California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 26 - Recovery Account › Section 3102 - Substantially Complete Application

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
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 propounding 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 claimaint 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.
1. New section
				  filed 12-15-86; designated effective 1-1-87 pursuant to Government Code Section
				  11346.2(d)
				  (Register 86, No. 51).
2. Amendment of subsection (a) filed 3-18-88;
				  operative 4-17-88 (Register 88, No. 14).
3. Amendment of subsections
				  (h), (j) and (n) filed 1-21-2022; operative 4-1-2022 (Register 2022, No.
				  3).
Note: Authority cited: Sections
					 10080
					 and
					 10471.2,
					 Business and Professions Code. Reference: Section
					 10471.2,
					 Business and Professions Code.