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324.420 Collection by aggrieved party from recovery fund.
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An aggrieved party may commence an administrative action which may result
in collection from the recovery fund by first filing a complaint with the
commission on a form prepared by the commission. The complaint shall
constitute a prima facie case that a licensee is in violation of KRS 324.160 and
is subject to the same conditions set forth in KRS 324.150. If the complaint
constitutes a prima facie case and the matter is not settled, the commission
shall hold a hearing pursuant to the requirements set forth in the provisions of
this chapter and KRS Chapter 13B to determine if a violation of this chapter
has in fact occurred. If a violation of fraud is so found, the commission shall
determine if the violation resulted in damages to complainant and in what
amount. If damages cannot be accurately determined, then the amount of
damages shall be determined by a Circuit Court in the county where the
violation took place. In the event the question of damages is referred to the
Circuit Court, the decision of the commission will not be final and appealable
until the question of damages is certifiable.
Upon final order by the commission or upon certification to the commission by
the Circuit Court on the issue of damages, and after the licensee has refused
to pay the claim within a period of twenty (20) days of entry of a final order, the
aggrieved party or parties shall be paid the amount or amounts by the
commission from the recovery fund.
The license of the licensee against whom the claim was made by the
aggrieved party shall be suspended or may be permanently revoked until such
time as the licensee has reimbursed the recovery fund in full for all amounts
paid, plus interest at the rate of ten percent (10%) per annum.
Any party aggrieved by a final order of the commission may appeal to the
Circuit Court where the licensee has his principal place of business or where
the applicant resides in accordance with KRS Chapter 13B.
Upon the final order of the court, and after the commission has paid from the
real estate education, research, and recovery fund any sum to the aggrieved
party, the commission shall be subrogated to all of the rights of the aggrieved
party to the extent of the payment. The aggrieved party shall to the extent of
the payment assign his right, title and interest in the judgment to the
commission. After such assignment, the commission may challenge in
bankruptcy court any attempt by a former licensee to discharge the debt, if
proper notice is given. Any funds recovered by the commission shall be
deposited in the real estate education, research, and recovery fund.
No aggrieved party shall be entitled to recover compensation from the real
estate education, research, and recovery fund unless the action against the
licensee is commenced within two (2) years from actual knowledge of the
cause of action or from the time when circumstances should reasonably have
put the aggrieved party on notice of the cause of action.
An aggrieved party shall not be entitled to recover compensation from the real
estate education, research, and recovery fund, unless the compensation is for
the actual financial harm suffered by the aggrieved party, and this financial
harm is specifically and directly related to the property.
For purposes of this section, an "aggrieved party" shall mean either:
(a)
A member of the consumer public who stands in a direct relationship to
the licensee, i.e., one who demonstrates an interest in purchasing,
leasing, renting, or otherwise securing an interest in real estate through a
licensee and who believes that the licensee is in violation of the
provisions of this chapter; or
(b) A member of the consumer public who directly engages the services of a
licensee for purposes of selling, leasing, renting, or otherwise dealing in
his or her own property.
(9) If at any time the money on deposit in the real estate education, research and
recovery fund is insufficient to satisfy any duly-authorized claim or portion
thereof, the commission shall, when sufficient money has been deposited in
the real estate education, research, and recovery fund, satisfy such unpaid
claim or portions thereof, in the order that such claims or portions were
originally filed, plus accumulated interest at the rate of ten percent (10%) per
annum.
(10) Any funds in excess of the four hundred thousand dollar ($400,000) level which
are not being currently used, may be invested and reinvested as set forth in
subsection (2) of KRS 324.410.
Effective:June 25, 2009
History: Amended 2009 Ky. Acts ch. 58, sec. 12, effective June 25, 2009. -Amended 2000 Ky. Acts ch. 488, sec. 32, effective July 14, 2000. -- Amended
1996 Ky. Acts ch. 318, sec. 292, effective July 15, 1996. -- Amended 1986 Ky.
Acts ch. 345, sec. 5, effective July 15, 1986. -- Amended 1982 Ky. Acts ch. 196,
sec. 33, effective July 15, 1982. -- Created 1972 Ky. Acts ch. 51, sec. 3.
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