Where do the funds in the real estate recovery trust account come from?
Funding for the Recovery Account is derived from real estate license fees. If the account drops below $200,000 the commissioner is authorized to add seven dollars onto every broker’s license fee, and four dollars to that of each salesperson. Real Estate Recovery Funds Law and Legal Definition.
What is the Arkansas Recovery Fund maximum per licensee liability?
The answer is $250,000. A minimum balance of $250,000 must be maintained in the Arkansas Real Estate Recovery Fund. What must a licensee do with the real estate pocket card upon termination of employment with a real estate broker?
What is the real estate Recovery Trust Account?
These TREC recovery funds are “funds of last resort.” They have been created to reimburse consumers for out-of-pocket damages caused by license holders when the license holders cannot pay for those damages.
Who Cannot collect from the recovery fund?
The title insurance company is not entitled to recover from the Recovery Fund. Only an aggrieved person may recover. An aggrieved person is a client or member of the public who lost money when dealing with the licensee in the scope of the licensee’s authority.
What is the real estate Recovery Fund for?
The real estate recovery fund means funds used for the reimbursement of aggrieved persons who suffer monetary damages due to acts committed by licensed real estate brokers or salesmen.
Who is eligible to receive payment from the Recovery Fund?
Eligibility for the fund is established when a claimant pursuing recovery from a licensee in civil court proceedings has exhausted all avenues of collection from the judgment debtor pursuant to receiving a full judgment in a court of competent jurisdiction.
What is the main purpose of the Recovery Trust Account?
To receive monies collected by specified fees from real estate brokers and salesperson licensed by the state for the purpose of reimbursing aggrieved persons who suffer monetary damages by certain acts committed by licensed real estate broker, salesperson or by one of their unlicensed employees.
What is the maximum amount that the Commission will pay from the real estate Recovery Trust Account for claims against any one license holder until the account has been repaid in full by the license holder?
Regardless of the number of applicants, payments from the Real Estate Recovery Trust Account may not exceed $50,000 per transaction, with a maximum of $100,000 per license holder for multiple transactions.
What is a duty of the Arkansas Real Estate Commission?
The mission of the Arkansas Real Estate Commission (AREC) is to protect the public interest, through the examination, licensing, and regulation of real estate brokers and salespersons, real estate educators and through administration of the Arkansas Time-Share Law.
How long does a licensee have to respond to a complaint with the Arkansas Real Estate Commission?
(4) The commission may treat the failure to respond within thirty (30) days of the issuance of the citation as a violation of this chapter punishable by the penalties provided in subsection (a) of this section.
What is the maximum amount that can be paid from the real estate Recovery Fund For many judgments in several transactions against one licensee?
Fees are collected when the recovery fund falls below $1 million dollars. Before filing a claim, someone must have a case adjudged by a court of law. The Commission will not pay more than $50,000 for a single transaction or more than $150,000 for multiple claims against a licensee.
What type of estate is complete ownership and exists for an unlimited time?
Freehold estates are estates of indefinite duration that can exist for a lifetime or forever. Some types of freehold estates are classified as “estates of inheritance,” where the estate continues beyond the life of the holder and descends to their living heirs upon death as specified by the will or by law.
How much must new licensees initially pay into the Virginia Real Estate Transaction Recovery Fund?
Each new licensee must pay $20 into the Virginia Real Estate Transaction Recovery Fund.