CHAPTER 8. Real Estate Appraisers Regulation Fund [11410. - 11420.]

Cal. Business and Professions Code - BPC 8.
in effect

Cal. Business and Professions Code - BPC § 11410. Section 11410.

The Real Estate Appraisers Regulation Fund is hereby created in the State Treasury to consist of moneys raised by fees and assessments imposed pursuant to this part. Interest shall be paid at the pooled money investment rate on all money transferred to the General Fund from the Real Estate Appraisers Regulation Fund, notwithstanding the provisions of Section 16310 of the Government Code.

Cal. Business and Professions Code - BPC § 11411. Section 11411.

There shall be separate accounts in the Real Estate Appraisers Regulation Fund for purposes of administration and for purposes of recovery. These accounts shall be known respectively as the Administration Account and the Recovery Account. On and after January 1, 2026, 5 percent of the amount of any license or certificate fee collected in the 2024–25 fiscal year shall be transferred to the Recovery Account. On and after January 1, 2026, 5 percent of any license or certificate fee collected under this part shall be credited to the Recovery Account. The Recovery Account is a continuing appropriation for carrying out this chapter.

Cal. Business and Professions Code - BPC § 11411.5. Section 11411.5.

As used in this chapter, the following definitions apply: (a) “Application” means an application for payment from the Recovery Account filed with the bureau pursuant to subdivision (a) of Section 11413. (b) “Claimant” means an aggrieved person who files an application pursuant to subdivision (a) of Section 11413. (c) “Court of competent jurisdiction” means a small claims, municipal, or superior court of the State of California, or a United States district court or a United States bankruptcy court sitting to conduct its affairs within the boundaries of the State of California. (d) “Digital signature” has the same meaning as in subdivision (d) of Section 16.5 of the Government Code. The use of an electronic signature or a digital signature shall have the same force or effect as a wet signature. (e) “Electronic filer” means a claimant or claimant’s attorney who electronically uploads or transmits to the bureau an application or document in electronic form at or through the bureau’s internet website. (f) “Electronic signature” has the same meaning as defined in subdivision (h) of Section 1633.2 of the Civil Code. (g) “Electronic submission” means the upload or transmission of an application or document by electronic means at or through the bureau’s internet website. (h) “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. (i) “Party” means either the claimant, the judgment debtor, or the bureau. (j) “Person” includes corporation, partnership, company, or firm. (k) “Recovery account” means the separate account in the Real Estate Appraisers Regulation Fund established pursuant to Section 11411.

Cal. Business and Professions Code - BPC § 11412. Section 11412.

(a) On or before January 1, 2002, the director shall determine the number of complaint cases containing judicial findings of fraud that may be eligible for recovery. This information shall be used by the director to determine whether a real estate appraiser Recovery Account is necessary or whether to recommend that it should be eliminated. (b) The statute of limitations for claims against the fund arising between the effective date of this part and the creation of the fund shall be tolled until the date the fund is created. (c) On and after July 1, 2026, the bureau shall do both of the following: (1) Post information on its internet website about the Recovery Account, including eligibility requirements and the application process. (2) Upon receipt of a complaint by a licensee or a member of the public, provide a notification to the complainant that includes information regarding eligibility requirements and the application process. (d) On or before January 1, 2028, and annually thereafter, the bureau shall submit to the Legislature a report in compliance with Section 9795 of the Government Code that includes, for the prior fiscal year, the balance of the Recovery Account, the number of applicants who applied for payment from the Recovery Account, the number of applicants whose claims were approved, and the total payments made from the Recovery Account.

Cal. Business and Professions Code - BPC § 11412.2. Section 11412.2.

(a) In addition to the amount paid into the Recovery Account as set forth in Section 11411, the director may authorize a transfer from the Administration Account to the Recovery Account of any amount deemed necessary. (b) If the balance remaining in the Recovery Account contains more than four hundred thousand dollars ($400,000), the director may authorize the transfer of all or part of the surplus amount to the Administration Account. (c) The director may authorize the return to the Recovery Account of all or any amount previously transferred to the Administration Account under this section.

Cal. Business and Professions Code - BPC § 11413. Section 11413.

