Published October 24, 2026
The Virginia Real Estate Transaction Recovery Fund can pay a person who has an unpaid court judgment against a Virginia-licensed real estate broker or salesperson for fraud, up to $20,000 per claimant per transaction under Code of Virginia 54.1-2116. It is a last step after a court judgment, not a first step after a bad deal, and DPOR says filing a claim does not guarantee payment.
This guide walks through who can claim, what counts as qualifying conduct, the order of steps and the dollar limits, all from the Code and from DPOR. It is general information, not legal advice. Deadlines are short, so talk to a Virginia real estate attorney early. The rules apply to purchases and sales in the city of Richmond, Henrico County, Chesterfield County and every other Virginia locality. If your problem is a deposit dispute, start with our guides on who holds your earnest money and how a broker must handle a deposit when a purchase ends early.
What the fund is, in the Code’s own terms
The fund comes from the Virginia Real Estate Transaction Recovery Act, Article 2 of Chapter 21 of Title 54.1. Section 54.1-2112 defines the terms that matter. A “regulant” is a person or entity licensed by the Real Estate Board as a broker or salesperson. “Improper or dishonest conduct” includes only the wrongful and fraudulent taking or conversion of money, property or other things of value, or material misrepresentation or deceit. A “claimant” is someone with an unsatisfied judgment against a regulant who has filed a verified claim.
Read that definition closely. It does not cover every disagreement with an agent, a slow response or a poor outcome. It covers fraud-type conduct. The conduct also has to occur while the person was a regulant and in connection with a sale, lease or management of real property where the regulant acted as a broker or salesperson, not as a principal or on his own account (54.1-2114).
Who cannot claim
Section 54.1-2114 bars four groups: regulants, the personal representative of a regulant, the spouse or child of the regulant against whom the judgment was awarded (or that person’s personal representative), and lending or financial institutions and anyone whose business involves the construction or development of real property. If you are in one of those groups, the fund is not available to you for that judgment.
The steps, in the order the statute puts them
- Get a final judgment. A court of competent jurisdiction in Virginia must award a final judgment against the licensee for improper or dishonest conduct as the Act defines it. Bankruptcy orders that declare a debt nondischargeable, or that extinguish a claim with no or only partial distribution, count as judgments under the definition. An order of dismissal does not.
- Serve the Board. If you sue a licensee, you serve a copy of the complaint on the Board by certified mail or the equivalent, and send the Board later pleadings the same way. The statute says missing this step is not a bar to recovery if you are otherwise entitled (54.1-2116, subsection F), but do not count on that.
- Look for assets. Before you file a claim, you must make a reasonable attempt at debtor’s interrogatories to learn whether the judgment debtor has assets, including listings and commissions due, and take all legally available action to sell or apply any assets disclosed.
- File a verified claim on time. The claim is a completed application on the Board’s form, attested to before a notary, with supporting documents. It must reach the Director within 12 months after the final judgment from which no further right of appeal exists. If the debtor is in bankruptcy, you file with the bankruptcy court first, then with the Board within 12 months of discharge or dismissal if the result does not satisfy your claim.
- The Department reviews it. If a prima facie case appears, the licensee gets notice and a chance to ask for an informal fact-finding conference within 30 days, with three days added for mail. If none is requested, the Department presents the claim to the Board with a recommendation to pay.
- The Board decides. If the statutory conditions are met, the Board issues a directive ordering payment of the unpaid judgment amount, subject to the limits below. The Board’s findings are a case decision, and judicial review follows the Administrative Process Act.
Get the Richmond closing-timeline checklist
Tell us you want the checklist and we will send a closing timeline that shows the dates when disclosures, deposits and closing documents change hands, so you have a clear paper trail of who delivered what and when.
