§ 5-20.5-5 Real estate recovery account.– (a) The department of business regulation shall establish and maintain a realestate recovery account from which any person aggrieved by an act,representation, transaction, or conduct of a licensed real estate broker orreal estate salesperson, upon the grounds of fraud, misrepresentation ordeceit, may recover by order of the superior court of the county where theviolation occurred, an amount of not more than fifty thousand dollars ($50,000)for damages sustained by the fraud, misrepresentation, or deceit, as a resultof any real estate transaction in which the real estate broker or salespersonhas acted in his or her capacity as a real estate broker or salesperson. Thisaccount shall not be used to reimburse any real estate broker or salespersonfor any commission, fee, or other valuable consideration due or owing from anyother real estate broker or salesperson. Provided, that pursuant to subsection(h) of this section the amount available for payments of claims is limited tofifty thousand dollars ($50,000) for any one licensee. Payment of claims ismade in order according to the date a judgment is awarded with that judgmentawarded earliest in time being paid first.
(2) When any person makes application for an original licenseto practice as a real estate broker or salesperson he or she shall pay, inaddition to his or her original license fee, a fee determined by the departmentfor deposit in the real estate recovery account. If the department does notissue the license, this fee is returned to the applicant.
(b) If, on December 31 of any year, the balance remaining inthe real estate recovery account is less than two hundred thousand dollars($200,000), every real estate broker, when renewing his or her license duringthe following calendar year, shall pay, in addition to his or her licenserenewal fee, a fee of twenty-five dollars ($25.00) for deposit in the realestate recovery account, and every real estate salesperson, when renewing hisor her license during that year, shall pay, in addition to his or her licenserenewal fee, a fee of twenty-five dollars ($25.00) for deposit in the realestate recovery account.
(c) No action for a judgment which subsequently results in anorder for collection from the real estate recovery account shall be startedlater than two (2) years from the accrual of the cause of action. When anyaggrieved person commences action for a judgment, which may result incollection from the real estate recovery account, the aggrieved person shallnotify the department of business regulations, in writing, to this effect atthe time of the commencement of that action.
(2) When any aggrieved person recovers a valid judgment inany court of competent jurisdiction against any real estate broker, or realestate salesperson, upon the grounds of fraud, misrepresentation, or deceit,which occurred on or after May 11, 1978, the aggrieved person may, upon thetermination of all proceedings, including reviews and appeals in connectionwith the judgment, file a verified claim in the court in which the judgment wasentered and, upon ten (10) days' written notice to the department, may apply tothe court for an order directing payment out of the real estate recoveryaccount, of the amount unpaid upon the judgment, subject to the limitationsstated in this section.
(3) The court shall proceed upon the application in a summarymanner, and, upon the hearing on the application, the aggrieved person shall berequired to show:
(i) He or she is not a spouse of debtor, or the personalrepresentative of the spouse;
(ii) He or she has complied with all the requirements of thissection;
(iii) He or she has obtained a judgment as set out insubdivision (2) of this subsection, stating the amount of the judgment and theamount owing on it on the date of the application;
(iv) He or she has made all reasonable searches and inquiriesto ascertain whether the judgment debtor is possessed of real or personalproperty or other assets, liable to be sold or applied in satisfaction of thejudgment; and
(v) That by the search pursuant to paragraph (iv) of thissubdivision he or she has discovered no personal or real property or otherassets liable to be sold or applied, or that he or she has discovered certainof them, describing them, owned by the judgment debtor and liable to be soapplied, and that he or she has taken all necessary action and proceedings forthe realization, and that the amount realized was insufficient to satisfy thejudgment, stating the amount realized and the balance remaining due on thejudgment after application of the amount realized.
(4) The court shall make an order directed to the departmentof business regulation requiring payment from the real estate recovery accountof whatever sum it finds to be payable upon the claim, pursuant to and inaccordance with the limitations contained in this section, if the court issatisfied, upon the hearing of the truth of all matters required to be shown bythe aggrieved person by subdivision (3) of this subsection and that theaggrieved person has fully pursued and exhausted all remedies available to himor her for recovering the amount awarded by the judgment of the court.
