Mandatory Suspension

Automatic Suspension: If the Recovery Fund pays out any money because of your bad actions, your license is automatically suspended.Reinstatement: You cannot get your license back until you repay the fund the full amount plus interest.The EDO Exception (The Broker's Shield) - There is ONE special scenario where the fund pays more than usual. The Situation: A broker requests an Escrow Disbursement Order (EDO) from the FREC. The FREC tells the broker, "Give the money to the Seller." The broker obeys. The Buyer then sues the broker and a judge rules the broker was wrong. The Protection: Because the broker was just following FREC's orders, the Recovery Fund will pay the judgment.Bonus Coverage: In this specific EDO case, the fund WILL pay for the broker's attorney fees and court costs. This is the only time the fund covers legal fees.