(a)The Commission shall establish and maintain a Real Estate Guaranty Fund (hereinafter referred to as the “Fund”) from which, subject to this section, any person who obtains a final judgment against a licensee for loss or damage sustained by reason of theft or forgery (as defined in Title 11) or by reason of any fraud, misrepresentation or deceit by or on the part of any such licensee or any employee thereof who does not hold a license, may recover, after a hearing and on order of the Commission, compensation in an amount not exceeding in the aggregate the sum of $25,000 in connection with any 1 transaction or claim, regardless of the number of persons aggrieved or parcels of real estate involved in such transaction or claim.
(b)If the aggrieved person obtains a final judgment against
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(a) The Commission shall establish and maintain a Real Estate Guaranty Fund (hereinafter referred to as the “Fund”) from which, subject to this section, any person who obtains a final judgment against a licensee for loss or damage sustained by reason of theft or forgery (as defined in Title 11) or by reason of any fraud, misrepresentation or deceit by or on the part of any such licensee or any employee thereof who does not hold a license, may recover, after a hearing and on order of the Commission, compensation in an amount not exceeding in the aggregate the sum of $25,000 in connection with any 1 transaction or claim, regardless of the number of persons aggrieved or parcels of real estate involved in such transaction or claim.
(b) If the aggrieved person obtains a final judgment against a licensee for loss or damage sustained by reason of theft or forgery (as defined in Title 11) or by reason of fraud, misrepresentation or deceit by or on the part of such licensee or employee thereof who does not hold a license, such aggrieved person may file a verified claim with the Commission seeking an order directing payment from the Fund of any amount unpaid upon the judgment, subject to the limitations stated in subsection (a) of this section and this subsection. The verified claim shall be filed within 60 days after the final judgment has been obtained. The verified claim shall include a copy of the complaint, counterclaim or cross-claim, if any, a certified copy of the judgment and copies of any documentation relating to steps taken to collect on the judgment. The Commission shall proceed upon such claim in a summary manner and, upon the hearing thereof, the aggrieved person shall be required to show:
(1) That the aggrieved person is not a spouse of the judgment debtor or the personal representative of said spouse;
(2) That the aggrieved person has complied with all the requirements of this section;
(3) That the aggrieved person has obtained a final judgment as set out in this subsection, stating the amount thereof and the amount owing thereon at the date of the filing of the aggrieved person’s verified claim; and
(4) That the aggrieved person has fully pursued and exhausted all available remedies and taken all reasonable steps to collect the amount of the judgment, stating the total amount collected.
(c) If the Commission is satisfied that the aggrieved person has satisfied all the requirements of this section and is entitled to recover compensation from the Fund, it shall enter an order requiring payment from the Fund of whatever sum it shall find to be payable upon the claim, subject to the limitations of subsection (a) of this section. The Commission, in its discretion, may authorize payment of an amount from the Fund less than the claim made pursuant to this subsection.
(d) If the Commission pays from the Fund any amount in settlement of a claim or toward satisfaction of a judgment against a licensee, the license of such licensee may be suspended or revoked by the Commission and, in the discretion of the Commission, such licensee shall be ineligible to receive a new license until the licensee has repaid in full, plus interest at the legal rate, the amount paid from the Fund on the licensee’s account. A discharge in bankruptcy shall not relieve a licensee from the penalties and disabilities provided in this subsection.
(e) If at any time the money on deposit in the Fund is insufficient to satisfy any duly authorized claim or portion thereof, the Commission shall, when sufficient money has been deposited in the Fund, satisfy such unpaid claims or portions thereof in the order that such claims or portions thereof were originally filed pursuant to subsection (b) of this section, plus accumulated interest at the legal rate.
(f) Any person filing with the Commission any notice, statement or other document required under subsection (b) of this section which is false or untrue or contains any material misstatement of fact shall be fined not less than $500 nor more than $5,000.
(g) When, upon the order of the Commission or pursuant to a compromise, the Commission has caused to be paid from the Fund any sum to a judgment creditor, the Commission shall be subrogated to all of the rights of the judgment creditor up to the amount paid and the judgment creditor shall assign all of that judgment creditor’s right, title and interest in the judgment up to such amount paid by the Commission, and any sums recovered by the Commission on the judgment shall be deposited to the Fund.
(h) Each licensee shall pay a fee of $25 which shall be credited to the Fund; provided, that in no case shall any licensee be required to pay said fee of $25 more than once, unless assessed as provided in subsection (i) of this section.
(i) The Commission shall, at all times, maintain the Fund at a level in excess of $250,000, and to this intent all moneys received pursuant to subsection (g) of this section shall be credited to said Fund and held in a special account other than the General Fund prescribed by § 6102(a) of Title 29. Said account shall be an interest-bearing account and the interest accruing from the funds on deposit in the account shall be credited to the Commission to defray the costs of administering the Fund; for seminars within the State and for continuing education for licensees within the State; and to reimburse Commissioners, their administrative staff and legal counsel for expenses paid to attend meetings of the Association of Real Estate License Law Officials.
(j) If the balance of the Fund should fall below the $250,000 level, the Commission shall, at the next license renewal date, assess each licensee a pro rata fee in such amount that the Fund will be returned to the $250,000 level.
(k) Any person aggrieved by any action, decision, order or regulation of the Commission may appeal to the Superior Court.