(a) (1) When an aggrieved person obtains either (A) a final judgment in a court of competent jurisdiction, including, but not limited to, a criminal restitution order issued pursuant to subdivision (f) of Section 1202.4 of the Penal Code or Section 3663 of Title 18 of the United States Code, or (B) an arbitration award that includes findings of fact and conclusions of law rendered in accordance with the rules established by the American Arbitration Association or another recognized arbitration body, and in accordance with Sections 1281 to 1294.2, inclusive, of the Code of Civil Procedure when applicable, and when the arbitration award has been confirmed and reduced to judgment pursuant to Section 1287.4 of the Code of Civil Procedure, against a defendant based upon the defendant’s fraud, misrepresentation, or deceit with intent to defraud, and arising directly out of any transaction in which the defendant, while licensed under this part, performed acts for which a real estate appraiser’s license was required, the aggrieved person may, upon the judgment becoming final, file an application with the bureau for payment from the Recovery Account, within the limitations specified in Section 11418, of the amount unpaid on the judgment that represents an actual and direct loss to the claimant in the transaction. (2) As used in this section, “actual and direct loss” excludes all of the following: (A) Punitive or exemplary damages. (B) Legal fees, attorney’s fees, court costs, or arbitration fees. (C) Nonpecuniary damages, such as inconvenience, aggravation, and emotional distress. (b) The application shall be delivered in person, by certified mail, or electronically in a manner prescribed by the bureau, to an office of the bureau no later than one year after the judgment has become final. (c) The application shall be made on a form prescribed by the bureau, verified by the claimant, and shall include the following: (1) The name and address of the claimant. (2) If the claimant is represented by an attorney, the name, business address, and telephone number of the attorney. (3) The identification of the judgment, the amount of the claim and an explanation of its computation. (4) A detailed narrative statement of the facts in explanation of the allegations of the complaint upon which the underlying judgment is based. (5) (A) Except as provided in subparagraph (B), a statement by the claimant, signed under penalty of perjury, that the complaint upon which the underlying judgment is based was prosecuted conscientiously and in good faith. As used in this section, “conscientiously and in good faith” means that no party potentially liable to the claimant in the underlying transaction was intentionally and without good cause omitted from the complaint, that no party named in the complaint who otherwise reasonably appeared capable of responding in damages was dismissed from the complaint intentionally and without good cause, and that the claimant employed no other procedural means contrary to the diligent prosecution of the complaint in order to seek to qualify for the Recovery Account. (B) For the purpose of an application based on a criminal restitution order, all of the following statements by the claimant: (i) The claimant has not intentionally and without good cause failed to pursue any person potentially liable to the claimant in the underlying transaction other than a defendant who is the subject of a criminal restitution order. (ii) The claimant has not intentionally and without good cause failed to pursue in a civil action for damages all persons potentially liable to the claimant in the underlying transaction who otherwise reasonably appeared capable of responding in damages other than a defendant who is the subject of a criminal restitution order. (iii) The claimant employed no other procedural means contrary to the diligent prosecution of the complaint in order to seek to qualify for the Recovery Account. (6) The name and address of the judgment debtor or, if not known, the names and addresses of persons who may know the judgment debtor’s present whereabouts. (7) The following representations and information from the claimant: (A) That the claimant is not a spouse of the judgment debtor nor a personal representative of the spouse. (B) That the claimant has complied with all of the requirements of this chapter. (C) That the judgment underlying the claim meets the requirements of subdivision (a). (D) A description of searches and inquiries conducted by or on behalf of the claimant with respect to the judgment debtor’s assets liable to be sold or applied to satisfaction of the judgment, an itemized valuation of the assets discovered, and the results of actions by the claimant to have the assets applied to satisfaction of the judgment. (E) That the claimant has diligently pursued collection efforts against all judgment debtors and all other persons liable to the claimant in the transaction that is the basis for the underlying judgment. (F) That the underlying judgment and debt have not been discharged in bankruptcy, or, in the case of a bankruptcy proceeding that is open at or after the time of the filing of the application, that the judgment and debt have been declared to be nondischargeable. (G) That the application was submitted to the bureau, as prescribed in subdivision (b), no later than one year after the underlying judgment became final. (d) The application form shall include detailed instructions with respect to documentary evidence, pleadings, court rulings, the products of discovery in the underlying litigation, and a notice to the applicant of their obligation to protect the underlying judgment from discharge in bankruptcy, to be appended to the application. (e) An application for payment from the Recovery Account that is based on a criminal restitution order shall comply with all of the requirements of this chapter. For the purpose of an application based on a criminal restitution order, the following terms have the following meanings: (1) “Complaint” means the facts of the underlying transaction upon which the criminal restitution order is based. (2) “Judgment” means the criminal restitution order. (3) “Judgment debtor” means any defendant who is the subject of the criminal restitution order.

