                                 CODE OF VIRGINIA

PROTECTION OF ESCROW FUNDS, ETC., HELD BY BROKER (§ 54.1-2108)

No licensee or any agent of the licensee shall divert or misuse any funds held
in escrow or otherwise held by him for another. Where escrow funds or other
funds are held by the licensee or his agents and the Real Estate Board or its
agents have reason to believe that the licensee is not able to adequately
protect the interests of persons involved, or his conduct threatens their
interests, the Board shall file a petition with any court of record having
equity jurisdiction over the licensee or any of the funds held by him stating
the facts upon which it relies. The court may temporarily enjoin further
activity by the licensee and take such further action as shall be necessary to
conserve, protect and disburse the funds involved, including the appointment of
a receiver. If a receiver is appointed his expenses and a reasonable fee as
determined by the court shall be paid by the licensee. If the court finds him
unable to make such payment, the Board shall determine whether the expenses and
fees shall be paid from the Virginia Real Estate Transaction Recovery Fund or
from funds received by the Board. Such determination shall be made within thirty
days of the Board&#8217;s receipt of the court-approved receiver invoices. If
the court finds that the licensee was without fault and that he is found not to
have violated any provisions of this chapter or of the regulations of the Board,
then the receiver&#8217;s expenses and fees shall be paid by the Board. Such
payments shall be paid from funds received by the Board.

HISTORY: 1973, c. 487, § 54-764.5; 1988, c. 765; 1997, c. 82; 1998, c. 29.