54.1-2108 - Protection of escrow funds, etc., held by broker. - Virginia Statutes

§ 54.1-2108. Protection of escrow funds, etc., held by broker.

No licensee or any agent of the licensee shall divert or misuse any fundsheld in escrow or otherwise held by him for another. Where escrow funds orother funds are held by the licensee or his agents and the Real Estate Boardor its agents have reason to believe that the licensee is not able toadequately protect the interests of persons involved, or his conductthreatens their interests, the Board shall file a petition with any court ofrecord having equity jurisdiction over the licensee or any of the funds heldby him stating the facts upon which it relies. The court may temporarilyenjoin further activity by the licensee and take such further action as shallbe necessary to conserve, protect and disburse the funds involved, includingthe appointment of a receiver. If a receiver is appointed his expenses and areasonable fee as determined by the court shall be paid by the licensee. Ifthe court finds him unable to make such payment, the Board shall determinewhether the expenses and fees shall be paid from the Virginia Real EstateTransaction Recovery Fund or from funds received by the Board. Suchdetermination shall be made within thirty days of the Board's receipt of thecourt-approved receiver invoices. If the court finds that the licensee waswithout fault and that he is found not to have violated any provisions ofthis chapter or of the regulations of the Board, then the receiver's expensesand fees shall be paid by the Board. Such payments shall be paid from fundsreceived by the Board.

(1973, c. 487, § 54-764.5; 1988, c. 765; 1997, c. 82; 1998, c. 29.)