Cal. Business and Professions Code - BPC § 11413.1. Section 11413.1.

(a) The claimant shall serve a copy of the notice prescribed in subdivision (e) together with a copy of the application upon the judgment debtor by personal service, by certified mail, or by publication, as set forth in subdivision (b). (b) If the judgment debtor holds an unexpired and unrevoked license issued by the bureau, service of the notice and a copy of the application may be made by certified mail addressed to the judgment debtor at the latest business or residence address on file with the bureau. If the judgment debtor does not hold an unexpired and unrevoked license issued by the bureau and personal service cannot be effected through the exercise of reasonable diligence, the claimant shall serve the judgment debtor by one publication of the notice in each of two successive weeks in a newspaper of general circulation published in the county in which the judgment debtor was last known to reside. (c) If the application is served upon the judgment debtor by certified mail, service is complete five days after mailing if the place of address is within the State of California, 10 days after mailing if the place of address is outside the State of California but within the United States, and 20 days after mailing if the place of address is outside the United States. Personal service is complete on the date of service. Service by publication is complete upon completion of the second week of publication. (d) If a judgment debtor wishes to contest payment of an application by the bureau, the debtor shall mail or deliver a written response to the application addressed to the bureau at its headquarters office within 30 days after service of the notice and application, and shall mail or deliver a copy of the response to the claimant. If a judgment debtor fails to mail or deliver a timely response, the debtor shall have waived their right to present objections to payment. (e) The notice served upon the judgment debtor shall include the following statement: “NOTICE: Based upon a judgment entered against you in favor of (name of claimant) , application for payment from the Recovery Account of the Real Estate Appraisers Regulatory Fund is being made to the Bureau of Real Estate Appraisers. “If payment is made from the Recovery Account on an application where the final judgment was established by clear and convincing evidence or the Bureau of Real Estate Appraisers determined that the claimant provided clear and convincing evidence of the judgment debtor’s fraud, misrepresentation, or deceit with intent to defraud, all licenses and license rights that you have under the Real Estate Appraisers’ Licensing and Certification Law will be automatically suspended on the date of payment. Your license cannot be reinstated until the Recovery Account has been reimbursed for the amount paid plus interest at the prevailing rate. “If you wish to contest payment by the Bureau of Real Estate Appraisers, you must file a written response to the application addressed to the Bureau of Real Estate Appraisers at ___________ within 30 days after mailing, delivery, or publication of this notice and mail or deliver a copy of that response to the claimant. If you fail to do so, you will have waived your right to present your objections to payment.” (f) If a judgment debtor fails to mail or deliver a written response to the application with the bureau within 30 days after personal service, mailing, or final publication of the notice, the judgment debtor shall not thereafter be entitled to notice of any action proposed to be taken by the bureau with respect to the application.

Cal. Business and Professions Code - BPC § 11413.2. Section 11413.2.

(a) For all applications and documents submitted electronically to the bureau, the claimant or claimant’s attorney shall submit the application and supporting documentation as a single, noneditable but printable portable document format (PDF). The total file size shall not exceed 100 megabytes. (b) Any electronically submitted application received by the bureau shall be considered filed on the date received by the bureau.

Cal. Business and Professions Code - BPC § 11413.3. Section 11413.3.

(a) The response by a judgment debtor shall 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 their attorney. (b) If the judgment debtor is not represented by an attorney in objecting to payment of the application, the response shall contain the judgment debtor’s name, the address at which they wish to receive correspondence and notices relating to the application, and a telephone number where they can be reached during regular business hours. If the judgment debtor is represented by an attorney in objecting to the application, the response shall contain the name, business address, and telephone number of the attorney.

Cal. Business and Professions Code - BPC § 11413.4. Section 11413.4.

(a) A judgment debtor who has filed a response objecting to payment to a claimant from the Recovery Account may submit a written argument setting forth in detail the factual and legal bases, including all supporting documentation, upon which they believe the application should be denied. The 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 subdivision (c) of Section 11413.1, and shall be served upon the bureau and the claimant as specified in Section 11417.4. (b) The claimant shall have 30 days after the mailing of argument by the judgment debtor in which to submit their own argument in favor of payment. The argument by the claimant shall be served upon the bureau and the judgment debtor as specified in Section 11417.4.

