{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/54.1-1120.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/54.1-1120.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/54.1-1120.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/54.1-1120.html"}],"law_id":86855,"edition_id":1,"section_id":86855,"structure_id":13920,"section_number":"54.1-1120","catch_line":"Recovery from Fund generally","history":"1980, c. 635, \u00a7 54-145.3:3; 1984, c. 270; 1987, c. 555; 1988, cc. 393, 765; 1990, cc. 215, 437, 911; 1995, c. 784; 1996, c. 96; 1997, c. 885; 1999, cc. 55, 261; 2013, c. 343; 2015, c. 409; 2023, c. 248.","full_text":"A\n\nThe claimant shall be (i) an individual whose contract with the regulant involved contracting for the claimant’s residence located in the Commonwealth or (ii) a property owners’ association as defined in § 55.1-1800 whose contract with the regulant involved contracting for improvements to the common areas owned by the association.\n\t\t\tThe claimant shall not himself be (a) an employee of such judgment debtor, (b) a vendor of such judgment debtor, (c) another licensee, (d) the spouse or child of such judgment debtor or the employee of such spouse or child, or (e) a financial or lending institution or any person whose business involves the construction or development of real property.B\n\nWhenever any person is awarded a judgment in a court of competent jurisdiction in the Commonwealth or has a judgment entered in conformity with an order confirming an arbitration award from a court of competent jurisdiction in the Commonwealth against any individual or entity that involves improper or dishonest conduct occurring (i) during a period when such individual or entity was a regulant and (ii) in connection with a transaction involving contracting, the claimant may file a verified claim with the Director to obtain a directive ordering payment from the Fund of the amount unpaid upon the judgment, subject to the following conditions:1\n\nIf an action is instituted against a regulant by any person in a court of competent jurisdiction in the Commonwealth, such person shall serve a copy of the complaint upon the Board by certified mail or the equivalent; however, if a person submits a dispute to arbitration against a regulant, such person shall serve upon the Board a copy of the statement of facts and allegations provided to any assigned arbitrator, as well as the name, address, and contact information for any such arbitrator.2\n\nA copy of any pleading or document filed subsequent to the initial service of process in the action against a regulant shall be provided to the Board. If the dispute is submitted to arbitration, a copy of any document or exhibit subsequently provided to any assigned arbitrator shall be provided to the Board. The claimant shall submit such copies to the Board by certified mail, or the equivalent, upon his receipt of the pleading, document, or exhibit.3\n\nA verified claim shall be filed with the Director no later than 12 months after the date of entry of the final judgment from which no further right of appeal exists. In addition to a verified claim, if a claimant is granted an order confirming an arbitration award, a verified copy of the decision of any assigned arbitrator, including a statement of reasoning and any findings of fact regarding any improper or dishonest conduct by the regulant shall be filed with the Director no later than 12 months after the date of entry of the judgment entered in conformity with an order from a court of competent jurisdiction in the Commonwealth confirming an arbitration award from which no further right of appeal exists.4\n\nPrior to submitting the verified claim, the claimant shall:\n\t\t\t\ta. Conduct or make a reasonable attempt to conduct debtor’s interrogatories to determine whether the judgment debtor has any assets that may be sold or applied in whole or partial satisfaction of the judgment; and\n\t\t\t\tb. Take all legally available actions for the sale or application of any assets disclosed in the debtor’s interrogatories.C\n\nIf the regulant has filed bankruptcy, the claimant shall file a claim with the proper bankruptcy court. If no distribution is made, or the distribution ordered fails to satisfy the claim, the claimant may then file a claim with the Board. The verified claim shall be received by the Board within 12 months of the date of bankruptcy discharge or dismissal. In the event the judgment is silent as to the conduct of the regulant, the Board shall determine (i) whether the conduct of the regulant that gave rise to the claim was improper or dishonest and (ii) what amount, if any, such claimant is entitled to recover from the Fund.","order_by":null,"text":{"0":{"id":310964,"text":"The claimant shall be (i) an individual whose contract with the regulant involved contracting for the claimant’s residence located in the Commonwealth or (ii) a property owners’ association as defined in § 55.1-1800 whose contract with the regulant involved contracting for improvements to the common areas owned by the association.