What source does NOT contribute to the Recovery Fund?

The correct answer indicates that excess funds transferred from the state treasury at the end of each year do not contribute to the Recovery Fund. The Recovery Fund is primarily supported through more direct and specific sources designed to ensure its sustainability and effectiveness in providing relief to individuals harmed by the actions of licensed real estate professionals.

License application fees from REALTORS®, fines collected from disciplinary actions, and contributions from brokerage firms are all integral to the funding of the Recovery Fund. These sources are intended to accumulate funds specifically for compensating consumers when a broker or agent causes financial loss due to misconduct or malpractice. In contrast, excess funds from the state treasury, while possibly useful for various state needs, do not have a dedicated role in supporting the Recovery Fund, as they are not consistently earmarked for this specific purpose.

This distinction highlights the funding mechanisms that are purposefully established to protect consumers in real estate transactions, ensuring there is a reliable source to draw from when claims arise.