Cal. Business and Professions Code - BPC § 11414. Section 11414.

(a) If the bureau determines that the application as submitted by the claimant fails to comply substantially with the requirements of Section 11413 or with the requirements of a regulation adopted by the chief under authority of Section 11313, the bureau shall, within 45 days after receipt of the application, mail an itemized list of deficiencies to the claimant. (b) The time within which the bureau is required to act under Section 11415 shall be measured from the date of receipt by the bureau of an application that is substantially complete. In the event of an irreconcilable dispute between the claimant and the bureau on the question of whether the application is substantially complete, the claimant may immediately file the claim with the court pursuant to Section 11417.3.

Cal. Business and Professions Code - BPC § 11414.1. Section 11414.1.

(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 subdivision (c) of Section 11413, and shall contain all of the information specified in Section 11414.2, 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 application is deemed verified by claimant if electronically submitted to the bureau, provided that one of the following conditions is satisfied: (1) If the claimant is the electronic filer, the claimant signs the application using an electronic signature and declares under penalty of perjury under the laws of the State of California that the information submitted is true and correct. (2) If the claimant’s attorney is the electronic filer, the claimant signs the application using a digital signature. (3) If the claimant affixes a wet signature on the printed application before electronically submitting the application to the bureau, the claimant or claimant’s attorney certifies that the original signed application is available for inspection and will be mailed to the bureau, upon the bureau’s written request. (c) The claimant may submit with the application less than all of the information specified in Section 11414.2 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 11412.1 to 11419.3, inclusive, for payment from the Recovery Account. An application shall not be deemed substantially complete within the meaning of Section 11414.2 unless either of the following applies: (1) The bureau determines that the information submitted is sufficient for the bureau to make a determination whether the application qualifies for payment from the Recovery Account and notifies the claimant. (2) The application and supporting information meet all of the requirements specified in Section 11414.2. (d) 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 the documents purport to be copies of documents filed in court, that they are true and correct copies of the originals filed with the court. (e) 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 the filing of the application, the application shall contain the name, business address, and telephone number of the attorney.

Cal. Business and Professions Code - BPC § 11414.2. Section 11414.2.

Except as provided in Section 11414.1, an application for payment from the Recovery Account is “substantially complete” within the meaning of subdivision (b) of Section 11414 if it contains and complies with all of the following: (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 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 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 pretrial or posttrial 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, but not limited to, 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. (i) A description by the claimant of the basis for each element of damages. (j) If any codefendant was dismissed from the underlying lawsuit, a statement of the reason for dismissal as to each codefendant. (k) 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. (l) 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. (m) If the claimant claimed any loss related to the transaction as a deduction on the claimant’s tax return, a description of the amount of the tax benefit derived therefrom. (n) 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 for bankruptcy and the claimant failed to take any of the foregoing actions, a statement as to why the claimant failed to take those actions. (o) Abstracts of judgment bearing evidence of having been recorded in the county or counties in which the judgment debtor may possibly have assets. (p) If any of the items specified in subdivisions (a) to (o), inclusive, 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. (q) All documents or copies of documents submitted to meet the requirements of this section shall be clear and legible. (r) Certification by the claimant that all documents submitted are true and correct copies of the originals and, if the documents purport to be copies of documents filed in court, that they are true and correct copies of the originals filed with the court.

Cal. Business and Professions Code - BPC § 11415. Section 11415.

(a) The bureau shall render a final written decision on the application within 180 days after a completed application has been received unless the claimant agrees in writing to extend the time within which the bureau may render a decision. (b) The bureau may deny or grant the application or may enter into a compromise with the claimant to pay less in settlement than the full amount of the claim. If the claimant refuses to accept a settlement of the claim offered by the bureau, the written decision of the bureau shall be to deny the claim or it shall be deemed denied if a written decision is not rendered within the time specified in subdivision (a). Evidence of settlement offers and discussions between the bureau and the claimant shall not be competent evidence in judicial proceedings undertaken by the claimant pursuant to Section 11417.3.

Cal. Business and Professions Code - BPC § 11415.1. Section 11415.1.

