3100. Definitions.
As used in this Article, the following definitions will apply:
(a) “Recovery Account” means the separate account in the Real Estate Fund established pursuant to Section 10450.6 of
the Code for purposes of carrying out the provisions of Chapter 6.5 of the Real Estate Law.
(b) “Application” means an application for payment from the Recovery Account filed with the Bureau pursuant to
Section 10471(a) of the Code.
(c) “Party” means either the claimant, the judgment debtor, or the Bureau.
(d) “Claimant” means an aggrieved person who filed an application pursuant to Section 10471(a) of the Code.

(e) “Person” includes corporation, partnership, company or firm.
(f) “Final Judgment” means a judgment, arbitration award, or criminal restitution order for which the period for appeal
has expired, enforcement of which is not barred by the order of any court or by any statutory provision, and which has
not been nullified or rendered void by any court order or statutory provision.

(g) “Court of Competent Jurisdiction” means a small claims, municipal or superior court of the State of California, or a
United States district court or United States bankruptcy court sitting to conduct its affairs within the boundaries of the
State of California.
(h) “County in Which a Judgment Was Rendered” means the county within California in which the court issuing the
judgment or restitution order sits or, if the claim is based on an arbitration award, the county in which the arbitration
was conducted, or in which the claimant resides.

(i) Where appropriate to the context the singular number includes the plural and the plural number includes the singular.

3101. Application for Payment from Recovery Account.
(a) An application for payment from the Recovery Account shall be made on a form prescribed by the Bureau, shall
contain the items specified by Section 10471(c) of the Code, and shall contain all of the information specified in Section
3102, except as provided in subdivision (b) of this section. The application shall be verified by the claimant in the
manner specified in Section 446 of the Code of Civil Procedure for the verification of a pleading. If executed outside
of California, the information in the application and accompanying documents shall be verified before a person qualified
to administer oaths within the jurisdiction where executed or certified under penalty of perjury in accordance with the
provisions of subdivision (b) of Section 2015.5 of the Code of Civil Procedure.
(b) The claimant may submit with the application less than all of the information defined by Section 3102 of these
regulations as constituting a substantially complete application if the claimant believes that the information submitted
with the application is sufficient for the Bureau to determine whether the application qualifies under Sections 10470
through 10481 of the Code for payment from the Recovery Account. However, an application will not be deemed
substantially complete within the meaning of Section 3102 of these regulations unless:
(1) The Bureau determines that what has been submitted is sufficient for it to make a determination whether the
application qualifies for payment from the Recovery Account and so notifies the claimant as provided in Section
3105 of these regulations; or

(2) The application and supporting information meet all of the requirements specified in Section 3102 of these
regulations.
(c) If any documents or other attachments are submitted with the application, the application shall contain a verification
by the claimant that the documents are true and correct copies of the originals, and if such documents purport to be
copies of documents filed in court that they are true and correct copies of the originals filed with the court.
(d) The application shall contain the name and address of the claimant, and if the claimant is not being represented by
an attorney in the filing of the application, a telephone number where the claimant can be reached during regular
business hours. If the claimant is represented by an attorney in filing of the application, the application shall contain the
name, business address, and telephone number of the attorney.

3102. Substantially Complete Application.
Except as provided in Section 3101 of these regulations, an application for payment from the Recovery Account is
“substantially complete” within the meaning of Section 10471.2(b) of the Code if it contains all of the documents and
information enumerated below:
(a) Proof that the judgment debtor was served with the Notice and Application.
(b) A copy of the judgment showing it to be a final judgment as defined in this article, and any findings of facts,
conclusions of law, jury verdicts, jury special verdicts, statements of decisions, memorandum decisions, or any other
indication by the court or jury, as the case may be, of its decision and the reasons for the decision. If the original
judgment was appealed, copies of the appellate decision and remittitur.
(c) Copies of the original complaint, answer, cross-complaints, answers to cross-complaints, and all amendments or
other subsequent versions of any of those documents.
(d) Copies of any pre-trial or post-trial briefs or settlement conference statements.

