32-2188.05. Claimant's right to appeal denial of claim; service of notice of appeal; response; failure to file response

A. A claimant whose application is denied pursuant to section 32-2188.04 may file within six months after receiving notice of a denial of the claim a verified application in the court in which judgment was entered in the claimant's favor for an order directing payment out of the real estate recovery fund based on the grounds set forth in the claimant's application to the commissioner.

B. The claimant must serve a copy of the verified application on the commissioner and on the judgment debtor and file a certificate or affidavit of service with the court. Service on the commissioner shall be made by certified mail addressed to the commissioner. Service on a judgment debtor shall be made according to section 32-2188.01 and shall include the following notice:

Notice

An application has been filed with the court for a payment from the real estate recovery fund that was previously denied by the Arizona state real estate commissioner.

If the court orders a payment from the real estate recovery fund, all of your licenses and license rights under title 32, chapter 20, Arizona Revised Statutes, will be automatically terminated.

If you wish to defend in court against this claim, you must file a written response with the court within 30 calendar days after you are served with a copy of the application. If you fail to file a written response, you waive your right to defend against the claim.

C. The commissioner and the judgment debtor each must file a written response within thirty calendar days after being served with the application under subsection B of this section. The court shall thereafter set the matter for hearing on the petition of the claimant. The court shall grant a request of the commissioner for a continuance of as much as thirty calendar days and, on a showing of good cause by any party, may continue the hearing for such time as the court considers to be appropriate.

D. At the hearing, the claimant must establish compliance with the requirements of section 32-2188.

E. If the judgment debtor fails to file a written response to the application, the commissioner may compromise or settle the claim at any time during the court proceedings and, on joint petition of the applicant and the commissioner, the court shall issue an order directing payment out of the real estate recovery fund.