The Alaska Real Estate Surety (Recovery) Fund
Alaska maintains a surety/recovery fund to protect consumers from uncompensated licensee misconduct. This chapter covers the fund's purpose, the claim prerequisites, and its effect on the licensee.
Purpose
The Alaska Real Estate Surety Fund reimburses consumers who obtain an unsatisfied final court judgment against a licensee for conduct that violated AS 08.88, such as fraud or misappropriation of trust funds. It is a consumer-protection remedy, not a source of Commission salaries, guaranteed commissions, or school grants.
Claim Prerequisites and Caps
A claimant must first obtain a final court judgment against the licensee and show it cannot be satisfied. Statutory caps limit the amount payable per transaction and per licensee, making the fund a last resort after the consumer has exhausted collection efforts against the licensee.
Effect on the Licensee
When the fund pays a claim on a licensee's behalf, the Commission suspends or revokes that licensee's license until the fund is reimbursed. This preserves the fund's balance and deters the misconduct that gives rise to claims.