{"data":{"id":"us-ky/krs-324.420","jurisdiction":"us-ky","citation":"KRS 324.420","heading":"Collection by aggrieved party from recovery fund.","body":"(1) An aggrieved party may commence an administrative action which may result in\ncollection from the recovery fund by first filing a complaint with the commission on\na form prepared by the commission. The complaint shall constitute a prima facie\ncase that a li censee is in violation of KRS 324.160 and is subject to the same\nconditions set forth in KRS 324.150. If the complaint constitutes a prima facie case\nand the matter is not settled, the commission shall hold a hearing pursuant to the\nrequirements set forth in the provisions of this chapter and KRS Chapter 13B to\ndetermine if a violation of this chapter has in fact occurred. If a violation of fraud is\nso found, the commission shall determine if the violation resulted in damages to\ncomplainant and in what amou nt. If damages cannot be accurately determined, then\nthe amount of damages shall be determined by a Circuit Court in the county where\nthe violation took place. In the event the question of damages is referred to the\nCircuit Court, the decision of the commi ssion will not be final and appealable until\nthe question of damages is certifiable.\n(2) Upon final order by the commission or upon certification to the commission by the\nCircuit Court on the issue of damages, and after the licensee has refused to pay the\nclaim within a period of twenty (20) days of entry of a final order, the aggrieved\nparty or parties shall be paid the amount or amounts by the commission from the\nrecovery fund.\n(3) The license of the licensee against whom the claim was made by the aggrieved party\nshall be suspended or may be permanently revoked until such time as the licensee\nhas reimbursed the recovery fund in full for all amounts paid, plus interest at the\nrate of ten percent (10%) per annum.\n(4) Any party aggrieved by a final order of t he commission may appeal to the Circuit\nCourt where the licensee has his principal place of business or where the applicant\nresides in accordance with KRS Chapter 13B.\n(5) Upon the final order of the court, and after the commission has paid from the real\nestate education, research, and recovery fund any sum to the aggrieved party, the\ncommission shall be subrogated to all of the rights of the aggrieved party to the\nextent of the payment. The aggrieved party shall to the extent of the payment assign\nhis righ t, title and interest in the judgment to the commission. After such\nassignment, the commission may challenge in bankruptcy court any attempt by a\nformer licensee to discharge the debt, if proper notice is given. Any funds recovered\nby the commission shall be deposited in the real estate education, research, and\nrecovery fund.\n(6) No aggrieved party shall be entitled to recover compensation from the real estate\neducation, research, and recovery fund unless the action against the licensee is\ncommenced within one (1) year from actual knowledge of the cause of action or\nfrom the time when circumstances should reasonably have put the aggrieved party\non notice of the cause of action.\n(7) An aggrieved party shall not be entitled to recover compensation from the rea l\nestate education, research, and recovery fund, unless the compensation is for the\nactual financial harm suffered by the aggrieved party, and this financial harm is\nspecifically and directly related to the property.\n(8) For purposes of this section, an \"aggrieved party\" shall mean either:\n(a) A member of the consumer public who stands in a direct relationship to the\nlicensee, i.e., one who demonstrates an interest in purchasing, leasing, renting,\nor otherwise securing an interest in real estate through a l icensee and who\nbelieves that the licensee is in violation of the provisions of this chapter; or\n(b) A member of the consumer public who directly engages the services of a\nlicensee for purposes of selling, leasing, renting, or otherwise dealing in his or\nher own property.\n(9) If at any time the money on deposit in the real estate education, research and\nrecovery fund is insufficient to satisfy any duly -authorized claim or portion thereof,\nthe commission shall, when sufficient money has been deposited in the  real estate\neducation, research, and recovery fund, satisfy such unpaid claim or portions\nthereof, in the order that such claims or portions were originally filed, plus\naccumulated interest at the rate of ten percent (10%) per annum.\n(10) Any funds in excess of the four hundred thousand dollar ($400,000) level which are\nnot being currently used, may be invested and reinvested as set forth in subsection\n(2) of KRS 324.410.","path":["KRS Chapter 324"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49036","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:19Z","sha256":"8aeb22dd3ed2192a2ffc1c55eed5513d6288f3cc82748b37f84c926bb3659da7","source_id":"us-ky","stale":false,"prev":"us-ky/krs-324.410","next":"us-ky/krs-324.425"},"notice":"GroundRules: Original legal text. Not legal advice."}