This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ction with the prospective purchaser. EXEMPTIONS FROM COVERAGE
The provisions of Article 5 do not apply to the following. Broker Transactions in Connection With Sales – The provisions of Article 5 do not apply to negotiation of a loan by or for a real estate broker in connection with a sale or exchange of real property where the real estate broker acted as an agent. Nor do the provisions of Article 5 apply to the sale or exchange by or for the broker of a promissory note created to finance the sale or exchange where the broker acted as an agent for one of the parties. This exemption applies regardless of the relationship between the time of the sale or exchange of the promissory note and the time of the sale or exchange of the property. Broker Direct Benefit – The above exemptions do not apply to negotiations of loans and sales or exchanges of promissory notes in connection with the financing of a real property sale or exchange transaction in which the broker, as a party, had a direct or indirect financial interest. Note:Section 10230(a) covers the exemption in connection with a broker sale or exchange but paragraph (b) of Section 10230 removes transactions from the exemption where the broker had a financial interest (was a principal rather than an agent). RESTRICTIONS ON RETENTION OF LOAN FUNDS
A person engaged in any of the activities listed below, either as an agent or a principal, shall not retain funds payable under the terms of a real property secured promissory note for more than 60 days, except with a written agreement with the purchaser or lender. (Business and Professions Code 10231.1) The following are activities covered by this restriction. 10-6 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 10: REGULATION OF LOAN BROKERAGE
Soliciting(Servicing) – Soliciting borrowers or lenders for loans or negotiating loans or collecting payments or performing services for borrowers, lende...
View Full Document
- Spring '10