Seller Octavio enters into an exclusive listing agreement with Broker Waters. Agent Jackson, who is employed by Waters, prepares marketing materials to advertise the property. The marketing materials indicate the property features multiple large structural additions and is in good condition. Buyer Lupe sees the advertising and contacts Jackson. Jackson shows Lupe the property, indicating the roof is brand new and that the additions were built to code and constructed with the proper permitting. Based on these representations, Lupe submits an offer to purchase the property to Octavio. One day after the close of escrow, Jackson provides a Transfer Disclosure Statement (TDS) to Lupe which indicates the roof is 15 years old and none of the additions are properly permitted. Lupe attempts to recover from Waters, Jackson and Octavio for fraud. Lupe is awarded damages from Octavio but is unable to recover from Waters and Jackson who have become insolvent. What remedy is the best option for Lupe?
The Real Estate Recovery Fund.
The Real Estate Recovery Fund, also known as the Consumer Recovery Account, is available to individuals who have obtained a final-court judgment against a real estate licensee for losses caused while acting as an agent and are unable to recover the judgment from the licensee. Note the question provides extraneous details and distractions from the core issue of the Real Estate Recovery Fund. This question is an excellent example of a long story which yields a simple answer.