{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/54.1-2114.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/54.1-2114.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/54.1-2114.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/54.1-2114.html"}],"law_id":61533,"edition_id":1,"section_id":61533,"structure_id":14466,"section_number":"54.1-2114","catch_line":"Recovery from fund generally","history":"1977, c. 69, \u00a7 54-765.4; 1984, c. 266; 1987, c. 555; 1988, c. 765; 1996, c. 115; 2006, c. 723; 2015, c. 409.","full_text":"A\n\nThe claimant shall not himself be (i) a regulant, (ii) the personal representative of a regulant, (iii) the spouse or child of the regulant against whom the judgment was awarded or the personal representative of such spouse or child, or (iv) a lending or financial institution or any person whose business involves the construction or development of real property.B\n\nWhenever any person is awarded a final judgment in any court of competent jurisdiction in the Commonwealth of Virginia against any individual or entity for improper or dishonest conduct as defined in the act, and the improper or dishonest conduct occurred during a period when the individual or entity was a regulant and 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, or on his own account, the person to whom such judgment was awarded may file a verified claim with the Director for a directive ordering payment from the fund of the amount unpaid upon the judgment, subject to the following conditions:1\n\nIf any action is instituted against a regulant by any person, such person shall serve a copy of the complaint upon the Board by certified mail or the equivalent.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. The claimant shall submit such copies to the Board by certified mail, or the equivalent, upon his receipt of the pleading or document.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.4\n\nPrior to submitting a 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, including any listings held by the regulant and any commissions due thereby; 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.5\n\nIf the judgment debtor 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 as defined in § 54.1-2112 and (ii) what amount, if any, such claimant is entitled to recover from the Fund.C\n\nThe Department shall promptly consider the verified claim. If it appears that a prima facie case has been made for payment of the claim, the Department shall provide the regulant with a notice offering the opportunity to be heard at an informal fact-finding conference pursuant to § 2.2-4019 of the Administrative Process Act (§ 2.2-4000 et seq.). Such notice shall state that if the regulant does not request an informal fact-finding conference within 30 days, with three days added in instances where the notice is sent by mail, the Department shall present the claim to the Board with a recommendation to pay the verified claim.D\n\nA claimant shall not be denied recovery from the Fund due to the fact that the order for judgment filed with the verified claim does not contain a specific finding of improper or dishonest conduct. Any language in the order that supports the conclusion that the court found that the conduct of the regulant meets the definition of improper or dishonest conduct in § 54.1-2112 shall be used by the Board to determine eligibility for recovery from the Fund. To the extent the judgment order is silent as to the court’s findings on the conduct of the regulant, the Board may determine whether the conduct of the regulant meets the definition of improper or dishonest conduct by substantial evidence in the verified claim.E\n\nIf the Board finds that there has been compliance with the statutory conditions to which reference is made in this section, the Board shall issue a directive ordering payment to the claimant from the fund the amount unpaid on the judgment, subject to the limitations set forth in § 54.1-2116. The claimant shall be notified in writing of the findings of the Board. The Board’s findings shall be considered a “case decision” and judicial review of these findings shall be in accordance with § 2.2-4025 of the Administrative Process Act (§ 2.2-4000 et seq.). Notwithstanding any other provision of law, the Board shall have the right to appeal a decision of any court which is contrary to any distribution recommended or authorized by it.","order_by":null,"text":{"0":{"id":224694,"text":"The claimant shall not himself be (i) a regulant, (ii) the personal representative of a regulant, (iii) the spouse or child of the regulant against whom the judgment was awarded or the personal representative