Recovery Fund

The Real Estate Recovery Fund was established for the benefit of any person aggrieved by any act, representation, transaction or conduct of a licensed real estate or cemetery broker or real estate or cemetery salesperson that violates Arizona Real Estate Law. 

Applications to the Real Estate Recovery Fund may be mailed or delivered to the Arizona Department of Real Estate, attention Recovery Fund Administrator, or submitted online through our Message Center

Frequently Asked Questions - Recovery Fund

Statute: A.R.S. §32-2186 through §32-2193.02

The Arizona Real Estate Recovery Fund is administered by the Commissioner of the Arizona State Real Estate Department. It is funded from a surcharge to licensee fees.

The Recovery Fund is designed as a fund of last resort to benefit individuals of the public who have been aggrieved by any act, representation, transaction or conduct of a real estate licensee (broker or salesperson) who violated the Arizona real estate laws. The aggrieved party must attempt to collect payment awarded in a judgement from the licensee prior to filing for payment from the Recovery Fund.
 

No later than 5 years after the cause of action, an action for judgement that results in an Order for Payment must be begun. Actual and direct out of pocket costs as identified in the Judgement may be paid. Attorney fees and other costs may be paid if stipulated in the judgement. There are limits to the amount of pay out from the Recovery Fund on behalf of a licensee.

  • $30,000.00 per transaction regardless of the number of people with claims.
  • $90,000.00 total per licensee.

  • Obtain and record a judgment (civil or criminal) obtained against all parties involved in the transaction, including, but not limited to the Arizona real estate licensed salesperson and their employing broker (not a corporation, partnership or fictitious entity), and provide the Department an original certified recorded copy.  
  • The judgment must include the employing broker.  
  • Exhaust all efforts to collect the money awarded in the judgment (pursuant to A.R.S § 32-2188) from all involved parties, and document all efforts to be provided to the Department.  
  • Download and complete the Recovery Fund Application available on www.azre.gov  
  • Notify the Arizona real estate licensee(s) that a claim has been, or will be, filed against them from the Recovery Fund.  

 

  • Proof of Service to the licensee is required in one of the following forms:
  • Obtain a writ of garnishment or execution against the Arizona real estate licensee through the court.  
  • Provide all requested documentation and/or any additional documentation to support your application