Real Estate Recovery Fund is

• A. A fund administered by the NSREC to compensate consumers who suffer financial loss as a result of fraud or breach of trust by an industry member.
• B. A fund to subsidize marketing campaigns
• C. A fund for mortgage insurance
• D. A fund for housing scholarships

Answer: (A)

The Real Estate Recovery Fund exists to protect the public by providing compensation when a real estate licensee commits fraud or breaches trust and a consumer suffers a financial loss. It is administered by the Nova Scotia Real Estate Commission, and payments from the fund come after a finding of liability and when the licensee cannot satisfy the claim themselves. This makes the fund a last-resort remedy that helps maintain trust in real estate transactions by ensuring victims can recover at least a portion of their losses.

It isn’t meant for funding marketing campaigns, mortgage insurance, or scholarships, so those options don’t fit.