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The Louisiana Real
Estate Recovery Fund was established for the purpose of
reimbursing persons adjudged to have suffered monetary
damages in the course of a real estate transaction wherein a
real estate licensee violated the
Louisiana Real Estate License Law. The fund is maintained at a
minimum level of four hundred thousand dollars.
Eligibility for the fund is established when a
claimant pursuing recovery from a licensee in
civil court proceedings has exhausted all avenues
of collection from the judgment debtor pursuant to
receiving a full judgment in a court of competent
jurisdiction. At the time the civil court action is
initiated, the claimant must notify the Commission by
certified mail and the Commission may intervene in
the judicial proceedings.
Payments for claims arising out of the same
transaction shall not exceed the aggregate limit of
twenty thousand dollars, regardless of the number of
claimants or parcels of real estate involved in the
transaction. Payments for claims based on a judgment
against any one licensee shall not exceed the
aggregate limit of fifty thousand dollars.
The
Commission may allow an aggrieved party to submit a
claim by notarized affidavit when the claim is based
on actions of one or more licensees who have been
sanctioned by the Commission in an adjudicatory
proceeding. if the hearing record corroborates the
affidavit submitted by the claimant and the amount
of the claim does not exceed two thousand dollars.
Payment from the recovery fund may not be made as
reimbursement for any damages other than actual
damages suffered by the claimant. Payment from the
fund for other costs related to or pursuant to civil
proceedings, such as attorney fees, court costs,
medical damages and punitive damages, is prohibited.
The
right to recover shall be forever barred unless
application is made within one hundred eighty days
from the date a person established eligibility to
recover from the Fund.
Detailed requirements for establishing eligibility
to recover from the Recovery Fund are specified in
Section 1462
of the Louisiana Real Estate License Law.
Related Links:
Recovery Fund Frequently Asked
Questions
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