(5) Should the department of business regulation pay from thereal estate recovery account any amount in settlement of a claim or towardsatisfaction of a judgment against a licensed real estate broker or real estatesalesperson, the license of the broker or salesperson shall be automaticallyrevoked upon the issuance of a court order authorizing payment from the realestate recovery account. This broker or salesperson is not eligible to receivea new license until he or she has repaid in full, plus interest at the rate oftwelve percent (12%) a year, the amount paid from the real estate recoveryaccount on his or her account. A discharge in bankruptcy does not relieve aperson from the penalties and disabilities provided in this subdivision.
(6) If, at any time, the money deposited in the real estaterecovery account is insufficient to satisfy any authorized claim or portion ofa claim, the department shall, when sufficient money has been deposited in thereal estate recovery account, satisfy those unpaid claims or portions ofclaims, in the order that those claims or portions of claims were originallyfiled, plus accumulated interest at the rate of twelve percent (12%) a year.
(d) It is unlawful and constitutes a misdemeanor for anyperson or his or her agent to file with the department of business regulationany notice, statement, or other document required under this chapter which isfalse or untrue or contains any material misstatement of fact.
(e) When the department receives notice, as provided insubdivision (c)(1) of this section, the department may enter an appearance,file an answer, appear at the court hearing, defend the action, or takewhatever other action it deems appropriate on behalf and in the name of thedefendant, and take recourse through any appropriate method of review on behalfof, and in the name of, the defendant.
(f) When, upon the order of the court, the department ofbusiness regulation has paid from the real estate recovery account any sum tothe judgment creditor, the department is subrogated to all of the rights of thejudgment creditor and the judgment creditor assigns all his or her right,title, and interest in the judgment to the department and any amount andinterest recovered by the department on the judgment shall be deposited to theaccount.
(g) The failure of an aggrieved person to comply with thischapter relating to the real estate recovery account constitutes a waiver ofany rights under this chapter.
(h) Notwithstanding any other provision, the liability ofthat portion of the real estate recovery account allocated for the purposes ofthe real estate recovery account shall not exceed fifty thousand dollars($50,000) for any one licensee.
(i) Nothing contained in this section limits the authority ofthe department of business regulation to take disciplinary action against anylicensee for a violation of this chapter, or the rules and regulations of thedepartment; nor does the repayment in full of all obligations to the realestate recovery account by any licensee nullify or modify the effect of anyother disciplinary proceeding brought pursuant to this chapter.
§ 5-20.5-5 Real estate recovery account.– (a) The department of business regulation shall establish and maintain a realestate recovery account from which any person aggrieved by an act,representation, transaction, or conduct of a licensed real estate broker orreal estate salesperson, upon the grounds of fraud, misrepresentation ordeceit, may recover by order of the superior court of the county where theviolation occurred, an amount of not more than fifty thousand dollars ($50,000)for damages sustained by the fraud, misrepresentation, or deceit, as a resultof any real estate transaction in which the real estate broker or salespersonhas acted in his or her capacity as a real estate broker or salesperson. Thisaccount shall not be used to reimburse any real estate broker or salespersonfor any commission, fee, or other valuable consideration due or owing from anyother real estate broker or salesperson. Provided, that pursuant to subsection(h) of this section the amount available for payments of claims is limited tofifty thousand dollars ($50,000) for any one licensee. Payment of claims ismade in order according to the date a judgment is awarded with that judgmentawarded earliest in time being paid first.
(2) When any person makes application for an original licenseto practice as a real estate broker or salesperson he or she shall pay, inaddition to his or her original license fee, a fee determined by the departmentfor deposit in the real estate recovery account. If the department does notissue the license, this fee is returned to the applicant.
