If a licensee is found guilty of defrauding three consumers, how much can the commission pay from the recovery fund?

In Kentucky, the recovery fund is designed to reimburse consumers who have suffered losses due to the wrongful acts of licensed real estate agents or brokers. When a licensee is found guilty of defrauding consumers, the state provides a measure of protection for these consumers through this fund.

The correct amount that the commission can pay from the recovery fund in cases where a licensee has defrauded multiple consumers is $50,000. This limit is representative of the total amount that can be claimed for damages per occurrence against the licensee. This means that regardless of the number of consumers defrauded, the maximum payout for a single case involving that licensee remains capped.

The other amounts listed would exceed the protections offered by the recovery fund for such a situation. Understanding this limit is crucial for both consumers seeking recourse and licensees who must adhere to ethical practices to avoid being subjected to the recovery fund claims.