Law & License

    Real Estate Recovery Fund

    A Florida fund that reimburses a member of the public who holds an unpaid court judgment against a licensee for certain violations.

    The Florida Real Estate Recovery Fund can reimburse a member of the public who wins a court judgment against a licensee for specified violations in a real estate transaction, when that judgment cannot be collected from the licensee.

    After the fund pays a claim, the licensee's license is automatically suspended until the licensee repays the fund in full, plus interest.

    On the exam

    The Recovery Fund pays victims with uncollectible judgments. The licensee's license stays suspended until the fund is repaid.

    Exam trap

    The Recovery Fund is not the brokerage escrow account, and it pays only after a judgment cannot be collected from the licensee.

    Tested in

    Violations and Penalties (3% of the exam)

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    This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.