\n\t\t\tThe claimant shall not himself be (a) an employee of such judgment debtor, (b) a vendor of such judgment debtor, (c) another licensee, (d) the spouse or child of such judgment debtor or the employee of such spouse or child, or (e) a financial or lending institution or any person whose business involves the construction or development of real property.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":310965,"text":"Whenever any person is awarded a judgment in a court of competent jurisdiction in the Commonwealth or has a judgment entered in conformity with an order confirming an arbitration award from a court of competent jurisdiction in the Commonwealth against any individual or entity that involves improper or dishonest conduct occurring (i) during a period when such individual or entity was a regulant and (ii) in connection with a transaction involving contracting, the claimant may file a verified claim with the Director to obtain a directive ordering payment from the Fund of the amount unpaid upon the judgment, subject to the following conditions:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":310966,"text":"If an action is instituted against a regulant by any person in a court of competent jurisdiction in the Commonwealth, such person shall serve a copy of the complaint upon the Board by certified mail or the equivalent; however, if a person submits a dispute to arbitration against a regulant, such person shall serve upon the Board a copy of the statement of facts and allegations provided to any assigned arbitrator, as well as the name, address, and contact information for any such arbitrator.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":310967,"text":"A copy of any pleading or document filed subsequent to the initial service of process in the action against a regulant shall be provided to the Board. If the dispute is submitted to arbitration, a copy of any document or exhibit subsequently provided to any assigned arbitrator shall be provided to the Board. The claimant shall submit such copies to the Board by certified mail, or the equivalent, upon his receipt of the pleading, document, or exhibit.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":310968,"text":"A verified claim shall be filed with the Director no later than 12 months after the date of entry of the final judgment from which no further right of appeal exists. In addition to a verified claim, if a claimant is granted an order confirming an arbitration award, a verified copy of the decision of any assigned arbitrator, including a statement of reasoning and any findings of fact regarding any improper or dishonest conduct by the regulant shall be filed with the Director no later than 12 months after the date of entry of the judgment entered in conformity with an order from a court of competent jurisdiction in the Commonwealth confirming an arbitration award from which no further right of appeal exists.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":310969,"text":"Prior to submitting the verified claim, the claimant shall:\n\t\t\t\ta. Conduct or make a reasonable attempt to conduct debtor’s interrogatories to determine whether the judgment debtor has any assets that may be sold or applied in whole or partial satisfaction of the judgment; and\n\t\t\t\tb. Take all legally available actions for the sale or application of any assets disclosed in the debtor’s interrogatories.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"C"},"6":{"id":310970,"text":"If the regulant has filed bankruptcy, the claimant shall file a claim with the proper bankruptcy court. If no distribution is made, or the distribution ordered fails to satisfy the claim, the claimant may then file a claim with the Board. The verified claim shall be received by the Board within 12 months of the date of bankruptcy discharge or dismissal. In the event the judgment is silent as to the conduct of the regulant, the Board shall determine (i) whether the conduct of the regulant that gave rise to the claim was improper or dishonest and (ii) what amount, if any, such claimant is entitled to recover from the Fund.