law
Real Estate Recovery Account (Rhode Island)
Rhode Island's Real Estate Recovery Account compensates consumers harmed by a licensee's fraud, misrepresentation, or deceit. The claimant must first win a superior court judgment filed within two years of the cause of action, notify DBR, and show the licensee's assets are insufficient; a spouse cannot recover. The cap is $50,000 per licensee, and it never pays commissions between licensees. New licensees pay $25 into it. Payment automatically revokes the license until repaid with 12% interest, and bankruptcy does not erase the debt.
- Exam tip
- Three numbers: $50,000 per licensee, two years to sue, 12% interest. If the December 31 balance is under $200,000, every licensee pays an extra $25 at renewal.
- Example
- Buyers hold an uncollectible $70,000 judgment against a salesperson who hid basement water; the account pays at most $50,000 and his license is revoked.
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Last verified: 2026-10-23