Hawaii Administrative Rules
Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
Chapter 99 - REAL ESTATE BROKERS AND SALESPERSONS
Subchapter 7 - RECOVERY FUND
Section 16-99-79 - Recovery fund settlement procedures
Current through February, 2024
Upon the occurrence of all of the following, the commission may settle any subsequent claim against the real estate recovery fund involving a licensee that was previously named in an order and on whose behalf the commission had been required to make payments out from the recovery fund:
(1) The claimant is seeking recovery against the same licensee as named in an order for which the commission had been required to make a payment from the recovery fund;
(2) The claimant is similarly situated as the claimant named in an order for which the commission has been required to make a payment from the recovery fund;
(3) The claimant notifies the commission in writing within the same time period specified in section 467-18, HRS, that it has commenced an action for a judgment which may result in collection from the real estate recovery fund;
(4) The claimant files a verified claim with the commission stating with particularity the reasons, grounds, and evidence in support of claimant's request for settlement directly with the commission;
(5) The claimant gives reasonable notice to the licensee at the licensee's last known address by registered or certified mail, restricted delivery to addressee only, return receipt requested that claimant intends to settle the claim directly with the commission together with a copy of the verified claim. Where it is impossible to give licensee notice by mail, claimant shall give notice to licensee by publication once in a newspaper of general circulation in the State, that the claimant intends to settle the claim directly with the commission, a summary of the reasons, grounds, and evidence supporting claimant's relief from the recovery fund. Any notice given shall also contain a statement to the effect that any payment from the recovery fund shall result in an automatic termination of the licensee's license;
(6) The licensee has had an opportunity to respond within a reasonable time, in writing, to claimant's verified claim;
(7) That claimant is not a spouse of the licensee, or the personal representative of such spouse;
(8) The claimant has made all reasonable searches and inquiries to ascertain whether the licensee is possessed of real or personal property or other assets, which may be used to satisfy the claim and that by such search the claimant has discovered no such assets;
(9) The commission is satisfied, that there is sufficient evidence to support a settlement of the claim; and
(10) The settlement is in the best interest of the real estate recovery fund.
