58-3068. Recovery revolving fund; use of moneys, limitations.
58-3068
58-3068. Recovery revolving fund; use of moneys,limitations.(a) Except as provided in subsection (d), moneys in thereal estate recovery revolving fund shall be used in the manner provided bythis act to reimburse persons who suffer monetary damages by reason of any ofthe following acts committed in connectionwith any transaction involving the sale of real estate in this state byany broker or salesperson who was licensed under the laws of this stateat the time the act was committed or by any unlicensed employee of suchbroker or salesperson:
(1) Violation of any of the following provisions of this act:
(A) K.S.A. 58-3061 and amendments thereto; or
(B) subsection (a)(1), (2), (13), (18), (19)or (25) orsubsection (b)(2) ofK.S.A. 58-3062 and amendments thereto; or
(2) violation of any provision of the brokerage relationships in realestate transactions act; or
(3) obtaining money or property by any act which would constituteany crime defined by K.S.A. 21-3701, 21-3704, 21-3705, 21-3707,21-3710, 21-3711 or 21-3712, and amendments thereto.
(b) Any person may seek recovery from the real estate recoveryrevolving fund under the following conditions:
(1) Such person has received final judgment in a court of competentjurisdiction of this state in any action wherein the cause of action wasbased on any of the acts described in subsection (a);
(2) the claim is made within two years after thedate that final judgment is entered;
(3) such person has caused to be issued a writ of execution uponsuch judgment, and the officer executing the same has made a returnshowing that no personal or real property of the judgment debtor liableto be levied upon in satisfaction of the judgment could be found, orthat the amount realized on the sale of the judgment debtor's propertypursuant to such execution was insufficient to satisfy the judgment;
(4) such person has made all reasonable searches and inquiries toascertain whether the judgment debtor is possessed of real or personalproperty or other assets, subject to being sold or applied insatisfaction of the judgment, and by such search such person hasdiscovered no such property or assets, or that such person hasdiscovered such property and assets and that such person has taken allnecessary action and proceedings for the application thereof to thejudgment and that the amount thereby realized was insufficient tosatisfy the judgment;
(5) any amounts recovered by such person from the judgment debtor,or from any other source, has been applied to the damages awarded by thecourt; and
(6) such person is not a person who is precluded by subsection (c)from making a claim for recovery.
(c) A person shall not be qualified to make a claim for recoveryfrom the real estate recovery revolving fund, if:
(1) The person is the spouse of the judgment debtor or a personalrepresentative of such spouse;
(2) the person acted asprincipal or agent in the real estate transaction which is the subjectof the claim and is a licensed broker or salesperson or is a partnership,association, limited liability company or corporation whose partners,members, officers and employees are licensedas provided by subsection (b) of K.S.A. 58-3042 and amendments thereto; or
(3) such person's claim is based upon a real estate transaction inwhich the licensed broker or salesperson was acting on the broker's orsalesperson's own behalf with respect to property owned or controlled bysuch broker or salesperson.
(d) At any time that the balance remaining in the real estate recoveryrevolving fund is greater than $250,000, any amount over $250,000 may be usedby the commission for the following purposes:
(1) Production and distribution of an agency newsletter;
(2) monitoring education courses;
(3) expansion of materials available for consumers; and
(4) education grants to high schools and universities for course materials onmoney management and home ownership.
History: L. 1980, ch. 164, § 35;L. 1981, ch. 304, § 4;L. 1986, ch. 210, § 3;L. 1986, ch. 209, § 18;L. 1989, ch. 167, § 8;L. 1992, ch. 120, § 2;L. 1995, ch. 252, § 23;L. 1996, ch. 212, § 10;Revived, L. 1997, ch. 65, § 20;L. 1997, ch. 65, § 21;L. 2008, ch. 155, § 8; July 1.