Virginia Real Estate License Law Practice Test

The Transaction Recovery Fund is designed to protect consumers who have suffered a financial loss due to the improper actions of a real estate licensee. Licensees themselves are not eligible to receive payment from this fund because it is intended to compensate consumers—not professionals—who have been harmed in real estate transactions. This ensures that the fund is utilized to promote trust and safety in the real estate market by providing recourse to consumers who may have been defrauded or wronged. Neighbors, residential property owners, and commercial property owners can qualify for compensation from the fund under certain circumstances where they have sustained losses due to a licensee’s actions. In contrast, since licensees are already in the position of receiving commissions and earnings through their work, allowing them access to the fund would undermine its purpose and function.