of such spouse or child, or (iv) a lending or financial 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":224695,"text":"Whenever any person is awarded a final judgment in any court of competent jurisdiction in the Commonwealth of Virginia against any individual or entity for improper or dishonest conduct as defined in the act, and the improper or dishonest conduct occurred during a period when the individual or entity was a regulant and 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, or on his own account, the person to whom such judgment was awarded may file a verified claim with the Director for 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":224696,"text":"If any action is instituted against a regulant by any person, such person shall serve a copy of the complaint upon the Board by certified mail or the equivalent.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":224697,"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. The claimant shall submit such copies to the Board by certified mail, or the equivalent, upon his receipt of the pleading or document.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":224698,"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.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":224699,"text":"Prior to submitting a 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, including any listings held by the regulant and any commissions due thereby; 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":"B5"},"6":{"id":224700,"text":"If the judgment debtor 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 as defined in § 54.1-2112 and (ii) what amount, if any, such claimant is entitled to recover from the Fund.","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"C"},"7":{"id":224701,"text":"The Department shall promptly consider the verified claim. If it appears that a prima facie case has been made for payment of the claim, the Department shall provide the regulant with a notice offering the opportunity to be heard at an informal fact-finding conference pursuant to § 2.2-4019 of the Administrative Process Act (§ 2.2-4000 et seq.). Such notice shall state that if the regulant does not request an informal fact-finding conference within 30 days, with three days added in instances where the notice is sent by mail, the Department shall present the claim to the Board with a recommendation to pay the verified claim.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B5","next_prefix":"D"},"8":{"id":224702,"text":"A claimant shall not be denied recovery from the Fund due to the fact that the order for judgment filed with the verified claim does not contain a specific finding of improper or dishonest conduct. Any language in the order that supports the conclusion that the court found that the conduct of the regulant meets the definition of improper or dishonest conduct in § 54.1-2112 shall be used by the Board to determine eligibility for recovery from the Fund. To the extent the judgment order is silent as to the court’s findings on the conduct of the regulant, the Board may determine whether the conduct of the regulant meets the definition of improper or dishonest conduct by substantial evidence in the verified claim.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"9":{"id":224703,"text":"If the Board finds that there has been compliance with the statutory conditions to which reference is made in this section, the Board shall issue a directive ordering payment to the claimant from the fund the amount unpaid on the judgment, subject to the limitations set forth in § 54.1-2116. The claimant shall be notified in writing of the findings of the Board. The Board’s findings shall be considered a “case decision” and judicial review of these findings shall be in accordance with § 2.2-4025 of the Administrative Process Act (§ 2.2-4000 et seq.). Notwithstanding any other provision of law, the Board shall have the right to appeal a decision of any court which is contrary to any distribution recommended or authorized by it.