The purpose of the Real Estate Education, Research and Recovery Fund is to compensate a person who suffered out-of-pocket losses due to a licensed real estate broker, salesperson, or closing agent’s fraudulent, deceptive or dishonest practices, or conversion of trust funds. The action must be an activity that required a license. In addition, the real estate broker, salesperson, or closing agent must have been licensed at the time of the fraudulent action.
Minnesota Statute section 82.86 is applicable to the recovery fund. The recovery fund is limited. Specific rules and requirements determine whether or not the applicant qualifies for reimbursement from the fund. The statute also describes the procedure for filing a claim.
How the Fund Works
The Commissioner of Commerce has the responsibility to maintain the Real Estate Education, Research and Recovery Fund. According to state law, each licensed real estate broker, salesperson, and closing agent in Minnesota must pay into the recovery fund each year. The Department reviews each application to determine if it meets the statutory requirements. There is no guarantee a claim will be paid.