(b) If, on December 31 of any year, the balance remaining inthe real estate recovery account is less than two hundred thousand dollars($200,000), every real estate broker, when renewing his or her license duringthe following calendar year, shall pay, in addition to his or her licenserenewal fee, a fee of twenty-five dollars ($25.00) for deposit in the realestate recovery account, and every real estate salesperson, when renewing hisor her license during that year, shall pay, in addition to his or her licenserenewal fee, a fee of twenty-five dollars ($25.00) for deposit in the realestate recovery account.
(c) No action for a judgment which subsequently results in anorder for collection from the real estate recovery account shall be startedlater than two (2) years from the accrual of the cause of action. When anyaggrieved person commences action for a judgment, which may result incollection from the real estate recovery account, the aggrieved person shallnotify the department of business regulations, in writing, to this effect atthe time of the commencement of that action.
(2) When any aggrieved person recovers a valid judgment inany court of competent jurisdiction against any real estate broker, or realestate salesperson, upon the grounds of fraud, misrepresentation, or deceit,which occurred on or after May 11, 1978, the aggrieved person may, upon thetermination of all proceedings, including reviews and appeals in connectionwith the judgment, file a verified claim in the court in which the judgment wasentered and, upon ten (10) days' written notice to the department, may apply tothe court for an order directing payment out of the real estate recoveryaccount, of the amount unpaid upon the judgment, subject to the limitationsstated in this section.
(3) The court shall proceed upon the application in a summarymanner, and, upon the hearing on the application, the aggrieved person shall berequired to show:
(i) He or she is not a spouse of debtor, or the personalrepresentative of the spouse;
(ii) He or she has complied with all the requirements of thissection;
(iii) He or she has obtained a judgment as set out insubdivision (2) of this subsection, stating the amount of the judgment and theamount owing on it on the date of the application;
(iv) He or she has made all reasonable searches and inquiriesto ascertain whether the judgment debtor is possessed of real or personalproperty or other assets, liable to be sold or applied in satisfaction of thejudgment; and
(v) That by the search pursuant to paragraph (iv) of thissubdivision he or she has discovered no personal or real property or otherassets liable to be sold or applied, or that he or she has discovered certainof them, describing them, owned by the judgment debtor and liable to be soapplied, and that he or she has taken all necessary action and proceedings forthe realization, and that the amount realized was insufficient to satisfy thejudgment, stating the amount realized and the balance remaining due on thejudgment after application of the amount realized.
(4) The court shall make an order directed to the departmentof business regulation requiring payment from the real estate recovery accountof whatever sum it finds to be payable upon the claim, pursuant to and inaccordance with the limitations contained in this section, if the court issatisfied, upon the hearing of the truth of all matters required to be shown bythe aggrieved person by subdivision (3) of this subsection and that theaggrieved person has fully pursued and exhausted all remedies available to himor her for recovering the amount awarded by the judgment of the court.
(5) Should the department of business regulation pay from thereal estate recovery account any amount in settlement of a claim or towardsatisfaction of a judgment against a licensed real estate broker or real estatesalesperson, the license of the broker or salesperson shall be automaticallyrevoked upon the issuance of a court order authorizing payment from the realestate recovery account. This broker or salesperson is not eligible to receivea new license until he or she has repaid in full, plus interest at the rate oftwelve percent (12%) a year, the amount paid from the real estate recoveryaccount on his or her account. A discharge in bankruptcy does not relieve aperson from the penalties and disabilities provided in this subdivision.
(6) If, at any time, the money deposited in the real estaterecovery account is insufficient to satisfy any authorized claim or portion ofa claim, the department shall, when sufficient money has been deposited in thereal estate recovery account, satisfy those unpaid claims or portions ofclaims, in the order that those claims or portions of claims were originallyfiled, plus accumulated interest at the rate of twelve percent (12%) a year.
(d) It is unlawful and constitutes a misdemeanor for anyperson or his or her agent to file with the department of business regulationany notice, statement, or other document required under this chapter which isfalse or untrue or contains any material misstatement of fact.
