Recovery Fund
In real estate, a recovery fund refers to a financial resource established by a state real estate regulatory agency to compensate consumers who have suffered financial losses due to the actions of licensed real estate professionals, such as real estate agents or brokers. The recovery fund provides a form of protection for consumers by reimbursing them for certain types of damages resulting from fraudulent, dishonest, or negligent conduct on the part of licensed real estate professionals.
In Virginia, laws related to the recovery fund in real estate are primarily governed by the Virginia Real Estate Board, which oversees the licensing and regulation of real estate professionals in the state. The Virginia Real Estate Board administers a recovery fund program to provide compensation to consumers who have been harmed by the actions of licensed real estate agents or brokers.
The Virginia Code authorizes the establishment and operation of the recovery fund and outlines the eligibility criteria, procedures, and limitations for filing claims and receiving compensation. Specific statutes governing the recovery fund in Virginia include §§ 54.1-2136 through 54.1-2140 of the Virginia Code.
Consumers who believe they have suffered financial losses as a result of the actions of a licensed real estate professional in Virginia may be eligible to file a claim with the recovery fund. Eligible damages may include fraud, misrepresentation, conversion of funds, breach of fiduciary duty, or other wrongful conduct on the part of the licensee.
It’s important for consumers to understand that the recovery fund is intended to provide limited financial assistance and may not fully compensate for all losses incurred. Additionally, certain conditions and limitations may apply to the filing and processing of claims, including deadlines for filing claims and maximum reimbursement amounts.
Consulting with legal professionals or contacting the Virginia Real Estate Board can provide consumers with guidance and assistance in understanding their rights and options regarding the recovery fund and seeking compensation for financial losses suffered in real estate transactions.
