In what circumstance will the commission disburse from the recovery fund?

The commission will disburse from the recovery fund specifically when a consumer applies for payment. This situation typically arises when a consumer has suffered a financial loss due to the misconduct of a licensed real estate professional, such as fraud, misrepresentation, or other illegal activities related to real estate transactions.

The recovery fund is designed as a consumer protection mechanism, allowing individuals who have been wronged by a licensee to seek compensation up to a certain limit. This disbursement is contingent upon the consumer submitting a valid application that proves their claim, ensuring that the fund is used appropriately to aid those who have been wronged in real estate dealings.

This essential function underscores the purpose of the recovery fund, which is to provide recourse for consumers. While issues involving licensees failing to comply with the law or receiving complaints may prompt investigations or disciplinary actions, they do not directly lead to disbursements from the recovery fund unless a consumer takes the necessary steps to seek payment.