Recovery Fund


Definition of "Recovery fund"

Gary Scott
  Home Team of America

A fund constituted in certain states to compensate aggrieved individuals who incurred
losses in a real estate transaction associated with a licensed real estate broker or agent.
Normally, in states having a recovery fund, licensed real estate brokers and agents are assessed a
charge as a part of their registration fee which is contributed to the recovery fund. Following an
investigation and hearing, if the state's real estate commission awards a settlement to a
complainant, the recovery fund's assets are debited should the implicated real estate broker or
agent fail to provide a recovery.


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