law
Arkansas Real Estate Recovery Fund
A fund under Ark. Code §§17-42-401 to 409 that pays people harmed by a licensee's violation of the License Law or rules when the licensee does not pay. Unusually, claims run through the Commission's disciplinary hearing, so no separate court judgment is needed; the fund pays if the licensee has not paid within 30 days of the final order and no appeal is pending. Caps are $25,000 per violation or series and $75,000 per licensee. Only actual damages are paid, and the licensee is suspended until repaying.
- Exam tip
- '25 a pop, 75 to stop.' Punitive damages and interest on damages are never paid, and the licensee stays suspended until repaying with interest of up to 10% per year.
- Example
- A salesperson owes three buyers $30,000, $20,000, and $40,000 from separate deals. The fund pays $25,000, $20,000, and $25,000, totaling $70,000, under the $75,000 cap.
Related terms & state variants
Sources
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Last verified: 2026-10-23