VIRGINIA CONTRACTOR TRANSACTION RECOVERY FUND
Links to topics on this page
Who Is Eligible To File A Claim?
Limitations
Revocation of License
Source of Funding
How To File A Claim
Forms, Brochures and Frequently Asked Questions
The Virginia Contractor Transaction Recovery Act became effective July 1, 1980. The Act provides relief to consumers who have incurred losses through the improper and dishonest conduct of a licensed contractor. The Recovery Fund is supported entirely by assessments paid by licensed contractors, not by any tax revenues. Filing a claim does not guarantee payment.
Who Is Eligible To File A Claim?
A person who has been awarded a judgment in a court of competent jurisdiction in the Commonwealth of Virginia against a licensed contractor may be eligible to file a claim.
The judgment must be obtained against an individual or entity who is licensed by the Commonwealth of Virginia. The judgment must be based upon the improper or dishonest conduct of the contractor. A claimant cannot be denied recovery from the Fund due to the fact that the judgment does not contain a specific finding of "improper or dishonest conduct". Any language in the judgment that supports the conclusion that the court found the conduct of the licensed contractor involved improper or dishonest conduct may be used by the Board to determine eligibility for recovery from the Fund.
"Improper or dishonest conduct" includes only the wrongful taking or conversion of money, property, or other things of value which involves fraud, material misrepresentation or conduct constituting gross negligence, continued incompetence, or intentional violation of the Uniform Statewide Building Code (§36-97 et seq.). The term "improper or dishonest conduct" does not include mere breach of contract.
If the licensed contractor has filed bankruptcy, the claimant shall file a claim with the proper bankruptcy court. If no distribution is made, the claimant may then file a claim with the Board. The Board shall determine whether the conduct that gave rise was improper and dishonest and what amount, if any, such claimant is entitled to recover from the Fund.
The contractor must have been licensed during the period in which the improper and dishonest conduct occurred. The contract between the consumer and the contractor must involve contracting for the consumer's residence located in Virginia.
The consumer filing the claim cannot be any of the following:
1. an employee, vendor, spouse or child of the contractor;
2. another licensed contractor;
3. a financial or lending institution; or
4. anyone whose business involves the construction or development of
real property.
Limitations
A single claim is limited to $20,000.00.
Multiple claims involving one contractor are limited to $40,000.00 per biennium. If multiple claims involving one contractor exceed $40,000.00, the claim amounts will be prorated. If there is reason to believe there will be multiple claims involving one contractor, payment of claims will be delayed for a period not to exceed one year.
The Fund will not pay interest, punitive damages, exemplary damages, or any amounts that do not constitute actual monetary loss to the claimant. However, the award may include attorney's fees and court costs.
Revocation of License
When a payment involving a contractor is made from the Fund, in most cases, the contractor's license is automatically revoked. Any regulant whose license is revoked shall not be eligible to apply for a license as a contractor until the regulant has repaid in full the amount paid from the Fund on his account, plus interest. The Board for Contractors may also take further disciplinary actions against the contractor.
Source of Funding
The Contractor Transaction Recovery Fund is NOT supported by tax revenues. All administrative costs and claims are funded with assessments paid by contractors licensed by the Commonwealth of Virginia.
How To File A Claim
When the consumer takes any legal action against a contractor, the Clerk of Court should be notified that the Board for Contractors must also receive a copy of the notice served on the contractor. An affidavit stating the acts of improper or dishonest conduct of the contractor should be included with the notice given to the Board.
After the consumer has obtained a judgment from a court, an attempt must be made to collect from the contractor by conducting debtor interrogatories. This action determines whether the contractor has any assets which can be sold or applied in satisfaction of the judgment. If any assets are revealed by the interrogatories, the consumer must provide evidence that all legally available actions have been taken to sell the assets and disclose amounts realized from such actions.
A Contractor Transaction Recovery Act claim form must be filed with the
Department of Professional and Occupational Regulation within twelve
(12) months after the judgment became final. Please attach a certified
copy of the judgment order, copies of all pleadings filed by either
party (if any), a copy of the contract, a notarized affidavit stating
the acts of improper and dishonest conduct by the contractor which form
the basis of this claim, and evidence of the conducting of debtor
interrogatories, which should include the front and back of the summons
for interrogatories.
To obtain more information or to request a claim form, contact us at:
Department of Professional and Occupational Regulation
Contractor Transaction Recovery Fund
9960 Mayland Drive
Suite 400
Richmond, VA 23233-1463
(8:30 A.M. – 4:30 P.M., Monday – Friday)
Phone: (804) 367-1559
E-mail: recoveryfund@dpor.virginia.gov
Forms and Brochures and Frequently Asked Questions
Information Brochure (PDF Format)
Recovery Fund Claim Form (PDF Format)