(e) When the department receives notice, as provided insubdivision (c)(1) of this section, the department may enter an appearance,file an answer, appear at the court hearing, defend the action, or takewhatever other action it deems appropriate on behalf and in the name of thedefendant, and take recourse through any appropriate method of review on behalfof, and in the name of, the defendant.
(f) When, upon the order of the court, the department ofbusiness regulation has paid from the real estate recovery account any sum tothe judgment creditor, the department is subrogated to all of the rights of thejudgment creditor and the judgment creditor assigns all his or her right,title, and interest in the judgment to the department and any amount andinterest recovered by the department on the judgment shall be deposited to theaccount.
(g) The failure of an aggrieved person to comply with thischapter relating to the real estate recovery account constitutes a waiver ofany rights under this chapter.
(h) Notwithstanding any other provision, the liability ofthat portion of the real estate recovery account allocated for the purposes ofthe real estate recovery account shall not exceed fifty thousand dollars($50,000) for any one licensee.
(i) Nothing contained in this section limits the authority ofthe department of business regulation to take disciplinary action against anylicensee for a violation of this chapter, or the rules and regulations of thedepartment; nor does the repayment in full of all obligations to the realestate recovery account by any licensee nullify or modify the effect of anyother disciplinary proceeding brought pursuant to this chapter.
§ 5-20.5-5 Real estate recovery account.– (a) The department of business regulation shall establish and maintain a realestate recovery account from which any person aggrieved by an act,representation, transaction, or conduct of a licensed real estate broker orreal estate salesperson, upon the grounds of fraud, misrepresentation ordeceit, may recover by order of the superior court of the county where theviolation occurred, an amount of not more than fifty thousand dollars ($50,000)for damages sustained by the fraud, misrepresentation, or deceit, as a resultof any real estate transaction in which the real estate broker or salespersonhas acted in his or her capacity as a real estate broker or salesperson. Thisaccount shall not be used to reimburse any real estate broker or salespersonfor any commission, fee, or other valuable consideration due or owing from anyother real estate broker or salesperson. Provided, that pursuant to subsection(h) of this section the amount available for payments of claims is limited tofifty thousand dollars ($50,000) for any one licensee. Payment of claims ismade in order according to the date a judgment is awarded with that judgmentawarded earliest in time being paid first.
(2) When any person makes application for an original licenseto practice as a real estate broker or salesperson he or she shall pay, inaddition to his or her original license fee, a fee determined by the departmentfor deposit in the real estate recovery account. If the department does notissue the license, this fee is returned to the applicant.
(b) If, on December 31 of any year, the balance remaining inthe real estate recovery account is less than two hundred thousand dollars($200,000), every real estate broker, when renewing his or her license duringthe following calendar year, shall pay, in addition to his or her licenserenewal fee, a fee of twenty-five dollars ($25.00) for deposit in the realestate recovery account, and every real estate salesperson, when renewing hisor her license during that year, shall pay, in addition to his or her licenserenewal fee, a fee of twenty-five dollars ($25.00) for deposit in the realestate recovery account.
(c) No action for a judgment which subsequently results in anorder for collection from the real estate recovery account shall be startedlater than two (2) years from the accrual of the cause of action. When anyaggrieved person commences action for a judgment, which may result incollection from the real estate recovery account, the aggrieved person shallnotify the department of business regulations, in writing, to this effect atthe time of the commencement of that action.
(2) When any aggrieved person recovers a valid judgment inany court of competent jurisdiction against any real estate broker, or realestate salesperson, upon the grounds of fraud, misrepresentation, or deceit,which occurred on or after May 11, 1978, the aggrieved person may, upon thetermination of all proceedings, including reviews and appeals in connectionwith the judgment, file a verified claim in the court in which the judgment wasentered and, upon ten (10) days' written notice to the department, may apply tothe court for an order directing payment out of the real estate recoveryaccount, of the amount unpaid upon the judgment, subject to the limitationsstated in this section.
