Question

After a long dispute with a bankrupt and corrupt Florida broker, the Gonzalez family was awarded a judgment for $12,500 in actual damages and $87,500 in punitive damages, for a total of $100,000. They were then surprised to find that the Real Estate Recovery Fund would not cover all $100,000. Which of the following is TRUE?

a) The Recovery Fund covers all damages awarded by the court.
b) Punitive damages are not eligible for coverage under the Recovery Fund.
c) The Gonzalez family can appeal the decision and receive full coverage.
d) The Recovery Fund only covers actual damages up to a certain limit.

Answer 1

The correct answer is d). The Recovery Fund only covers actual damages up to a certain limit.

Step-by-step explanation:

The Real Estate Recovery Fund is a program that provides compensation to victims of real estate fraud or misconduct by licensed brokers or salespeople. However, the fund has limits on the amount it can pay out. In many states, including Florida, the fund only covers actual damages up to a certain limit.

In the case of the Gonzalez family, they were awarded $12,500 in actual damages and $87,500 in punitive damages. However, the Recovery Fund will only cover the actual damages portion. The punitive damages, which are intended to punish the wrongdoer rather than compensate the victim, are not eligible for coverage under the fund.