If a licensee has been found guilty of fraud and ordered to pay restitution, what is the maximum amount a consumer can receive from the recovery fund?

In Kentucky, the recovery fund is designed to provide financial protection to consumers who have suffered losses due to the fraudulent actions of licensed professionals. When a licensee is found guilty of fraud and subsequently ordered to pay restitution, consumers harmed by that licensee may be eligible to receive compensation from this recovery fund.

The maximum amount that a consumer can receive is set by the state's regulatory framework for the recovery fund. In this case, the correct answer indicates that the maximum recovery amount per consumer is $20,000. This amount is intended to mitigate the financial damage caused by the fraudulent behavior of the licensee and is a critical aspect of consumer protection within the state's real estate practice laws.

Understanding this framework is important for both consumers seeking compensation and licensees who need to be aware of the repercussions of their actions. It highlights the importance of ethical conduct in real estate transactions and the protective measures in place for consumers.