law
Real Estate Education, Research and Recovery Fund (Kentucky)
Kentucky's fund under KRS 324.400 to 324.420 that compensates consumers for licensee fraud and funds education and research. Licensees pay up to $60 into it at renewal and original application. A consumer files a complaint with the Commission rather than first winning a lawsuit; after a fraud finding, the licensee has 20 days to pay before the fund pays. Caps are $20,000 per claimant and $50,000 per licensee. The licensee's license is suspended until the fund is repaid with 10% interest.
- Exam tip
- Kentucky recovery runs through a Commission hearing with a finding of fraud; a separate civil judgment is not required. Another licensee fighting over a commission split is not an aggrieved party.
- Example
- Three buyers lose $30,000, $15,000 and $12,000 to one sales associate; the fund pays $20,000, $15,000 and $12,000, totaling $47,000, under the $50,000 per-licensee cap.
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Last verified: 2026-10-23