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There is established within the general fund a real estate education and recovery account, referred to as the “account” in this section. All funds received by the commission under this section shall be deposited into the account and held solely for the purposes of this section. The commission shall maintain a minimum balance of five hundred thousand dollars ($500,000) in the account.
Moneys within the account shall be invested by the state treasurer in accordance with § 9-4-603 for the sole benefit of the account.
When any individual applies for an original license as a broker, affiliate broker or time-share salesperson, the applicant shall pay, in addition to the original license fee, a fee in an amount established by the commission for deposit into the account. If the commission refuses to issue a license, this fee shall be returned to the applicant.
In addition, the commission may assess each individual broker, affiliate broker and time-share salesperson, as a condition for renewal of the individual's license, a fee, in addition to the renewal fee, not to exceed thirty dollars ($30.00), for the purpose of ensuring that the required minimum balance is maintained in the account.
Any person may, by order of any court having competent jurisdiction, recover from the account actual or compensatory damages, not including interest and costs, resulting from any violation of this chapter or of any rule promulgated under this chapter committed by a broker, affiliate broker or time-share salesperson; provided, that:
The liability of the account shall not exceed fifteen thousand dollars ($15,000) per transaction, regardless of the number of persons aggrieved or parcels of real estate involved in the transaction;
The liability of the account for the acts of a broker, affiliate broker or time-share salesperson, when acting as a broker, affiliate broker or time-share salesperson, shall be terminated upon the issuance of court orders authorizing payments from the account for judgments, or any unsatisfied portion of judgments, in an aggregate amount of thirty thousand dollars ($30,000) on behalf of the broker, affiliate broker or time-share salesperson;
A broker, affiliate broker or time-share salesperson acting as an agent in a real estate transaction shall have no claim against the account; and
A bonding company not acting as a principal in a real estate transaction shall have no claim against the account.
When any aggrieved person commences action for a judgment that may result in collection from the account, the person shall promptly notify the commission to this effect in writing, by certified mail, return receipt requested. The commission may, subject to the approval of the attorney general and reporter, take any action it may deem appropriate to protect the integrity of the account.
When any aggrieved person obtains a valid judgment respecting which recourse against the account is permitted under this section, upon termination of all proceedings including reviews and appeals in connection with the judgment and all or any part of the judgment is unpaid after sixty (60) days, and the person has exhausted all remedies at law, including, but not limited to, attachment, execution, levy and garnishment, to satisfy the judgment, the person may apply to the court in which the judgment was entered for an order directing payment from the account of the amount unpaid upon the judgment. Upon determination of the court that the judgment or any part of the judgment is unpaid and all required attempts to secure satisfaction have been made, the court shall enter an order directing the commission to make payment from the account to satisfy the judgment.
If the commission, pursuant to a court order, pays any amount from the account on behalf of a licensed broker, affiliate broker or time-share salesperson, the license of the broker, affiliate broker or time-share salesperson may, in the discretion of the commission, be suspended or revoked. No broker, affiliate broker or time-share salesperson whose license is revoked under this subsection (g) shall be eligible to apply for a new license until that person has repaid in full the amount paid from the account on that person's behalf, plus interest at the effective earnings rate for the account for the period the claim is unpaid.
When, upon the order of the court, the commission has paid from the account any sum to the judgment creditor, the commission shall be subrogated to all of the rights of the judgment creditor in the judgment. Any amount recovered by the commission on the judgment shall be deposited to the account. If the total amount collected on the judgment by the commission exceeds the amount paid from the account to the original judgment creditor plus interest and the cost of collection, the commission may elect to pay such coverage or reassign the remaining interest in the judgment to the original judgment creditor. The payment or reassignment to the original judgment creditor shall not subject the account to further liability for payment to the original judgment creditor based on that transaction or judgment. Any costs incurred by the commission in attempting to collect judgments shall be paid from the account.
If, at any time, the money deposited in the account is insufficient to satisfy any duly authorized claim or portion of the claim, the commission shall, when sufficient money has been deposited in the account, satisfy the unpaid claims or portions of the unpaid claims in the order that they were originally filed, plus interest at the effective earnings rate for the account for the period the claim is unpaid.
The failure of an aggrieved person to comply with all of the provisions of this section shall constitute a waiver of any rights under this section.
It is unlawful for any person to file or cause to be filed with the commission any notice, statement or other document required under this section that is false or contains any material misstatement of fact.
The commission may, in its discretion, utilize any return on investment of the account to cover expenses incurred in the performance of functions authorized by §§ 62-13-107 and 62-13-108 or in the preparation and dissemination of information for the benefit of licensees; provided, that the commission shall not expend or commit sums for any such purpose in an amount that would reduce the account to a balance of less than five hundred thousand dollars ($500,000).
No state funds shall be expended to effectuate this section other than the fees and charges set forth in this section.