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B4"}},"ancestry":[{"id":13920,"edition_id":1,"name":"Virginia Contractor Transaction Recovery Act","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":13234,"metadata":{},"date_created":"2026-06-26 03:46:18","date_modified":"2026-06-26 03:46:18","permalink":{"id":239527,"object_type":"structure","relational_id":13920,"identifier":"2","token":"54.1\/II\/11\/2","url":"\/54.1\/II\/11\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13234,"edition_id":1,"name":"Contractors","identifier":"11","label":"chapter","depth":3,"order_by":1,"parent_id":12755,"metadata":{},"date_created":"2026-06-26 03:44:29","date_modified":"2026-06-26 03:44:29","permalink":{"id":239423,"object_type":"structure","relational_id":13234,"identifier":"11","token":"54.1\/II\/11","url":"\/54.1\/II\/11\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12755,"edition_id":1,"name":"Professions and Occupations Regulated by the Department of Professional and Occupational Regulation and Boards Within the Department","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12754,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":239415,"object_type":"structure","relational_id":12755,"identifier":"II","token":"54.1\/II","url":"\/54.1\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12754,"edition_id":1,"name":"Professions and Occupations","identifier":"54.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":239313,"object_type":"structure","relational_id":12754,"identifier":"54.1","token":"54.1","url":"\/54.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":85483,"structure_id":13920,"section_number":"54.1-1118","catch_line":"Definitions","url":"\/54.1-1118\/","token":"54.1\/II\/11\/2\/54.1-1118","metadata":false},{"id":65141,"structure_id":13920,"section_number":"54.1-1119","catch_line":"Assessments by Director; assignment to Fund; minimum balance; notice; penalties; costs of administration","url":"\/54.1-1119\/","token":"54.1\/II\/11\/2\/54.1-1119","metadata":false},{"id":86855,"structure_id":13920,"section_number":"54.1-1120","catch_line":"Recovery from Fund generally","url":"\/54.1-1120\/","token":"54.1\/II\/11\/2\/54.1-1120","metadata":false},{"id":73226,"structure_id":13920,"section_number":"54.1-1120.1","catch_line":"Recovery on bond","url":"\/54.1-1120.1\/","token":"54.1\/II\/11\/2\/54.1-1120.1","metadata":false},{"id":60926,"structure_id":13920,"section_number":"54.1-1121","catch_line":"Investigations","url":"\/54.1-1121\/","token":"54.1\/II\/11\/2\/54.1-1121","metadata":false},{"id":54973,"structure_id":13920,"section_number":"54.1-1122","catch_line":"Consideration of applications for payment","url":"\/54.1-1122\/","token":"54.1\/II\/11\/2\/54.1-1122","metadata":false},{"id":62297,"structure_id":13920,"section_number":"54.1-1123","catch_line":"Limitations upon recovery from Fund; certain actions not a bar to recovery","url":"\/54.1-1123\/","token":"54.1\/II\/11\/2\/54.1-1123","metadata":false},{"id":86010,"structure_id":13920,"section_number":"54.1-1124","catch_line":"Participation by Board or Director in proceeding","url":"\/54.1-1124\/","token":"54.1\/II\/11\/2\/54.1-1124","metadata":false},{"id":87375,"structure_id":13920,"section_number":"54.1-1125","catch_line":"Assignment of claimant's rights to Board; payment of claim","url":"\/54.1-1125\/","token":"54.1\/II\/11\/2\/54.1-1125","metadata":false},{"id":76787,"structure_id":13920,"section_number":"54.1-1126","catch_line":"Repealed","url":"\/54.1-1126\/","token":"54.1\/II\/11\/2\/54.1-1126","metadata":false},{"id":56430,"structure_id":13920,"section_number":"54.1-1127","catch_line":"No waiver by Board of disciplinary action against regulant","url":"\/54.1-1127\/","token":"54.1\/II\/11\/2\/54.1-1127","metadata":false}],"previous_section":{"id":65141,"structure_id":13920,"section_number":"54.1-1119","catch_line":"Assessments by Director; assignment to Fund; minimum balance; notice; penalties; costs of administration","url":"\/54.1-1119\/","token":"54.1\/II\/11\/2\/54.1-1119","metadata":false},"next_section":{"id":73226,"structure_id":13920,"section_number":"54.1-1120.1","catch_line":"Recovery on bond","url":"\/54.1-1120.1\/","token":"54.1\/II\/11\/2\/54.1-1120.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/54.1-1120\/","history_text":"

This law was first created in 1980. The record of its establishment is cataloged in chapter 635 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1980 \u201cActs\u201d aren\u2019t available online. It has been modified 11 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1984, chapter 270; in 1987, chapter 555; in 1988, chapters 393 and 765; in 1990, chapters 215, 437, and 911; in 1995, chapter 784<\/a>; in 1996, chapter 96<\/a>; in 1997, chapter 885<\/a>; in 1999, chapters 55<\/a> and 261<\/a>; in 2013, chapter 343<\/a>; in 2015, chapter 409<\/a>; in 2023, chapter 248<\/a>.