Who cannot make a claim for money from the Recovery Fund?

The Recovery Fund is designed to protect individuals who are harmed by the actions of licensed real estate professionals, specifically in transaction-related matters. A licensee, or a licensed real estate agent, cannot make a claim against the Recovery Fund because the fund is intended to compensate unsatisfied claims of the public against real estate professionals.

This means that consumers, such as buyers, sellers, and mortgagors, who may have suffered from fraud, misrepresentation, or other wrongful acts committed by a licensed agent can seek recovery from the fund. However, because licensees are the ones who are regulated and hold the responsibility to act ethically in their dealings, they are excluded from making claims. This exclusion helps maintain the integrity of the professional standards within the real estate industry.

In contrast, buyers in a subdivision, sellers of a residence, and mortgagors are all members of the public who may experience losses due to the malpractice of a real estate professional, making them eligible to file a claim against the Recovery Fund.