Real Estate Recovery Funds Law and Legal Definition

The real estate recovery fund means funds used for the reimbursement of aggrieved persons who suffer monetary damages due to acts committed by licensed real estate brokers or salesmen. Provided such act must be performed by a broker or salesman. Hence, it was established by the legislature to make over funds to victims of fraud, misrepresentation and deceit committed by a real estate licensee, where the victims are otherwise unable to recover on a court judgment. Various jurisdictions have established statutory real estate recovery funds to protect the public by covering certain types of judgments against licensed real estate brokers, their agents, and salespersons in some cases, when the aggrieved party would otherwise go unpaid.