§467-16  Real estate recovery
fund; use of fund; fees.  (a)  The
commission shall establish and maintain a trust fund which shall be known as
the real estate recovery fund from which any person aggrieved by an act,
representation, transaction, or conduct of a duly licensed real estate broker,
or real estate salesperson, upon the grounds of fraud, misrepresentation, or
deceit, may recover upon the commission's settlement of a claim or by order of
the circuit court or district court of the county where the violation occurred,
an amount of not more than $25,000 per transaction for damages sustained by the
fraud, misrepresentation, or deceit, including court costs and fees as set by
law, and reasonable attorney fees as determined by the court.



(b)  When any person makes application for an
original license to practice as a real estate broker or salesperson the person
shall pay, in addition to the person's original license fee, a real estate
recovery fund fee as provided in rules adopted by the director of commerce and
consumer affairs pursuant to chapter 91 for deposit in the real estate recovery
fund.  If the commission does not issue the license, this fee shall be returned
to the applicant.



(c)  The commission, as the trustee of the real
estate recovery fund, shall be authorized to expend the funds to:



(1)  Retain private legal counsel to represent the
commission in any action involving or which may result in payment from the real
estate recovery fund;



(2)  Retain a certified public accountant for
accounting and auditing of the real estate recovery fund;



(3)  Employ necessary personnel, not subject to
chapter 76, to assist the commission in exercising its powers and duties with
respect to the real estate recovery fund; and



(4)  Retain a consultant to recover and collect any
payments from the real estate recovery fund plus interest from the judgment
debtor. [L 1967, c 187, pt of §1; HRS §467-16; am L 1972, c 51, §1; am L 1973,
c 142, §2; am L 1976, c 143, §1; am L 1983, c 116, §5; gen ch 1985; am L 1987,
c 208, §2; am L 1988, c 145, §3; am L 1995, c 241, §8; am L 2000, c 253, §150]



 



Rules of Court



 



  Applicability of Hawaii Rules of Civil Procedure, with
respect to §§467-16 to 467-25, see HRCP rule 81(b)(12).



 



Case Notes



 



  Appellants' contention that phrase "damages
sustained", as used in this section, includes punitive damages was
erroneous.  76 H. 39, 868 P.2d 457.



  "Any person aggrieved" means any person-claimant
involved in one transaction.  4 H. App. 552, 670 P.2d 459.