Real Estate Recovery Fund
A Texas account that reimburses a member of the public who holds an uncollectible court judgment against a license holder for certain violations.
Quick flashcard
What does Real Estate Recovery Fund mean on the Texas real estate exam?
Answer: A Texas account that reimburses a member of the public who holds an uncollectible court judgment against a license holder for certain violations.
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Real Estate Recovery Fund definition
The Texas Real Estate Recovery Trust Account can reimburse a member of the public who wins a court judgment against a license holder for specified violations in a real estate transaction, when that judgment cannot be collected from the license holder. Payments are subject to statutory caps per transaction and per license holder.
After the account pays a claim, the license holder's license is suspended until the license holder repays the account in full, plus interest.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
TREC Duties & Powers (3 of 40 Texas State Law)
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Try 5 free questionsThis definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.