                                 CODE OF VIRGINIA

RECOVERY FROM FUND GENERALLY (§ 54.1-1120)

A. The claimant shall be (i) an individual whose contract with the regulant
involved contracting for the claimant&#8217;s residence located in the
Commonwealth or (ii) a property owners&#8217; association as defined in &#xA7;
55.1-1800 whose contract with the regulant involved contracting for improvements
to the common areas owned by the association.
			The 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. 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:

   1. 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.

   2. 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.

   3. 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.

   4. Prior to submitting the verified claim, the claimant shall:
   				a. Conduct or make a reasonable attempt to conduct debtor&#8217;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
   				b. Take all legally available actions for the sale or application of any
   assets disclosed in the debtor&#8217;s interrogatories.

C. 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.

HISTORY: 1980, c. 635, § 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.