law
Real Estate Recovery Fund (Pennsylvania)
Pennsylvania's Real Estate Recovery Fund compensates consumers who win a final court judgment against a licensee based on fraud, misrepresentation, or deceit in a real estate transaction and cannot collect it after exhausting remedies. The claimant must apply to the Commission within one year after court proceedings end. It pays up to $20,000 per claim and $100,000 total per licensee, prorated if claims exceed that. New licensees pay $10 into it. Payment automatically suspends the license until the fund is repaid with 10% annual interest.
- Exam tip
- Numbers: $20,000 per claim, $100,000 per licensee, $10 fee, one year to apply, 10% interest. The judgment must rest on fraud, misrepresentation, or deceit, not a simple contract dispute.
- Example
- Six buyers each hold capped $20,000 claims against one salesperson, totaling $120,000; each receives $16,666.67 from the $100,000 limit.
Related terms & state variants
Sources
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Last verified: 2026-10-23