VIRGINIA REAL ESTATE TRANSACTION RECOVERY FUND
Links to topics on this page
Who Is Eligible To File A Claim?
Limitations
Revocation of License
Source of Funding
How To File A Claim
Forms, Brochures and Frequently Asked Questions (FAQ)
The Virginia Real Estate Transaction Recovery Act became effective July 1, 1980. The Act provides relief to consumers who have incurred losses through the improper and dishonest conduct of a licensed real estate broker or real estate salesperson. The Recovery Fund is supported entirely by assessments paid by real estate licensees, not by any tax revenues. Filing a claim does not guarantee payment.
Who Is Eligible To File A Claim?
A person who has been awarded a judgment in a court of competent jurisdiction in the Commonwealth of Virginia against a licensed real estate broker or real estate salesperson ("the regulant") may be eligible to file a claim.
The judgment must be obtained against an individual or entity who is licensed by the Commonwealth of Virginia. The judgment must be based upon the improper or dishonest conduct of the regulant. A claimant cannot be denied recovery from the Fund due to the fact that the judgment does not contain a specific finding of "improper or dishonest conduct". Any language in the judgment that supports the conclusion that the court found the conduct of the regulant involved improper or dishonest conduct may be used by the Board to determine eligibility for recovery from the Fund.
"Improper or dishonest conduct" includes only the wrongful and fraudulent taking or conversion of money, property or other things of value or material misrepresentation or deceit.
If the regulant has filed bankruptcy, the claimant shall file a claim with the proper bankruptcy court. If no distribution is made, the claimant may then file a claim with the Board. The Board shall determine whether the conduct that gave rise was improper and dishonest and what amount, if any, such claimant is entitled to recover from the Fund.
The regulant must have been licensed during the period in which the improper and dishonest conduct occurred in connection with a transaction involving the sale, lease, or management of real property by the regulant acting in the capacity of a real estate broker or real estate salesperson and not in the capacity of a principal.
The consumer filing the claim cannot be any of the following:
1. a regulant;
2. the personal representative of the regulant;
3. the spouse or child of the regulant against whom the judgment was
awarded, nor the personal representative of such spouse or child; or
4. any lending or financial institution nor anyone whose business
involves the construction or development of real property.
Limitations
A single claim is limited to $20,000.00.
Multiple claims involving one regulant are limited to $50,000.00 per year. If multiple claims involving one regulant exceed $50,000.00, the claim amounts will be prorated. If there is reason to believe there will be multiple claims involving one regulant, payment of claims will be delayed for a period not to exceed one year.
The Fund will not pay interest, punitive damages, exemplary damages, or any amounts that do not constitute actual monetary loss to the claimant. However, the award may include attorney's fees and court costs.
Revocation of License
When a payment involving a regulant is made from the Fund, in most cases, the regulant's license is automatically revoked. Any regulant whose license is revoked shall not be eligible to apply for a license as a real estate broker or real estate salesperson until the regulant has repaid in full the amount paid from the Fund on his account, plus interest. The Real Estate Board may also take further disciplinary actions against the regulant.
Source of Funding
The Real Estate Transaction Recovery Fund is NOT supported by tax revenues. All administrative costs and claims are funded with assessments paid by real estate brokers and real estate salespersons licensed by the Commonwealth of Virginia.
How To File A Claim
When the consumer takes any legal action against a regulant, the Clerk of Court should be notified that the Real Estate Board must also receive a copy of the notice served on the regulant. An affidavit stating the acts of improper or dishonest conduct of the regulant should be included with the notice given to the Board.
After the consumer has obtained a judgment from a court, an attempt must be made to collect from the regulant by conducting debtor interrogatories. This action determines whether the regulant has any assets which can be sold or applied in satisfaction of the judgment. If any assets are revealed by the interrogatories, the consumer must provide evidence that all legally available actions have been taken to sell the assets and disclose amounts realized from such actions.
A Real Estate Transaction Recovery Act claim form must be filed with the Department of Professional and Occupational Regulation within twelve (12) months after the judgment became final. Please attach a certified copy of the judgment order, copies of all pleadings filed by either party (if any), a copy of the contract, a notarized affidavit stating the acts of improper and dishonest conduct by the regulant which form the basis of this claim, and evidence of the conducting of debtor interrogatories, which should include the front and back of the summons for interrogatories.
To obtain more information or to request a claim form, contact us at:
Department of Professional and Occupational Regulation
Real Estate Transaction Recovery Fund
9960 Mayland Drive
Suite 400
Richmond, VA 23233-1463
(8:30 A.M. – 4:30 P.M., Monday – Friday)
Phone: (804) 367-1559
E-mail: recoveryfund@dpor.virginia.gov
Forms, Brochures and Frequently Asked Questions
Frequently Asked Questions (FAQs)
Information Brochure (PDF Format)
Real Estate Recovery Fund Claim Form (PDF Format)
The information contained within is not binding on the Department; for the actual provisions, refer to Sections 54.1-2112 to 54.1-2120 of the Code of Virginia.
Copyright © 2000 Virginia Department of Professional and Occupational Regulation
This web page was last updated: 08/31/2007 07:43:07 AM