law

Virginia Real Estate Transaction Recovery Fund

The Virginia Real Estate Transaction Recovery Fund pays part of uncollectible Virginia court judgments against licensees for improper or dishonest conduct while acting as a broker or salesperson. Claimants must try to collect, including debtor's interrogatories, and file a verified claim within 12 months after the judgment becomes final. Limits are $20,000 per claimant per transaction, $50,000 per transaction, and $100,000 per licensee per biennial period. The licensee's spouse or child and lenders or developers cannot claim. The Board must immediately revoke the license once the fund pays.

Exam tip: '20-50-100, then you're done.' Also know the 12-month filing deadline and the $400,000 minimum balance. Interest and punitive damages are not recoverable.
Example: Four tenants with judgments of $30,000, $15,000, $10,000, and $5,000 from one property are capped to $20,000, $15,000, $10,000, and $5,000, totaling the $50,000 per-transaction cap.

1. What is the maximum one claimant may recover from the Virginia Real Estate Transaction Recovery Fund for a single transaction?

Answer & explanation

Answer: D. Section 54.1-2116 caps each claimant at $20,000 per transaction. $50,000 is the cap for all claimants in one transaction, and $100,000 is the per-licensee cap per biennial period.

Related terms & state variants

fraud license revocation recovery fund Virginia Real Estate Board (REB) (VA)

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23