California-specific tool
Consumer Recovery Account claim guide
The account is a last-resort reimbursement path for certain direct losses caused by a real estate licensee. It is not general transaction insurance, and winning a case does not make payment automatic.
1
Qualifying misconduct
The loss must come from intentional fraud, misrepresentation, deceit, or conversion of trust funds in a transaction requiring a real estate license.
2
A final result
The claimant generally needs a final civil judgment, qualifying arbitration award, or criminal restitution order against the licensee.
3
Collection efforts
The claimant must make the reasonable asset search and collection efforts the statute requires, including pursuing other liable and able-to-pay parties when applicable.
4
A timely application
DRE must receive the application within one year after the judgment or restitution order becomes final.
Current statutory limits
$50,000
Maximum for one transaction
$250,000
Maximum attributable to one licensee
What the account does not replace
Not transaction insurance
A poor investment, market decline, ordinary contract dispute or negligence by itself is not enough. The loss and misconduct must satisfy the Recovery Account statute.
Not an automatic judgment payment
The account pays an eligible actual and direct out-of-pocket loss within statutory limits. A judgment amount can include items the account does not reimburse.
Not a first collection step
The claimant must make the required asset search and reasonable collection efforts, including against other liable parties who can pay when the statute requires it.
Not open-ended
DRE must receive the application within one year after the qualifying judgment, award or restitution order becomes final.
This is a legal process, not an exam-only checklist
Eligibility turns on the judgment, the evidence standard, collection efforts, timing, and statutory exclusions. Use DRE's application materials and obtain legal advice for a real claim. This page is an educational map, not a finding that anyone qualifies.
Common questions
What does the California Consumer Recovery Account cover?
It may reimburse an actual and direct loss left unpaid after a final judgment, qualifying arbitration award, or criminal restitution order against a real estate licensee. The loss must arise from intentional fraud, misrepresentation, deceit, or conversion of trust funds in a transaction requiring a real estate license, and every statutory condition still has to be met.
How much can the Consumer Recovery Account pay?
For applications filed on or after January 1, 2009, Business and Professions Code section 10474 caps payment at $50,000 for one transaction and $250,000 for one licensee. The account pays eligible actual and direct loss, not automatically the whole judgment.
How long do you have to file a Consumer Recovery Account claim?
DRE must receive the application no later than one year after the judgment or criminal restitution order becomes final. The application can be delivered as the statute and DRE process allow, including through DRE's electronic application system.
Does a Consumer Recovery Account payment automatically suspend the license?
Not in every payment case after the 2026 change. Automatic suspension under section 10475 applies when the final judgment was established by clear and convincing evidence, or DRE determined that the claimant supplied clear and convincing evidence, of fraud, misrepresentation, deceit, or conversion of trust funds.