Definition of "Recovery fund"

Sonya Burnett real estate agent
Sonya Burnett, Real Estate Agent RE/MAX East

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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