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":14466,"edition_id":1,"name":"Virginia Real Estate Transaction Recovery Act","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":12756,"metadata":{},"date_created":"2026-06-26 03:48:14","date_modified":"2026-06-26 03:48:14","permalink":{"id":240015,"object_type":"structure","relational_id":14466,"identifier":"2","token":"54.1\/II\/21\/2","url":"\/54.1\/II\/21\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12756,"edition_id":1,"name":"Real Estate Brokers, Sales Persons and Rental Location Agents","identifier":"21","label":"chapter","depth":3,"order_by":1,"parent_id":12755,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":239911,"object_type":"structure","relational_id":12756,"identifier":"21","token":"54.1\/II\/21","url":"\/54.1\/II\/21\/","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":60222,"structure_id":14466,"section_number":"54.1-2112","catch_line":"Definitions","url":"\/54.1-2112\/","token":"54.1\/II\/21\/2\/54.1-2112","metadata":false},{"id":65698,"structure_id":14466,"section_number":"54.1-2113","catch_line":"Establishment and maintenance of fund, duty of Director, assessments of regulants","url":"\/54.1-2113\/","token":"54.1\/II\/21\/2\/54.1-2113","metadata":false},{"id":61533,"structure_id":14466,"section_number":"54.1-2114","catch_line":"Recovery from fund generally","url":"\/54.1-2114\/","token":"54.1\/II\/21\/2\/54.1-2114","metadata":false},{"id":69136,"structure_id":14466,"section_number":"54.1-2115","catch_line":"Investigations","url":"\/54.1-2115\/","token":"54.1\/II\/21\/2\/54.1-2115","metadata":false},{"id":59654,"structure_id":14466,"section_number":"54.1-2116","catch_line":"Limitations upon recovery from fund; certain actions not a bar to recovery","url":"\/54.1-2116\/","token":"54.1\/II\/21\/2\/54.1-2116","metadata":false},{"id":62973,"structure_id":14466,"section_number":"54.1-2117","catch_line":"Participation by Board in proceedings","url":"\/54.1-2117\/","token":"54.1\/II\/21\/2\/54.1-2117","metadata":false},{"id":55845,"structure_id":14466,"section_number":"54.1-2118","catch_line":"Payment of claim; assignment of claimant's rights to Board","url":"\/54.1-2118\/","token":"54.1\/II\/21\/2\/54.1-2118","metadata":false},{"id":72764,"structure_id":14466,"section_number":"54.1-2119","catch_line":"Revocation of license of regulant upon payment from fund","url":"\/54.1-2119\/","token":"54.1\/II\/21\/2\/54.1-2119","metadata":false},{"id":83015,"structure_id":14466,"section_number":"54.1-2120","catch_line":"No waiver by Board of disciplinary action against regulant","url":"\/54.1-2120\/","token":"54.1\/II\/21\/2\/54.1-2120","metadata":false}],"previous_section":{"id":65698,"structure_id":14466,"section_number":"54.1-2113","catch_line":"Establishment and maintenance of fund, duty of Director, assessments of regulants","url":"\/54.1-2113\/","token":"54.1\/II\/21\/2\/54.1-2113","metadata":false},"next_section":{"id":69136,"structure_id":14466,"section_number":"54.1-2115","catch_line":"Investigations","url":"\/54.1-2115\/","token":"54.1\/II\/21\/2\/54.1-2115","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/54.1-2114\/","history_text":"

This law was first created in 1977. The record of its establishment is cataloged in chapter 69 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 1977 \u201cActs\u201d aren\u2019t available online. It has been modified 6 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 266; in 1987, chapter 555; in 1988, chapter 765; in 1996, chapter 115<\/a>; in 2006, chapter 723<\/a>; in 2015, chapter 409<\/a>.<\/p>","references":[{"id":59654,"section_number":"54.1-2116","catch_line":"Limitations upon recovery from fund; certain actions not a bar to recovery","order_by":null,"url":"\/54.1-2116\/"},{"id":62973,"section_number":"54.1-2117","catch_line":"Participation by Board in proceedings","order_by":null,"url":"\/54.1-2117\/"}],"refers_to":[{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"},{"id":85983,"section_number":"2.2-4019","catch_line":"Informal fact finding proceedings","order_by":null,"url":"\/2.2-4019\/"},{"id":69646,"section_number":"2.2-4025","catch_line":"Exemptions operation of this article; limitations","order_by":null,"url":"\/2.2-4025\/"},{"id":60222,"section_number":"54.1-2112","catch_line":"Definitions","order_by":null,"url":"\/54.1-2112\/"},{"id":59654,"section_number":"54.1-2116","catch_line":"Limitations upon recovery from fund; certain actions not a bar to recovery","order_by":null,"url":"\/54.1-2116\/"}],"permalink":{"id":240025,"object_type":"law","relational_id":61533,"identifier":"54.1-2114","token":"54.1\/II\/21\/2\/54.1-2114","url":"\/54.1-2114\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/54.1-2114\/","token":"54.1\/II\/21\/2\/54.1-2114","dublin_core":{"Title":"Recovery from fund generally","Type":"Text","Format":"text\/html","Identifier":"\u00a7 54.1-2114","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The claimant<\/span> shall not himself be (i) a regulant<\/span>, (ii) the personal representative of a regulant<\/span>, (iii) the spouse or child of the regulant<\/span> against whom the judgment<\/span> was awarded or the personal representative of such spouse or child, or (iv) a lending or financial institution or any person 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 