<\/p>","references":[{"id":73226,"section_number":"54.1-1120.1","catch_line":"Recovery on bond","order_by":null,"url":"\/54.1-1120.1\/"},{"id":62297,"section_number":"54.1-1123","catch_line":"Limitations upon recovery from Fund; certain actions not a bar to recovery","order_by":null,"url":"\/54.1-1123\/"},{"id":86010,"section_number":"54.1-1124","catch_line":"Participation by Board or Director in proceeding","order_by":null,"url":"\/54.1-1124\/"}],"refers_to":[{"id":65321,"section_number":"55.1-1800","catch_line":"Definitions","order_by":null,"url":"\/55.1-1800\/"}],"permalink":{"id":239537,"object_type":"law","relational_id":86855,"identifier":"54.1-1120","token":"54.1\/II\/11\/2\/54.1-1120","url":"\/54.1-1120\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/54.1-1120\/","token":"54.1\/II\/11\/2\/54.1-1120","dublin_core":{"Title":"Recovery from Fund generally","Type":"Text","Format":"text\/html","Identifier":"\u00a7 54.1-1120","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The claimant<\/span> shall be (i) an individual whose contract<\/span> with the regulant<\/span> involved contracting for the claimant<\/span>’s residence located in the Commonwealth or (ii) a property owners’ association as defined in § 55.1-1800<\/a> whose contract<\/span> with the regulant<\/span> involved contracting for improvements<\/span> to the common areas owned by the association.\n\t\t\tThe claimant<\/span> shall not himself be (a) an employee of such judgment debtor<\/span>, (b) a vendor of such judgment debtor<\/span>, (c) another licensee, (d) the spouse or child of such judgment debtor<\/span> or the employee of such spouse or child, or (e) a financial or lending institution or any person<\/span> whose business involves the construction or development of real property. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Whenever any person<\/span> is awarded a judgment in a court<\/span> of competent jurisdiction<\/span> in the Commonwealth or has a judgment entered in conformity with an order<\/span> confirming an arbitration award from a court<\/span> of competent jurisdiction<\/span> in the Commonwealth against any individual or entity that involves improper or dishonest conduct<\/span> occurring (i) during a period when such individual or entity was a regulant<\/span> and (ii) in connection with a transaction involving contracting, the claimant<\/span> may file a verified claim<\/span> with the Director<\/span> to obtain a directive ordering payment from the Fund<\/span> of the amount unpaid upon the judgment, subject to the following conditions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> If an action is instituted against a regulant<\/span> by any person<\/span> in a court<\/span> of competent jurisdiction<\/span> in the Commonwealth, such person<\/span> shall serve a copy of the complaint upon the Board<\/span> by certified mail or the equivalent; however, if a person<\/span> submits a dispute to arbitration against a regulant<\/span>, such person<\/span> shall serve upon the Board<\/span> a copy of the statement of facts<\/span> and allegations<\/span> provided to any assigned arbitrator, as well as the name, address, and contact information for any such arbitrator. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A copy of any pleading or document filed subsequent to the initial service of process<\/span> in the action against a regulant<\/span> shall be provided to the Board<\/span>. If the dispute is submitted to arbitration, a copy of any document or exhibit subsequently provided to any assigned arbitrator shall be provided to the Board<\/span>. The claimant<\/span> shall submit such copies to the Board<\/span> by certified mail, or the equivalent, upon his receipt of the pleading, document, or exhibit. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A verified claim<\/span> shall be filed with the Director<\/span> no later than 12 months after the date of entry of the final judgment from which no further right of appeal<\/span> exists. In addition to a verified claim<\/span>, if a claimant<\/span> is granted an order<\/span> confirming an arbitration award, a verified copy of the decision of any assigned arbitrator, including a statement of reasoning and any findings<\/span> of fact<\/span> regarding any improper or dishonest conduct<\/span> by the regulant<\/span> shall be filed with the Director<\/span> no later than 12 months after the date of entry of the judgment entered in conformity with an order<\/span> from a court<\/span> of competent jurisdiction<\/span> in the Commonwealth confirming an arbitration award from which no further right of appeal<\/span> exists. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Prior to submitting the verified claim<\/span>, the claimant<\/span> shall:\n\t\t\t\ta. Conduct or make a reasonable attempt to conduct debtor’s interrogatories<\/span> to determine whether the judgment debtor<\/span> has any assets<\/span> that may be sold or applied in whole or partial satisfaction of the judgment; and\n\t\t\t\tb. Take all legally available actions for the sale or application of any assets<\/span> disclosed in the debtor’s interrogatories<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> If the regulant<\/span> has filed bankruptcy, the claimant<\/span> shall file a claim with the proper bankruptcy court<\/span>. If no distribution is made, or the distribution ordered fails to satisfy the claim, the claimant<\/span> may then file a claim with the Board<\/span>. The verified claim<\/span> shall be received by the