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[Utah Code Table of Contents]
[TITLE 61. Table of Contents]
61-2a-1 Citation.
This act shall be known and may be cited as the "Real
Estate Recovery Fund Act."
1975
61-2a-2 Purpose.
The purposes of this chapter are as follows:
(1) To establish a Real Estate Education, Research, and Recovery Fund that shall reimburse the public out of the fund for damages up to $10,000 caused by real estate licensees in a real estate transaction. This chapter applies to damages caused by individual licensees. Reimbursement may not be made for judgments against corporations, partnerships, associations, or other legal entities.
(2) To provide revenue for improving the real estate profession
through education and research with the goal of making real
estate salesmen more responsible to the public.
1989
61-2a-3 Education, Research, and Recovery Fund.
There is created a restricted special revenue fund to
be known as the "Real Estate Education, Research, and Recovery
Fund." The actual interest earned on the Real Estate Education,
Research, and Recovery Fund shall be deposited into the fund.
At the commencement of each fiscal year, $100,000 shall be
available in the fund for satisfying judgments rendered against
persons licensed under Title 61, Chapter 2, Division of Real
Estate.
2002
61-2a-4 Additional license fee - Purpose.
(1) Each person who applies for or renews a real estate principal broker or associate broker license shall pay, in addition to the application or renewal fee, a reasonable annual fee of up to $18, as determined by the Division of Real Estate with the concurrence of the Real Estate Commission.
(2) Each person who applies for or renews a real estate sales agent license shall pay in addition to the application or renewal fee a reasonable annual fee of up to $12, as determined by the division with the concurrence of the commission.
(3) Notwithstanding Section
13-1-2
, the additional fees under this section shall
be paid into the Real Estate Education, Research, and Recovery
Fund to be used for the purposes of this chapter.
1993
61-2a-5 Notice to division - Judgment against real estate licensee - Fraud, misrepresentation, or deceit - Verified petition for order directing payment from fund - Limitations and procedure.
(1) A person may bring a claim against the Real Estate Education, Research, and Recovery Fund only if he sends a signed notification to the Division of Real Estate at the time he files an action against a real estate licensee alleging fraud, misrepresentation, or deceit. Within 30 days of receipt of the notice, the division shall have an unconditional right to intervene in the action. If the person making a claim against the fund obtains a final judgment in a court of competent jurisdiction in this state against the licensee based upon fraud, misrepresentation, or deceit in any real estate transaction, the person making the claim may, upon termination of all proceedings including appeals, file a verified petition in the court where the judgment was entered for an order directing payment from the Real Estate Education, Research, and Recovery Fund for the uncollected actual damages included in the judgment and unpaid. Recovery from the fund may not include punitive damages, attorney's fees, interest, or court costs. Regardless of the number of claimants or parcels of real estate involved in a transaction, the liability of the fund may not exceed $10,000 for a single transaction and $50,000 for any one licensee.
(2) A copy of the petition shall be served upon the Division of Real Estate of the Department of Commerce, and an affidavit of the service shall be filed with the court.
(3) The court shall conduct a hearing on the petition within 30 days after service. The petitioner shall recover from the fund only if he shows all of the following:
(a) He is not the spouse of the judgment debtor or the personal representative of the spouse.
(b) He has complied with this chapter.
(c) He has obtained a final judgment in the manner prescribed under this section, indicating the amount of the judgment awarded.
(d) He has proved the amount still owing on the judgment at the date of the petition.
(e) He has had a writ of execution issued upon the judgment, and the officer executing the writ has made a return showing that no property subject to execution in satisfaction of the judgment could be found. If execution is levied against the property of the judgment debtor, the petitioner shall show that the amount realized was insufficient to satisfy the judgment, and shall indicate the amount realized and the balance remaining on the judgment after application of the amount realized.
(f) He has made reasonable searches and inquiries to ascertain whether the judgment debtor has any interest in property, real or personal, that may satisfy the judgment, and he has exercised reasonable diligence to secure payment of the judgment from the assets of the judgment debtor.
(4) If the petitioner satisfies the court that it is not practicable for him to comply with one or more of the requirements enumerated in Subsections (3)(e) and (f), the court may waive those requirements.
(5) A judgment that is the basis for a claim against the
fund may not have been discharged in bankruptcy. In the case
of a bankruptcy proceeding that is still open or that is
commenced during the pendency of the claim, the claimant
shall obtain an order from the bankruptcy court declaring
the judgment and debt to be nondischargeable.
2000
61-2a-6 Real Estate Division - Authority to act upon receipt of petition.
(1) Upon receipt of a petition as required by Section 61-2a-5 , the Real Estate Division may answer, initiate review proceedings of its own, or appear in any proceeding in the name of the defendant to the action or on behalf of the fund.
(2) The division may, subject to court approval, compromise
a claim based upon the application of a petitioner.
1975
61-2a-7 Court determination and order.
If the court determines that a claim should be levied
against that portion of the fund allocated for the purpose
of carrying out the provisions of this act, the court shall
enter an order directed to the division requiring payment
from the fund of that portion of the petitioner's judgment
that is payable from the fund pursuant to the provisions
of and in accordance with the limitations contained in Section
61-2a-5
.
1975
61-2a-8 Insufficient funds to satisfy judgments - Procedure and interest.
If the money deposited in the fund and allotted for satisfying
judgments against licensees is insufficient to satisfy any
authorized claim for payment, the division shall, when sufficient
money has been deposited in the fund, satisfy the unpaid
claims in the order that they were originally filed, together
with accumulated interest at the rate of 8% per annum.
1983
61-2a-9 Division subrogated to judgment creditor - Authority to revoke license.
If the division makes payment from the fund to a judgment
creditor, the division shall be subrogated to all the rights
of the judgment creditor for the amounts paid out of the
fund and any amount and interest recovered by the division
shall be deposited in the fund. The license of any real estate
licensee for whom payment from the fund is made under this
chapter shall be automatically revoked. The licensee may
not apply for a new license until the amount paid out on
his account, plus interest at a rate determined by the Division
of Real Estate with the concurrence of the commission, has
been repaid in full.
>
1989
61-2a-10 Failure to comply with all provisions constitutes a waiver.
The failure of any person to comply with the provisions
of this chapter shall constitute a waiver of any rights provided
under it.
1983
61-2a-11 Director of Department of Commerce - Authority to take disciplinary action not limited.
Nothing contained in this chapter shall limit the authority
of the director of the Department of Commerce to take disciplinary
action against a licensee for a violation of any of the provisions
of Title 61, Chapter 2, or of the rules and regulations of
the Division of Real Estate. The repayment in full of all
obligations to the fund by any licensee does not nullify
or modify the effect of any other disciplinary proceeding
brought pursuant to the provisions of Title 61, Chapter 2,
or the rules and regulations promulgated by the commission.
1989
61-2a-12 Moneys accumulated - Excess set aside - Purpose.
Any of the money accumulated in the Real Estate Education,
Research and Recovery Fund in excess of $100,000 shall be
set aside and segregated to be used by the Real Estate Division
in carrying out the advancement of education and research
in the field of real estate, including courses sponsored
by the division, offered by the division in conjunction with
any university or college in the state, or provided for by
contracting for a particular research project in the field
of real estate for the state.
1983
