When is payment due to the homeowner who has won a Recovery Fund judgment against a contractor?

The correct answer is that payment is due to the homeowner when all judgment appeals have been exhausted. This means that once a court has issued a judgment in favor of the homeowner, the contractor has the right to appeal that decision. Payments from a Recovery Fund to the homeowner typically occur only after these appeals have gone through the judicial system, allowing for finality in the judgment. This process ensures fairness to both parties, as the contractor must be allowed the opportunity to contest the judgment before any payment is mandated.

This legal structure emphasizes the principle of due process, where a party must have the chance to fully explore legal remedies before a financial obligation is enforced. The other scenarios, such as suing the builder or exhausting arbitration avenues, do not provide a conclusive endpoint for the payment obligation, and prematurely demanding payment without resolving all legal avenues would undermine the contractor’s rights. Thus, waiting until all appeals are resolved aligns with established legal practices in the context of Recovery Fund judgments.