law

Arizona Real Estate Recovery Fund

A last-resort fund under A.R.S. 32-2186 to 32-2193 for consumers harmed by a licensee's violation of Arizona real estate law, usually fraud or misrepresentation. The claimant must obtain a judgment (suit started within five years), try to collect from the licensee and employing broker, and apply within two years after the judgment is final. Limits are $30,000 per transaction and $90,000 per licensee. When payment is ordered, the licensee's license is automatically terminated until the fund is repaid with interest.

Exam tip: '30 a deal, 90 a heel.' Spouses of the licensee cannot recover, and the license is terminated on payment, not merely put on probation.
Example: Three buyers in one deal each hold $20,000 judgments against a salesperson. The fund pays at most $30,000 total, split among them.

1. Before applying to the Arizona Real Estate Recovery Fund, a consumer generally must:

Answer & explanation

Answer: B. The Fund is a fund of last resort. A.R.S. §32-2188 requires a judgment (court judgment, criminal restitution order, or confirmed arbitration award) and diligent collection efforts, including against the employing broker's assets.

Related terms & state variants

Arizona Department of Real Estate (ADRE) (AZ)misrepresentation recovery fund

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23