How is the Real Estate Recovery Fund funded?

The Real Estate Recovery Fund is funded primarily through a portion of the fees collected from real estate license applications. This means that when individuals apply for their real estate licenses, a part of the fee they pay goes directly into this fund. The purpose of the fund is to provide financial assistance to individuals who have suffered losses due to the wrongful acts of real estate licensees. This connection between license application fees and the funding of the Recovery Fund ensures that the fund has a steady source of income, directly linked to the real estate industry.

Other funding methods, such as government allocations or voluntary contributions, are not the primary mechanisms for creating this fund. Similarly, while real estate commission fines may contribute to various financial aspects of the commission's operations, they are not specifically designated for the Recovery Fund. Thus, the reliance on license application fees is key to understanding how the fund is sustained.