Real Estate Education and Recovery AccountTennessee Real Estate Commission
- The real estate education and recovery account (“the account”) was established in order to compensate aggrieved members of the public who have been adjudged to have suffered monetary damages as a result of the violation of the Tennessee Real Estate Broker License Act of 1973 or any rules promulgated thereunder by a licensed broker, affiliate broker, or time-share salesperson.
- The account is maintained by the Tennessee Real Estate Commission (“the Commission”) with a minimum balance of five hundred thousand dollars ($500,000.00).
- The maximum amount of possible recovery under the account is fifteen thousand dollars ($15,000.00) per transaction. This amount represents the maximum liability of the account for a transaction, regardless of the number of aggrieved persons or real estate parcels associated with the transaction. The liability of the account for the acts of a broker, affiliate broker or time-share salesperson shall be limited to an aggregate amount of thirty thousand dollars ($30,000).
- At the commencement of any action which may result in a judgment requiring collection from the account, the aggrieved person commencing the action is required to promptly notify the Commission to that effect in writing via certified mail, return receipt requested.
- An aggrieved person is eligible to recovery from the account when that aggrieved person has obtained a valid judgment in a court of competent jurisdiction and all or part of the judgment is unpaid after sixty (60) days after all proceedings have been terminated (including reviews and appeals) and the person has exhausted all remedies at law to satisfy the judgment.
- Once a judgment has been obtained, proceedings terminated and attempts at obtaining payment of the judgment have been made, the aggrieved person may apply to the court which rendered the judgment for an order directing payment from the account in an amount representing the unpaid judgment. If the court is satisfied that all or part of the judgment has not been paid and all required attempts to obtain payment of the judgment have been made by the aggrieved person, the court will enter an order directing payment from the account.
- Upon the order of a court of competent jurisdiction, the aggrieved person may recover actual or compensatory damages (not including interest and costs) from the account.
- This is general information only and is not legal advice. The Commission cannot provide you with legal advice. More details regarding the account are specified at T.C.A. § 62- 13-208. If you need greater interpretation or assurance with regard to your understanding of the account or require assistance with applying the law to your specific circumstances, hire an attorney to seek assistance.