Board<\/span> within 12 months of the date of bankruptcy discharge or dismissal<\/span>. In the event the judgment is silent as to the conduct of the regulant<\/span>, the Board<\/span> shall determine (i) whether the conduct of the regulant<\/span> that gave rise to the claim was improper or dishonest and (ii) what amount, if any, such claimant<\/span> is entitled to recover from the Fund<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nRECOVERY FROM FUND GENERALLY (\u00a7 54.1-1120)\n\nA. The claimant shall be (i) an individual whose contract with the regulant\ninvolved contracting for the claimant’s residence located in the\nCommonwealth or (ii) a property owners’ association as defined in §\n55.1-1800 whose contract with the regulant involved contracting for improvements\nto the common areas owned by the association.\n\t\t\tThe claimant shall not himself be (a) an employee of such judgment debtor,\n(b) a vendor of such judgment debtor, (c) another licensee, (d) the spouse or\nchild of such judgment debtor or the employee of such spouse or child, or (e) a\nfinancial or lending institution or any person whose business involves the\nconstruction or development of real property.\n\nB. Whenever any person is awarded a judgment in a court of competent\njurisdiction in the Commonwealth or has a judgment entered in conformity with an\norder confirming an arbitration award from a court of competent jurisdiction in\nthe Commonwealth against any individual or entity that involves improper or\ndishonest conduct occurring (i) during a period when such individual or entity\nwas a regulant and (ii) in connection with a transaction involving contracting,\nthe claimant may file a verified claim with the Director to obtain a directive\nordering payment from the Fund of the amount unpaid upon the judgment, subject\nto the following conditions:\n\n 1. If an action is instituted against a regulant by any person in a court of\n competent jurisdiction in the Commonwealth, such person shall serve a copy of\n the complaint upon the Board by certified mail or the equivalent; however, if\n a person submits a dispute to arbitration against a regulant, such person\n shall serve upon the Board a copy of the statement of facts and allegations\n provided to any assigned arbitrator, as well as the name, address, and contact\n information for any such arbitrator.\n\n 2. A copy of any pleading or document filed subsequent to the initial service\n of process in the action against a regulant shall be provided to the Board. If\n the dispute is submitted to arbitration, a copy of any document or exhibit\n subsequently provided to any assigned arbitrator shall be provided to the\n Board. The claimant shall submit such copies to the Board by certified mail,\n or the equivalent, upon his receipt of the pleading, document, or exhibit.\n\n 3. A verified claim shall be filed with the Director no later than 12 months\n after the date of entry of the final judgment from which no further right of\n appeal exists. In addition to a verified claim, if a claimant is granted an\n order confirming an arbitration award, a verified copy of the decision of any\n assigned arbitrator, including a statement of reasoning and any findings of\n fact regarding any improper or dishonest conduct by the regulant shall be\n filed with the Director no later than 12 months after the date of entry of the\n judgment entered in conformity with an order from a court of competent\n jurisdiction in the Commonwealth confirming an arbitration award from which no\n further right of appeal exists.\n\n 4. Prior to submitting the verified claim, the claimant shall:\n \t\t\t\ta. Conduct or make a reasonable attempt to conduct debtor’s\n interrogatories to determine whether the judgment debtor has any assets that\n may be sold or applied in whole or partial satisfaction of the judgment; and\n \t\t\t\tb. Take all legally available actions for the sale or application of any\n assets disclosed in the debtor’s interrogatories.\n\nC. If the regulant has filed bankruptcy, the claimant shall file a claim with\nthe proper bankruptcy court. If no distribution is made, or the distribution\nordered fails to satisfy the claim, the claimant may then file a claim with the\nBoard. The verified claim shall be received by the Board within 12 months of the\ndate of bankruptcy discharge or dismissal. In the event the judgment is silent\nas to the conduct of the regulant, the Board shall determine (i) whether the\nconduct of the regulant that gave rise to the claim was improper or dishonest\nand (ii) what amount, if any, such claimant is entitled to recover from the\nFund.\n\nHISTORY: 1980, c. 635, \u00a7 54-145.3:3; 1984, c. 270; 1987, c. 555; 1988, cc. 393,\n765; 1990, cc. 215, 437, 911; 1995, c. 784; 1996, c. 96; 1997, c. 885; 1999, cc.\n55, 261; 2013, c. 343; 2015, c. 409; 2023, c. 248.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}