(a) If the bureau mailed one or more itemized lists of deficiencies to a claimant as provided by subdivision (a) of Section 11414, and if, after an unreasonable length of time the bureau has received no response to the latest 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 chief, taking into account the degree of difficulty in meeting the deficiencies specified. 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 the claimant has not received a response after the passing of the deadline specified by the bureau pursuant to subdivision (a), the bureau may deny the application.

Cal. Business and Professions Code - BPC § 11416. Section 11416.

(a) In its consideration and investigation of an application, the bureau shall have recourse to all appropriate means of investigation and discovery available to it under Article 2 (commencing with Section 11180) of Chapter 2 of Part 1 of Division 3 of Title 2 of the Government Code. (b) The bureau may grant payment on an application if the final judgment satisfies the requirements of Section 11413 and was established by proof by preponderance of the evidence, or a higher standard of proof.

Cal. Business and Professions Code - BPC § 11417. Section 11417.

(a) The bureau shall give notice of a decision rendered with respect to the application to the claimant and to a judgment debtor pursuant to Section 11413.1. (b) If the application is denied, the notice to the claimant and judgment debtor shall include the following: “Claimant’s application has been denied. If the claimant wishes to pursue the application in court, the claimant must file the application as follows in a superior court of this state not later than six months after receipt of this notice, pursuant to Section 11417.3 of the Business and Professions Code. If the underlying judgment is a California state court judgment, the application shall be filed in the court in which the underlying judgment was entered. If the underlying judgment is a federal court judgment, the application shall be filed in the superior court of any county within California that would have been a proper venue if the underlying lawsuit had been filed in a California state court, or in the Superior Court of the County of Sacramento.” (c) If the decision of the bureau is to make a payment to the claimant out of the Recovery Account, the following notice shall be given to the judgment debtor along with a copy of the decision of the bureau: “The decision of the Bureau of Real Estate Appraisers on the application of ____ is to pay $____ from the Recovery Account. A copy of that decision is enclosed.” (d) If the decision of the bureau is to make a payment to the claimant out of the Recovery Account and to suspend the license of the judgment debtor, the following notice shall be given to the judgment debtor along with a copy of the decision of the bureau: “The decision of the Bureau of Real Estate Appraisers on the application of ____ is to pay $____ from the Recovery Account. A copy of that decision is enclosed.” “Pursuant to Section 11418.2 of the Business and Professions Code, all of your licenses and license rights under the Real Estate Appraisers’ Licensing and Certification Law will be suspended effective on the date of the payment, and you will not be eligible for reinstatement of any license issued under authority of the Real Estate Appraisers’ Licensing and Certification Law until you have reimbursed the Recovery Account for this payment plus interest at the prevailing legal rate.” “If you desire a judicial review of the suspension of your licenses and license rights, you may petition the superior court for a writ of mandamus. If the underlying judgment is a California state court judgment, the petition shall be filed in the court in which the judgment was entered. If the underlying judgment is a federal court judgment, the petition shall be filed in the superior court of any county within California that would have been a proper venue if the underlying lawsuit had been filed in a California state court, or in the Superior Court of the County of Sacramento. To be timely, the petition must be filed with the court within 30 days of receipt of this notice.”

Cal. Business and Professions Code - BPC § 11417.1. Section 11417.1.

(a) If the decision of the bureau is to make a payment out of the Recovery Account and the judgment debtor files a writ of mandamus as provided in subdivision (c) of Section 11417, no payment shall be made of the pending application unless and until the writ of mandamus has been denied and the denial has become final. (b) If the 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.

Cal. Business and Professions Code - BPC § 11417.2. Section 11417.2.

If, at any time prior to the rendering of a decision on an application, the bureau makes a preliminary determination that the aggregate valid applications of all aggrieved persons against that licensee are likely to exceed the limits of liability in Section 11418, the bureau shall, in lieu of further administrative proceedings, initiate a proration proceeding pursuant to Section 11418.1 in a superior court of any county in this state that would be a proper court for the filing of a denied application or writ of mandamus pursuant to Section 11417.

Cal. Business and Professions Code - BPC § 11417.3. Section 11417.3.

