A Virginia buyer applied to the Real Estate Transaction Recovery Fund after suffering a $30,000 loss due to a licensee's fraud. VREB reviewed the application and found it procedurally complete. However, the licensee had previously caused losses to three other consumers, and the fund's per-licensee cap had already been reached by those earlier claims. What is the most likely outcome for this buyer's claim?
Correct Answer
A) The buyer may receive a reduced or no payment because the per-licensee cap limits total recovery against a single licensee.
Under Va. Code § 54.1-2112 et seq., the Virginia Real Estate Transaction Recovery Fund imposes both per-transaction and per-licensee caps on recovery. If multiple consumers have already filed valid claims against the same licensee and the per-licensee cap has been exhausted, subsequent claimants may receive a reduced payment or no payment at all from the fund. The fund is designed as a last resort with finite limits, not an unlimited guarantee of full recovery.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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