law

Idaho Real Estate Recovery Fund

A fund under Idaho Code 54-2069 to 54-2078 that pays consumers holding a final court judgment against a licensee for fraud, misrepresentation, or deceit in a licensed transaction who cannot collect. Licensees pay an extra $20 when obtaining or renewing a license. After appeals end, the claimant petitions the court that entered the judgment and serves the Commission. The fund pays no more than $10,000 per licensee per calendar year, only for unpaid actual damages. Payment automatically suspends the license until repayment with interest.

Exam tip: '20 in, 20 max, 10 out.' The fund requires a judgment based on fraud, misrepresentation, or deceit, not ordinary negligence.
Example: Two buyers win fraud judgments of $14,000 and $6,000 against one salesperson in the same year. The fund's total exposure is $10,000, shared through interpleader.

1. What must a claimant have before seeking payment from the Idaho Real Estate Recovery Fund?

Answer & explanation

Answer: C. 54-2071 requires a final judgment grounded in fraud, misrepresentation, or deceit in a licensed transaction, with collection efforts exhausted. A Commission disciplinary finding alone does not open the fund.

Related terms & state variants

fraud misrepresentation recovery fund

Sources

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

Last verified: 2026-10-23