law

Real Estate Recovery Fund (Louisiana)

Louisiana's last-resort fund under R.S. 37:1460 and following for consumers who win a court judgment against a licensee and cannot collect it. It pays actual damages only, not attorney fees, court costs or punitive damages. Limits are the lesser of the unpaid judgment or $20,000 per claim, $20,000 total per transaction, and $50,000 lifetime per licensee. The claimant must apply within 180 days after the judgment becomes final. Any payment automatically revokes the licensee's license.

Exam tip
Read whether the question asks per claim, per transaction or per licensee. Attorney fees and punitive damages are never paid, and payment means automatic revocation.
Example
A buyer ($18,000) and a lender ($12,000) are both harmed in one sale; together they can recover only $20,000 from the fund, for example $12,000 and $8,000.

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Last verified: 2026-10-23