(3) The court shall proceed upon the application in a summarymanner, and, upon the hearing on the application, the aggrieved person shall berequired to show:
(i) He or she is not a spouse of debtor, or the personalrepresentative of the spouse;
(ii) He or she has complied with all the requirements of thissection;
(iii) He or she has obtained a judgment as set out insubdivision (2) of this subsection, stating the amount of the judgment and theamount owing on it on the date of the application;
(iv) He or she has made all reasonable searches and inquiriesto ascertain whether the judgment debtor is possessed of real or personalproperty or other assets, liable to be sold or applied in satisfaction of thejudgment; and
(v) That by the search pursuant to paragraph (iv) of thissubdivision he or she has discovered no personal or real property or otherassets liable to be sold or applied, or that he or she has discovered certainof them, describing them, owned by the judgment debtor and liable to be soapplied, and that he or she has taken all necessary action and proceedings forthe realization, and that the amount realized was insufficient to satisfy thejudgment, stating the amount realized and the balance remaining due on thejudgment after application of the amount realized.
(4) The court shall make an order directed to the departmentof business regulation requiring payment from the real estate recovery accountof whatever sum it finds to be payable upon the claim, pursuant to and inaccordance with the limitations contained in this section, if the court issatisfied, upon the hearing of the truth of all matters required to be shown bythe aggrieved person by subdivision (3) of this subsection and that theaggrieved person has fully pursued and exhausted all remedies available to himor her for recovering the amount awarded by the judgment of the court.
(5) Should the department of business regulation pay from thereal estate recovery account any amount in settlement of a claim or towardsatisfaction of a judgment against a licensed real estate broker or real estatesalesperson, the license of the broker or salesperson shall be automaticallyrevoked upon the issuance of a court order authorizing payment from the realestate recovery account. This broker or salesperson is not eligible to receivea new license until he or she has repaid in full, plus interest at the rate oftwelve percent (12%) a year, the amount paid from the real estate recoveryaccount on his or her account. A discharge in bankruptcy does not relieve aperson from the penalties and disabilities provided in this subdivision.
(6) If, at any time, the money deposited in the real estaterecovery account is insufficient to satisfy any authorized claim or portion ofa claim, the department shall, when sufficient money has been deposited in thereal estate recovery account, satisfy those unpaid claims or portions ofclaims, in the order that those claims or portions of claims were originallyfiled, plus accumulated interest at the rate of twelve percent (12%) a year.
(d) It is unlawful and constitutes a misdemeanor for anyperson or his or her agent to file with the department of business regulationany notice, statement, or other document required under this chapter which isfalse or untrue or contains any material misstatement of fact.
(e) When the department receives notice, as provided insubdivision (c)(1) of this section, the department may enter an appearance,file an answer, appear at the court hearing, defend the action, or takewhatever other action it deems appropriate on behalf and in the name of thedefendant, and take recourse through any appropriate method of review on behalfof, and in the name of, the defendant.
(f) When, upon the order of the court, the department ofbusiness regulation has paid from the real estate recovery account any sum tothe judgment creditor, the department is subrogated to all of the rights of thejudgment creditor and the judgment creditor assigns all his or her right,title, and interest in the judgment to the department and any amount andinterest recovered by the department on the judgment shall be deposited to theaccount.
(g) The failure of an aggrieved person to comply with thischapter relating to the real estate recovery account constitutes a waiver ofany rights under this chapter.
(h) Notwithstanding any other provision, the liability ofthat portion of the real estate recovery account allocated for the purposes ofthe real estate recovery account shall not exceed fifty thousand dollars($50,000) for any one licensee.
(i) Nothing contained in this section limits the authority ofthe department of business regulation to take disciplinary action against anylicensee for a violation of this chapter, or the rules and regulations of thedepartment; nor does the repayment in full of all obligations to the realestate recovery account by any licensee nullify or modify the effect of anyother disciplinary proceeding brought pursuant to this chapter.