(a) A claimant against whom the bureau has rendered a decision denying an application pursuant to Section 11413 may, within six months after the mailing of the notice of the denial, file a verified application in superior court for an Order Directing Payment Out of the Recovery Account based upon the grounds set forth in the application to the bureau. If the underlying judgment is a California state court judgment, the application shall be filed in the court in which the underlying judgment was entered. If the underlying judgment is a federal court judgment, the application shall be filed in the superior court of any county within California that would have been a proper venue if the underlying lawsuit had been filed in a California state court, or in the Superior Court of the County of Sacramento. (b) A copy of the verified application shall be served upon the bureau and upon the judgment debtor. A certificate or affidavit of service shall be filed by the claimant with the court. Service on the bureau may be made by certified mail addressed to the headquarters office of the bureau. Service upon a judgment debtor may be made in accordance with Section 11413.1. The notice served upon the judgment debtor shall read as follows: “NOTICE: An application has been filed with the court for a payment from the Recovery Account that was previously denied by the Bureau of Real Estate Appraisers. “If the Bureau of Real Estate Appraisers makes a payment from the Recovery Account pursuant to a court order, all of your licenses and license rights under the Real Estate Appraisers’ Licensing and Certification Law may be suspended until the Recovery Account has been reimbursed for the amount paid plus interest at the prevailing rate. “If you wish to defend in court against this application, you must file a written response with the court within 30 days after having been served with a copy of the application. If you do not file a written response, you will have waived your right to defend against the application.”

Cal. Business and Professions Code - BPC § 11417.4. Section 11417.4.

After initial service of the application on the bureau and the judgment debtor by the claimant as provided by subdivision (b) of Sections 11413 and subdivisions (a) and (b) of 11413.1, and after service of a response by the judgment debtor as provided by subdivision (c) of Sections 11413.1 and 11413.3, 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 Appraisers 3075 Prospect Park Drive, Suite 190 Rancho Cordova, CA 95670 (b) The claimant shall be served at their 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 their 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, the party shall notify the other parties by first class mail of the new address.

Cal. Business and Professions Code - BPC § 11417.5. Section 11417.5.

(a) The bureau and the judgment debtor shall each have 30 days after being served with the application in which to file a written response. The court shall thereafter set the matter for hearing upon the petition of the claimant. The court shall grant a request of the bureau for a continuance of as much as 30 days and may, upon a showing of good cause by any party, continue the hearing as the court deems appropriate. (b) The claimant shall have the burden of proving compliance with the requirements of Section 11413 by competent evidence at an evidentiary hearing. The claimant shall be entitled to a de novo review of the merits of the application as contained in the administrative record. (c) If the judgment debtor fails to file a written response to the application, the application may be compromised or settled by the bureau at any time during the court proceedings and the court shall, upon joint petition of the claimant and the bureau, issue an order directing payment out of the Recovery Account.

Cal. Business and Professions Code - BPC § 11417.6. Section 11417.6.

(a) Whenever the court proceeds upon an application under Section 11417.3, it shall order payment out of the Recovery Account only upon a determination that the aggrieved party has a valid cause of action within the purview of Section 11413, and has complied with Section 11417.3. (b) The bureau may defend any such action on behalf of the Recovery Account and shall have recourse to all appropriate means of defense and review, including examination of witnesses and the right to relitigate any issues material and relevant in the proceeding against the Recovery Account that were determined in the underlying action on which the judgment in favor of the applicant was based. If the judgment in favor of the applicant was by default, stipulation, consent, or pursuant to Section 594 of the Code of Civil Procedure, or whenever the action against the licensee was defended by a trustee in bankruptcy, the applicant shall have the burden of proving that the cause of action against the licensee was for fraud, misrepresentation, or deceit with intent to defraud. Otherwise, the judgment shall create a rebuttable presumption of the fraud, misrepresentation, or deceit with intent to defraud. The presumption shall affect the burden of producing evidence. (c) The bureau may move the court at any time to dismiss the application when it appears there are no triable issues and the petition is without merit. The motion may be supported by affidavit of any person or persons having knowledge of the facts, and may be made on the basis that the petition, and the judgment referred to therein, does not form the basis for a meritorious recovery claim within the purview of Section 11413; provided, however, the bureau shall give written notice at least 10 days before the motion. (d) The bureau may, subject to court approval, compromise a claim based upon the application of an aggrieved party. The bureau shall not be bound by any compromise or stipulation of the judgment debtor.

Cal. Business and Professions Code - BPC § 11417.7. Section 11417.7.