is awarded a final judgment<\/span> in any court<\/span> of competent jurisdiction<\/span> in the Commonwealth of Virginia against any individual or entity for improper or dishonest conduct<\/span> as defined in the act<\/span>, and the improper or dishonest conduct<\/span> occurred during a period when the individual or entity was a regulant<\/span> and occurred in connection with a transaction involving the sale, lease, or management of real property by the regulant<\/span> acting in the capacity of a real estate broker<\/span> or real estate salesperson<\/span> and not in the capacity of a principal, or on his own account, the person to whom such judgment<\/span> was awarded may file a verified claim<\/span> with the Director<\/span> for a directive ordering payment from the fund<\/span> of the amount unpaid upon the judgment<\/span>, subject to the following conditions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> If any action is instituted against a regulant<\/span> by any person, such person shall serve a copy of the complaint upon the Board<\/span> by certified mail or the equivalent. <\/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>. The claimant<\/span> shall submit such copies to the Board<\/span> by certified mail, or the equivalent, upon his receipt of the pleading or document. <\/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<\/span> 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 a 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>, including any listings held by the regulant<\/span> and any commissions due thereby; 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

5.<\/span> If the judgment debtor<\/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 as defined in § 54.1-2112<\/a> and (ii) what amount, if any, such claimant<\/span> is entitled to recover from the Fund<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The Department shall promptly consider the verified claim<\/span>. If it appears that a prima facie case has been made for payment of the claim, the Department shall provide the regulant<\/span> with a notice offering the opportunity to be heard at an informal fact<\/span>-finding<\/span> conference pursuant to § 2.2-4019<\/a> of the Administrative Process Act<\/span> (§ 2.2-4000<\/a> et seq.). Such notice shall state that if the regulant<\/span> does not request an informal fact<\/span>-finding<\/span> conference within 30 days, with three days added in instances where the notice is sent by mail, the Department shall present the claim to the Board<\/span> with a recommendation to pay the verified claim<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A claimant<\/span> shall not be denied recovery from the Fund<\/span> due to the fact<\/span> that the order<\/span> for judgment filed with the verified claim<\/span> does not contain a specific finding<\/span> of improper or dishonest conduct<\/span>. Any language in the order<\/span> that supports the conclusion that the court found that the conduct of the regulant<\/span> meets the definition of improper or dishonest conduct<\/span> in § 54.1-2112<\/a> shall be used by the Board<\/span> to determine eligibility for recovery from the Fund<\/span>. To the extent the judgment order<\/span> is silent as to the court’s findings<\/span> on the conduct of the regulant<\/span>, the Board<\/span> may determine whether the conduct of the regulant<\/span> meets the definition of improper or dishonest conduct<\/span> by substantial evidence<\/span> in the verified claim<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> If the Board<\/span> finds that there has been compliance with the statutory conditions to which reference is made in this section, the Board<\/span> shall issue<\/span> a directive ordering payment to the claimant<\/span> from the fund<\/span> the amount unpaid on the judgment, subject to the limitations set forth in § 54.1-2116<\/a>. The claimant<\/span> shall be notified in writing of the findings<\/span> of the Board<\/span>. The Board<\/span>’s findings<\/span> shall be considered a “case decision” and judicial review of these findings<\/span> shall be in accordance with § 2.2-4025<\/a> of the Administrative Process Act<\/span> (§ 2.2-4000<\/a> et seq.). Notwithstanding any other provision of law<\/span>, the Board<\/span> shall have the right to appeal<\/span> a decision of any court which is contrary to any distribution recommended or authorized by it. