Mason v. Department of Real Estate

Summary

The Real Estate Recovery Program permits persons victimized by dishonest real estate licensees to obtain compensation from a Recovery Account funded by real estate license fees. In order to recover, an aggrieved claimant must obtain a final judgment against the licensee based upon the licensee’s fraud or conversion of trust funds in connection with licensed activities, and must file an application with the Department of Real Estate no later than one year after the judgment has become final.

Here, we decide that when an aggrieved claimant obtains a final judgment against the estate of a deceased broker based on the broker’s conversion of funds, the claimant must file his application within one year of judgment, and may not delay filing pending the issuance of probate orders settling the broker’s estate.

Factual and Procedural Background

Grafton Mason is a contractor licensed by the State of California. In 1992 he contracted with Wendell Henderson, a licensed real estate broker, to perform repairs on a house. Mason deposited $69,000 in an escrow account maintained by Henderson, in lieu of a performance bond. After the repair work was completed, Mason sought the…