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Unformatted text preview: be a licensed real estate salesperson in the employ of a broker). In some of these activities the person is not dealing in real estate, but is dealing in “real estate paper”– financing instruments (promissory notes) secured by security instruments carrying liens on real property (mortgages, trust deeds, and land contracts). DEFINITIONS
Loan Brokers – A real estate broker's license is required for a person who, in expectation of compensation, for others, solicits borrowers or lenders for or negotiates or collects payments or performs services for borrowers or lenders or note owners, in connection with loans secured Dynasty School (www.dynastySchool.com) 10-1 REAL ESTATE FINANCE
directly or collaterally by liens on real property or on a business opportunity. Agent – A broker's license is also required of a person who, for compensation, acts as an agent in the sale, purchase, or exchange of existing “real estate paper.” Principal – Article 1 also defines “broker” as including any person who engages as a principal “in the business” of buying, selling, or exchanging with the “public” real property sales contracts, or promissory notes secured by liens on real property (real estate paper). “In the Business.” – The term “in the business” is specifically defined as it applies in this law as anyone who: Acquires for resale to the public (and not as an investment) eight or more such items of real estate paper during a calendar year or Sells or exchanges eight or more items of such paper with the public during a calendar year. Any such person (in any combination of such transactions) must be a broker or deal through a broker. For complete details of article 1, please visit website www.leginfo.ca.gov (California Business and Professions Code) ARTICLE 5–TRANSACTIONS IN TRUST DEEDS AND SALES CONTRACTS
Article 5 “Transactions in Trust Deeds and Real Property Sales Contracts,” is applicable to real estate licensees engaged in the business of brokering mortgage loans or acting as agents in the sale, purchase or excha...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10