law

Alabama Real Estate Recovery Fund

A last-resort fund under §34-27-31 that pays people who win a court judgment against an Alabama licensee for fraud, misrepresentation, deceit, or similar violations and cannot collect. Original license applicants pay a $30 fee, and active licensees may be assessed $30 if the balance falls below $500,000. Caps are $25,000 per transaction and $50,000 per licensee. The claimant must notify the Commission by certified mail when the lawsuit starts. A licensee whose claim is paid may lose all licenses until repaying with 12% interest.