What is a required condition regarding the funds in the recovery fund?

The requirement for the recovery fund to have a balance of at least $1 million ensures that there are sufficient resources available for compensation in cases where consumers have valid claims against licensed real estate professionals. This amount acts as a safeguard, promoting confidence in the real estate market by providing a financial safety net for consumers who suffer financial losses due to wrongful actions in real estate transactions. Maintaining this level of funding is crucial for the fund's ability to fulfill its purpose effectively.

In a practical sense, if the balance were allowed to drop significantly lower, it could jeopardize the fund's ability to adequately address claims, potentially leaving consumers vulnerable and undermining trust in the real estate profession. Therefore, the stipulation of a $1 million balance is a foundational element of ensuring the recovery fund can serve its intended protective role in the real estate market.