation of real estate recovery fund contributes to the growth of consumer rights.
The statutory regulation of salesmen and real estate brokers is designed to protect the public from persons or any person not qualified to participate in the ever-growing real estate business.
Toward this end, both the Florida and Illinois General Assembly enacted a regulatory act that gave birth to the infamous Real Estate Recovery Fund in Florida and the Illinois Real Estate Recovery Fund scheme.
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The purpose of this fund is to award compensation — where necessary — for damages born out of wrongful activities of realtors or real estate licensees.
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All you need to know about the real estate recovery fund in Florida and Illinois
While the aims and objectives for legislating and making into law the real estate recovery fund have been said to aid compensations and award of damages for real estate victims.
Now, more than ever, is the right and perfect time to discuss the topic of discourse under several headings:
What is a recovery fund?
A recovery fund is the fund preserved by states real estate commissions purposely to assist or compensate victims who have suffered a wrong, breach of trust, or breach contract from a real estate agent.
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It is equally the fund set aside for people who have incurred losses or damages from broker’s carelessness or irresponsibilities but unable to recover such as a result of undiscoverable assets or lack of insurance record.
Legally speaking, the Real Estate Recovery Fund could be said to be available to any person who alleges before the court for real estate fraud or irregularities.
The court, when satisfied with the person’s pleading, will embark on fact findings.
After which it is obliged to award a compensation judgment against the real estate licensee for criminal restitution, trust funds conversion, or the likes depending on the court findings.
Real Estate Recovery Fund in Florida?
The Florida Real Estate Recovery Fund can be best described as a special account maintained by the Florida Real Estate Commission “FREC”.
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This FREC Commission enforces the Florida real estate law and at the same time issues licenses to brokers, real estate associates, etc.
Importantly, the recovery fund account is meant for reimbursing any person or individual, partnership, or corporation adjudged by any court of competent civil jurisdiction in Florida to have suffered any monetary damages.
Such monetary damages must have arise by reason of an act committed by any real estate licensee, sales associate, or broker in a brokerage transaction of real properties in the state.
Real Estate Recovery Fund In Illinois
In the same vein, Illinois’ Real Estate Recovery Fund was created to provide payment and compensation to persons or organizations who have obtained special but unsatisfied court judgments against brokers or licensed real estate associates.
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That is to say, the cause of action — for a recovery fund to be given in Illinois — must have arisen from real estate associate or broker’s professional activities.
And the judgment, too, must be based on the grounds of trust fund conversion, misrepresentation, fraud, or deceit.
What is more, the recovery from the real estate fund in Illinois is limited only to actual loss or cash damages incurred.
That is, losses in any punitive damages or market value that the court may awarded against the realtor or broker will not be paid or reimbursed out of the fund.
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Who is entitled to the real estate recovery fund?
The Florida real estate recovery fund and the Illinois real estate recovery fund are two legal instrument or framework meant to serve people of different countries.
However, it is obvious that the wordings and intentions of the draft men of the two legislations is to compensate the brunt bearers in the real estate industry.
That being said, it is important to answer the question: who is entitled to the real estate recovery fund according to the two states recovery fund laws?
Thus, the only person entitled to the real estate recovery fund is an aggrieved person — either a member of the public or a client of the broker —who suffered a wrong from the hand of a licensee.
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Such person within the authority and power extended to him by the Real Estate Recovery Fund may recover from the Florida or Illinois Recovery Fund; depending the state you belong.
However, unlike Florida, you may want to note that only damages suffered in cash value and not market value or punitive worth is recoverable in Illinois.
Who is an aggrieved person?
An aggrieved person can be best described as the member of the public or a client who lost his money when transacting with the licensee or broker in the scope of his (licensee’s) authority.
Thus, all the title insurance companies cannot be called an aggrieved person.
Are title insurance companies entitled to the recovery Fund?
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I’ll answer this in negative! The title insurance companies are exempted and not entitled to benefit from either the Florida nor Illinois Recovery Fund.
It is only an aggrieved person with a good cause of action that may recover from the real estate fund.
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CONCLUSION
At this juncture, it’s crucial you note that the real estate recovery fund in Florida and Illinois are valuable remedies for clients or members of the public who have suffered wrongs from the unlawful activities carried out by real estate licensees.
Lastly, be informed that both the Florida and Illinois real estate recovery fund right, however, do not and cannot operate to the disadvantage or detriment of the licensee’s constitutional rights.
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