Temple

The Real Estate Commissioner appeals from an order directing him to pay $20,000 to Harold and Alta Temple from the Real Estate Recovery Account. (Bus. & Prof. Code, § 10470 et seq.) The only issue is the amount unpaid on the Temples’ judgment against David S. Kerwin, a real estate licensee “. . . which represents an actual and direct loss to the [Temples] in the transaction.” (§ 10471, subd. (a).) We reverse with directions.

On April 9, 1987, following a court trial, the Temples obtained a superior court judgment against Kerwin for intentional fraud committed as a real estate licensee during 1980. The Temples had alleged that Kerwin and other real estate licensees, not named as defendants, had fraudulently induced them to invest $18,000 in a note secured by a deed of trust on property which was already fully encumbered. The Temples made claims against the other real estate licensees and the assignors of the deed of trust and note in federal bankruptcy court. They obtained settlements in a total amount of $15,000.

Interest on the note, which was dated October 31, 1980, was to be paid from November 12, 1980, at 30 percent per annum. The Temples received the first…