in real estate, fund that requires licensees to contribute, then reimburses aggrieved persons who are unable to collect from brokers for wrongdoings. A recovery fund is generally administered by a state Real Estate Commission.
generally administered by the real estate commission. Requires licensees to contribute, then reimburses aggrieved persons who are unable to collect from brokers for wrongdoings.
Example: A typical state's recovery fund law requires all new licensees to contribute $10 to the fund. Anytime the fund account balance drops below $500,000, all licensees will be assessed. Payments from the fund to an aggrieved person may not exceed $10,000; total payments on behalf of any licensee may not exceed $25,000. The recovery fund pays only when the broker does not.