(e) A listing of all depositions and interrogatories taken in the underlying action, describing the party or parties taking
the deposition or pro pounding the interrogatories, the deponent or person responding to interrogatories, and all persons
present at any deposition.
(f) Copies of any demurrers or motions for summary judgment, supporting documents, and rulings thereon.
(g) Copies of all documents reflecting the terms of the underlying transaction, including for example offers,
counteroffers, escrow instructions, closing statements, deeds, notes and deeds of trust.
(h) A detailed narrative description by the claimant under penalty of perjury of all the facts of the underlying transaction,
including how the claimant was damaged by the judgment debtors, and the roles of all other persons involved in the
transaction (such as other brokers or salespersons, sellers and buyers).
(i) A description by the claimant of the basis for each element of damages.
(j) If the only judgment debtor was a salesperson, a statement as to why the responsible broker was not either sued or
taken to judgment.
(k) If any codefendants were dismissed from the underlying lawsuit, a statement of the reason for dismissal as to each
such codefendant.
(l) A list of the names of any witnesses who testified at the underlying trial and the present or last known addresses of
the witnesses to the extent known by the claimant.
(m) A description of searches and inquiries conducted by or on behalf of the claimant with respect to the assets of the
judgment debtor and the assets of all other persons liable to the claimant in the transaction which assets may be liable
to be sold or applied to the losses suffered by the claimants, an itemized valuation of the assets discovered, and the
results of actions by the claimant to have the assets applied to the losses suffered by the claimant.
(n) If the claimant claimed any loss related to the transaction as a deduction on the claimant’s tax return or returns, a
description of the amount of the tax benefit derived therefrom.
(o) A statement whether the judgment debtor is known to have filed bankruptcy. If so, a statement whether the claimant
was named as a creditor in the bankruptcy, filed a claim in the bankruptcy, and pursued an adversary complaint to have
the debt determined to be nondischargeable. If the judgment debtor filed bankruptcy and the claimant failed to take any
of the foregoing actions, a statement as to why the claimant failed to take such actions.
(p) Abstracts of judgment bearing evidence of having been recorded in the county or counties in which the judgment
debtor may possibly have assets.
(q) If any of the above items are not included in the initial application, or are requested in a deficiency letter and not
supplied, a statement under penalty of perjury that the claimant has made a diligent effort to locate and produce the
items but has been unable to locate them or has found that they do not exist.

(r) All documents or copies of documents submitted to meet the requirements of this section must be clear and legible.



(s) Certification by the claimant that all documents submitted are true and correct copies of the originals, and if such
documents purport to be copies of documents filed in court, that they are true and correct copies of the originals filed
with the court.

3103. Response by Judgment Debtor.
(a) The response by a judgment debtor must contain a verification that a copy of the response was sent to the claimant,
or if the claimant is represented by an attorney, to the claimant’s attorney, at the address specified in the application for
the claimant or his or her attorney.
(b) If the judgment debtor is not represented by an attorney in objecting to payment of the application, the response
must contain the judgment debtor’s name, the address at which he or she wishes to receive correspondence and notices
relating to the application, and a telephone number where he or she can be reached during regular business hours. If the
judgment debtor is represented by an attorney in objecting to the application, the response must contain the name,
business address, and telephone number of the attorney.

3104. Subsequent Service of Correspondence and Notices.
After initial service of the application on the Bureau and the judgment debtor by the claimant as provided by sections
10471(b) and 10471.1(a) and (b), and after service of a response by the judgment debtor as provided by section
10471.1(c) of the Code and section 3103 of these regulations, all parties shall be served with subsequent correspondence
and notices by first class mail as follows:
(a) The Bureau shall be served at:
Bureau of Real Estate
Recovery Account Unit
P.O. Box 137007
Sacramento, CA 95813-7007
(b) The claimant shall be served at his or her address as specified in the application, or if the claimant is represented by
an attorney, at the address of the attorney as specified in the application.
(c) The judgment debtor shall be served at his or her address as specified in the response, or if the judgment debtor is
represented by an attorney as specified in the response.
If the claimant or judgment debtor later wishes to be served at an address other than as specified above, such party shall
notify the other parties by first class mail of the new address.

3106. Procedures to be Followed when Judgment Debtor has Filed a Response.
(a) A judgment debtor who has filed a response objecting to payment to a claimant from the Recovery Account may
submit written argument setting forth in detail the factual and legal bases upon which he or she believes the application
should be denied. Such argument may be submitted at any time from the filing of the response until 30 days after the
date of mailing of the Notice set forth in Section 10471.1(c) of the Code, and shall be served upon the Bureau and the
claimant as specified in Section 3104 of these regulations.
(b) The claimant shall have 30 days after the mailing of argument by the judgment debtor in which to submit his or her
own argument in favor of payment. Such argument by the claimant shall be served upon the Bureau and the judgment
debtor as provided in Section 3104 of these regulations.

3107. Unreasonable Delay by Claimant in Responding to Deficiency Letter.
(a) In the event that the Bureau has mailed one or more itemized lists of deficiencies to a claimant as provided by Section
10471.2(a) of the Code, and if after an unreasonable length of time the Bureau has received no response to the latest
such list of deficiencies, the Bureau may notify the claimant that unless the application is substantially complete within
a specified period of time of not less than 30 days, the application will be denied.
(b) The determination of what constitutes an unreasonable length of time shall be within the discretion of the
Commissioner, taking into account the degree of difficulty in meeting the deficiencies specified. However, an
“unreasonable length of time” shall not be deemed to be less than six months after the last mailing of a list of
deficiencies.
(c) If no response has been received from the claimant after the passing of the deadline specified by the Bureau pursuant
to subdivision (a) of this section, the Commissioner may deny the application.

3109. Procedure Upon Filing of Writ of Mandamus by Judgment Debtor.
(a) If the decision of the Commissioner is to make a payment out of the Recovery Account, and the judgment debtor
files a writ of mandamus as provided in Section 10471.5(c) of the Code, no payment shall be made of the pending
application unless and until the writ of mandamus has been denied and such denial has become final.
(b) If such writ of mandamus is granted on the basis that the claimant has not met the requirements for payment from
the Recovery Account, the application shall be denied.




















































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