Unit 11: What is the Virginia Real Estate Transaction Recovery Fund?

Unit 11: What is the Virginia Real Estate Transaction Recovery Fund?

Flashcards Here are some specifics of the fund:The fund is overseen by the Director of the DPOR, or Department of Professional and Occupational Regulation.Each new licensee must pay $20 into the Virginia Real Estate Transaction Recovery Fund.The Fund's minimum balance is $400,000.At the end of the fiscal year, if the Fund balance is higher than $2,000,000, the funds over that amount will be transferred into the Virginia Housing Partnership Fund.If the fund falls below $400,000, the board may determine that all licensees (both active and inactive) should pay an assessment. This assessment will not exceed $20.00 for a two-year period ending on June 30th of the even-numbered years.If an assessment is needed, the licensee will be notified by mail, and must send payment within 45 days. Those who do not pay will be sent another notice and be allowed 30 more days in which to pay the assessment. If payment is not made by the end of this time, the licensee's license will be AUTOMATICALLY SUSPENDED!If a licensee does not pay the assessment to the Transaction Recovery Fund, his license will be suspended automatically.If a payment is made from the Transaction Recovery Fund FOR a licensee, the licensee's license will be REVOKED AUTOMATICALLY! Other disciplinary actions may also be taken against the licensee.If the license is revoked because of payment from the Fund, the person will not be eligible for a new license until the Fund has been repaid the judgment amount, PLUS interest at the rate determined by the Fund when the payment was made.In order to receive a payment from the fund, the

complainant must:-.

Have a judgment of "improper and dishonest conduct" from a Virginia courtTake legal action against the licensee to prove he doesn't have the assets available to pay the claimIf it's determined his assets are not sufficient, the claimant should file a claim with the Director of the DPOR requesting payment from the Fund for the unpaid portion of the claim. For judgments entered on or after July 1, 1996, the verified claim shall be filed with the Director no later than twelve months after the judgment becomes final "improper or dishonest conduct" means -"only the wrongful and fraudulent taking or conversion of money, property or other things of value or material misrepresentation or deceit." This includes fraud, false

pretenses, forgery, violation of license law, embezzlement, and other similar offenses.Here are the limitations on recovery from the Virginia Real

Estate Transaction Recovery Fund:-

A single claim is limited to $20,000.00Multiple claims involving one regulant are limited to $50,000.00 per

yearMultiple claims involving one regulant may not exceed $100,000.00 per two-year period, ending June 30 of even-numbered yearsClaim amounts may be proratedIf there is reason to believe there will be multiple claims involving one regulant, payment of claims will be delayed for a maximum of one year

The following are not eligible to receive payments from the

fund:

LicenseesThe spouse, children, or representatives of either, of the person against whom the judgment was madeA financial/lending institutionA person whose business involves the construction/development of real property The Virginia Real Estate Transaction Recovery Fund -.provides relief to consumers who have suffered losses through the improper and dishonest conduct of a licensed real estate broker or real estate salesperson. It only pays ACTUAL losses, not interest or punitive damages.However, it can include attorney's fees and court costs