The dollar limits, in one table
| Limit | Amount | Source |
|---|---|---|
| Maximum for one claimant, one licensee, one transaction | $20,000 | 54.1-2116 B |
| All claimants combined, one licensee, one transaction | $50,000, prorated if claims exceed it | 54.1-2116 A |
| All claims against one licensee across more than one transaction | $100,000 per biennial license period (periods end June 30 of even-numbered years), prorated if exceeded | 54.1-2116 C |
| Excluded from the judgment amount | Interest and punitive damages | 54.1-2116 D |
| May be included | Court costs and attorney fees | 54.1-2116 D |
The Board may hold payments for up to one year if it believes more claims will arise from the same transaction or licensee. If the fund is ever too small to cover claims, payments go in the order claims were filed. The practical point for a claimant: a $60,000 judgment does not mean a $60,000 recovery. Plan around the $20,000 ceiling.
What happens to the licensee afterward
After the Director pays a claim, 54.1-2119 requires the Board to revoke the licensee’s license immediately. The person cannot apply for a broker or salesperson license again until the amount paid from the fund is repaid in full, with interest at the judgment rate from the date of payment. Separately, DPOR’s complaint page says DPOR cannot require a refund or other personal remedy, which is why a court judgment is the route to the fund. Our guide to checking a Virginia license on DPOR covers the complaint process and the lookup in more detail.
Prevention is cheaper: four habits before you sign
- Look up the agent and firm on DPOR and keep a dated screenshot.
- Read what the contract says about who holds your deposit, and confirm it in writing.
- Keep every notice and receipt in one folder.
- Read the buyer agency agreement before you sign it, and ask about anything unclear.
If you want to start your search from real listings, a saved property search with Mission Realty is a place to begin. Our buyer page explains how we work with buyers, and our preferred lenders page lists lenders if you need to plan financing around your contract dates.
Ask for the closing-timeline checklist
The same offer, restated: request our Richmond closing-timeline checklist and see when each document, deposit and disclosure should change hands in your purchase.
Frequently asked questions
Can I claim from the fund without a court judgment?
The statute describes claims by a person who has been awarded a final judgment in a Virginia court against a licensed broker or salesperson. Code of Virginia 54.1-2114 ties the claim to that judgment, so talk to a Virginia real estate attorney about the judgment step before anything else.
Is the fund paid for by taxpayers?
No. DPOR says on its Recovery Funds page that both the Contractor and Real Estate Recovery Funds are supported entirely by assessments paid by licensees, not by any tax revenues. It also says filing a claim does not guarantee payment.
What deadline applies?
A verified claim must be filed with the Director no later than 12 months after the date of entry of the final judgment from which no further right of appeal exists. If the judgment debtor filed bankruptcy, the claim to the Board must be received within 12 months of the date of bankruptcy discharge or dismissal (54.1-2114). These are short windows, so calendar them the day you get a judgment.
Does the fund pay interest or punitive damages?
No. 54.1-2116 excludes from the judgment amount any sums that represent interest or punitive damages. A claim may include court costs and attorney fees.
What happens to a licensee after the fund pays a claim?
Under 54.1-2119, the Board must immediately revoke the license of the licensee whose improper or dishonest conduct resulted in the payment. That person cannot apply for a broker or salesperson license again until the amount paid from the fund is repaid in full, plus interest at the judgment rate from the date of payment.
Does the fund cover someone who was never licensed?
The Act defines a regulant as a person or entity licensed by the Real Estate Board as a broker or salesperson (54.1-2112). Someone who is not licensed does not fit that definition. That is one reason to run a license lookup before you hire anyone, as our guide to checking a Virginia license on DPOR explains.
Can the licensee’s spouse or child claim from the fund?
No. 54.1-2114 bars claims by a regulant, a regulant’s personal representative, the spouse or child of the regulant against whom the judgment was awarded (or that spouse or child’s personal representative), and lending or financial institutions or anyone whose business involves construction or development of real property.
If the fund is short of money, who gets paid first?
Claims are paid in the order they were filed with the Board once the fund can cover some or all of them (54.1-2116, subsection E). The Board may also withhold payments for up to one year when it has reason to believe more claims may arise from the same transaction or the same licensee.