The judgment debtor may defend an action against the Recovery Account on their own behalf and shall have recourse to all appropriate means of defense and review, including examination of witnesses. All matters relating to the issues of fraud, misrepresentation, or deceit with intent to defraud finally adjudicated in the underlying action are conclusive as to the judgment debtor and the applicant in the proceeding against the Recovery Account, if the final judgment was established by proof by clear and convincing evidence or the bureau determined that the applicant provided clear and convincing evidence of the judgment debtor’s fraud, misrepresentation, or deceit with intent to defraud.

Cal. Business and Professions Code - BPC § 11418. Section 11418.

Notwithstanding any other provision of this chapter and regardless of the number of persons aggrieved or real estate appraisals involved in a transaction or the number of judgments against a licensee, the liability of the Recovery Account shall not exceed the following amounts: (a) For applications for payment from the Recovery Account filed on or after January 1, 2026, fifty thousand dollars ($50,000) for any one transaction and two hundred fifty thousand dollars ($250,000) for any one licensee. (b) When multiple licensed real estate appraisers are involved in a transaction and the individual conduct of two or more licensees results in a judgment meeting the requirements of subdivision (a) of Section 11413, the claimant may seek recovery from the Recovery Account based on the judgment against any licensed real estate appraiser, subject to the limitations of this section and subparagraph (E) of paragraph (7) of subdivision (c) of Section 11413.

Cal. Business and Professions Code - BPC § 11418.1. Section 11418.1.

If the amount of liability of the Recovery Account as provided for in Section 11418 is insufficient to pay in full the valid claims of all aggrieved persons by whom claims have been filed against any one licensee, the amount shall be distributed among them in the ratio that their respective claims bear to the aggregate of the valid claims, or in any other manner as the court deems equitable. Distribution of any moneys shall be among the persons entitled to share therein, without regard to the order of priority in which their respective judgments may have been obtained or their claims have been filed. Upon petition of the bureau, the court may require all claimants and prospective claimants against one licensee to be joined in one action, to the end that the respective rights of all claimants to the Recovery Account may be equitably adjudicated and settled.

Cal. Business and Professions Code - BPC § 11418.2. Section 11418.2.

If the bureau pays from the Recovery Account any amount in settlement of a claim or toward satisfaction of a judgment against a licensed appraiser, the license of the appraiser shall be automatically suspended upon the date of payment from the Recovery Account if the final judgment was established by proof by clear and convincing evidence or the bureau determined that the claimant provided clear and convincing evidence of the fraud, misrepresentation, or deceit with intent to defraud. No appraiser licensee shall be granted reinstatement until they have repaid in full, plus interest at the prevailing legal rate applicable to a judgment rendered in any court of this state, the amount paid from the Recovery Account on their account. A discharge in bankruptcy shall not relieve a person from the penalties and disabilities provided in this chapter.

Cal. Business and Professions Code - BPC § 11418.3. Section 11418.3.

If, at any time, the money deposited in the Recovery Account is insufficient to satisfy any authorized claim or portion thereof, the bureau shall, when sufficient money has been deposited in the Recovery Account, satisfy the unpaid claims or portions thereof, in the order that the claims were approved, plus accumulated interest at the rate of 4 percent a year.

Cal. Business and Professions Code - BPC § 11419. Section 11419.

A person or the agent of any person shall not file with the bureau any notice, statement, or other document required under this chapter that is false or untrue or contains any willful, material misstatement of fact. A violation of this section is punishable by imprisonment in the county jail for a period of not more than one year or a fine of not more than one thousand dollars ($1,000), or both.

Cal. Business and Professions Code - BPC § 11419.1. Section 11419.1.

When the bureau has paid from the Recovery Account any sum to the judgment creditor, the bureau shall be subrogated to all of the rights of the judgment creditor and the judgment creditor shall assign all of their rights, titles, and interests in the judgment to the bureau, and any amount and interest recovered by the bureau on the judgment shall be deposited to the Recovery Account.

Cal. Business and Professions Code - BPC § 11419.3. Section 11419.3.

Nothing in this chapter limits the authority of the bureau to take disciplinary action against a licensee for a violation of this part or of the rules and regulations adopted by the chief. The repayment in full of all obligations to the Recovery Account by a licensee does not nullify or modify the effect of any other disciplinary proceeding brought pursuant to this part.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026

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