law

California Real Estate Recovery Account

A fund under Business and Professions Code §10470 et seq. that reimburses consumers who cannot collect a final judgment, arbitration award, or restitution order against a licensee based on intentional fraud or conversion of trust funds in a licensed transaction. The claimant must try to collect and apply within one year after the judgment is final. Limits are $50,000 per transaction and $250,000 per licensee; only actual out-of-pocket loss is paid. Payment automatically suspends the license until repaid with interest.