law
Real Estate Education and Recovery Fund (North Carolina)
North Carolina's fund under G.S. 93A-16 to 93A-24 that pays victims holding an uncollectible judgment against a broker for wrongful acts such as fraud, misrepresentation or conversion of trust money. The claimant must apply within one year after all proceedings on the judgment end. It pays no more than $50,000 per transaction, and payments based on one licensee may not exceed $25,000 in a calendar year or $75,000 in total. It excludes punitive damages, interest and court costs. A payment automatically suspends the broker's license until repaid with interest.
- Exam tip
- Know $50,000 per transaction, $25,000 per licensee per year and $75,000 per licensee total, plus automatic suspension.
- Example
- A broker converts $60,000 of earnest money from one deal with two buyers; the fund's total liability for that transaction cannot exceed $50,000.
Related terms & state variants
Sources
Source verification pending. Confirm current requirements with your state regulator.
Last verified: 2026-10-23