What is the limit for a single claim from the Transaction Recovery Fund?

The limit for a single claim from the Transaction Recovery Fund in Virginia is set at $20,000. This fund is designed to protect consumers who suffer financial losses due to the actions of a licensed real estate agent or broker who has acted fraudulently or illegally.

Having a specific limit discourages reckless behavior by real estate professionals while still offering a safety net for consumers. The amount of $20,000 is a balancing point, providing significant coverage for an individual claim without overextending the fund’s resources.

Understanding this limit is important for both real estate professionals and consumers, as it highlights the protection afforded to consumers while establishing the financial responsibilities of real estate licensees. It also underlines the need for agents and brokers to conduct their business with ethical standards to avoid claims against them in the first place.