A Virginia buyer suffered a $22,000 financial loss because a licensed real estate salesperson made fraudulent misrepresentations during a transaction. The buyer filed a civil lawsuit and obtained a final judgment against the salesperson, who has since declared bankruptcy and cannot pay. The buyer now wants to recover the loss. Under Virginia law, what is the buyer's next appropriate step?
Correct Answer
B) Apply to the Virginia Real Estate Transaction Recovery Fund after obtaining the final civil judgment
Under Va. Code § 54.1-2112 et seq., the Virginia Real Estate Transaction Recovery Fund provides reimbursement to consumers who suffer financial losses caused by the fraudulent or dishonest conduct of a licensed real estate professional. A critical procedural requirement is that the claimant must FIRST obtain a final civil judgment against the licensee before applying to the fund. Since the buyer has already obtained a judgment and the salesperson cannot pay, applying to the Recovery Fund is the correct next step.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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