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nRECOVERY FROM FUND GENERALLY (\u00a7 54.1-2114)\n\nA. The claimant shall not himself be (i) a regulant, (ii) the personal\nrepresentative of a regulant, (iii) the spouse or child of the regulant against\nwhom the judgment was awarded or the personal representative of such spouse or\nchild, or (iv) a lending or financial institution or any person whose business\ninvolves the construction or development of real property.\n\nB. Whenever any person is awarded a final judgment in any court of competent\njurisdiction in the Commonwealth of Virginia against any individual or entity\nfor improper or dishonest conduct as defined in the act, and the improper or\ndishonest conduct occurred during a period when the individual or entity was a\nregulant and occurred in connection with a transaction involving the sale,\nlease, or management of real property by the regulant acting in the capacity of\na real estate broker or real estate salesperson and not in the capacity of a\nprincipal, or on his own account, the person to whom such judgment was awarded\nmay file a verified claim with the Director for a directive ordering payment\nfrom the fund of the amount unpaid upon the judgment, subject to the following\nconditions:\n\n 1. If any action is instituted against a regulant by any person, such person\n shall serve a copy of the complaint upon the Board by certified mail or the\n equivalent.\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.\n The claimant shall submit such copies to the Board by certified mail, or the\n equivalent, upon his receipt of the pleading or document.\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.\n\n 4. Prior to submitting a 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,\n including any listings held by the regulant and any commissions due thereby;\n 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\n 5. If the judgment debtor has filed bankruptcy, the claimant shall file a\n claim with the proper bankruptcy court. If no distribution is made, or the\n distribution ordered fails to satisfy the claim, the claimant may then file a\n claim with the Board. The verified claim shall be received by the Board within\n 12 months of the date of bankruptcy discharge or dismissal. In the event the\n judgment is silent as to the conduct of the regulant, the Board shall\n determine (i) whether the conduct of the regulant that gave rise to the claim\n was improper or dishonest as defined in § 54.1-2112 and (ii) what amount,\n if any, such claimant is entitled to recover from the Fund.\n\nC. The Department shall promptly consider the verified claim. If it appears that\na prima facie case has been made for payment of the claim, the Department shall\nprovide the regulant with a notice offering the opportunity to be heard at an\ninformal fact-finding conference pursuant to § 2.2-4019 of the\nAdministrative Process Act (§ 2.2-4000 et seq.). Such notice shall state\nthat if the regulant does not request an informal fact-finding conference within\n30 days, with three days added in instances where the notice is sent by mail,\nthe Department shall present the claim to the Board with a recommendation to pay\nthe verified claim.\n\nD. A claimant shall not be denied recovery from the Fund due to the fact that\nthe order for judgment filed with the verified claim does not contain a specific\nfinding of improper or dishonest conduct. Any language in the order that\nsupports the conclusion that the court found that the conduct of the regulant\nmeets the definition of improper or dishonest conduct in § 54.1-2112 shall\nbe used by the Board to determine eligibility for recovery from the Fund. To the\nextent the judgment order is silent as to the court’s findings on the\nconduct of the regulant, the Board may determine whether the conduct of the\nregulant meets the definition of improper or dishonest conduct by substantial\nevidence in the verified claim.\n\nE. If the Board finds that there has been compliance with the statutory\nconditions to which reference is made in this section, the Board shall issue a\ndirective ordering payment to the claimant from the fund the amount unpaid on\nthe judgment, subject to the limitations set forth in § 54.1-2116. The\nclaimant shall be notified in writing of the findings of the Board. The\nBoard’s findings shall be considered a “case decision” and\njudicial review of these findings shall be in accordance with § 2.2-4025 of\nthe Administrative Process Act (§ 2.2-4000 et seq.). Notwithstanding any\nother provision of law, the Board shall have the right to appeal a decision of\nany court which is contrary to any distribution recommended or authorized by it.\n\nHISTORY: 1977, c. 69, \u00a7 54-765.4; 1984, c. 266; 1987, c. 555; 1988, c. 765;\n1996, c. 115; 2006, c. 723; 2015, c. 409.","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}}