A California buyer wins a court judgment against a broker for fraud committed in a real estate transaction. The broker has no assets and no errors-and-omissions coverage. Where may the buyer turn for payment?
Correct Answer
B) The Consumer Recovery Account, after showing the judgment cannot be collected
Business and Professions Code §10471 allows an injured person to apply to the Consumer Recovery Account on a final judgment, or a qualifying arbitration award with findings of fact and conclusions of law, based on the licensee's fraud, misrepresentation or deceit made with intent to defraud, or conversion of trust funds, arising out of a transaction requiring a real estate license. The applicant must sue first, obtain the judgment, and show that reasonable efforts to collect have failed. Statutory per-transaction and per-licensee caps limit what the account will pay. A licensee whose conduct produced the payment has the license suspended until the account is repaid with interest.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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