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Unformatted text preview: om) 11-11 REAL ESTATE FINANCE PURCHASE MONEY CREDIT EXTENDED BY SELLERS
For purchase money credit applies to seller carryback credit situations involving one– to four–family dwellings. Arranger of Credit – In California law, an “arranger of credit” is: A person, other than a party to the transaction, who is involved in developing or negotiating credit terms, or any transaction or transfer of real property which is facilitated by that extension of credit, excluding attorneys, or A party to the transaction who is a real estate licensee or an attorney. APPLICATION
Applies to seller carryback situations involving 1– to 4–family dwellings. Exempt Transactions – Disclosures under this law are not required: When the purchaser is entitled to receive a federal Truth in Lending disclosure statement, a RESPA disclosure statement, or a Mortgage Loan Broker's Statement, under Article 7. When the vendor is entitled to receive a disclosure statement under Article 5, California Real Estate Law, or certain disclosures required by Corporations Code Section 25110. DISCLOSURE REQUIREMENTS
When credit is extended by the seller and there is an “arranger of credit,” disclosure responsibilities are as follows: A written disclosure shall be given to the purchaser by the arranger of credit and vendor, and To the vendor by the arranger of credit and buyer. 11-12 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 11: FINANCING DISCLOSURE REQUIREMENTS
If two or more arrangers of credit are involved, the one who has obtained the offer to purchase makes the disclosure. DISCLOSURE DOCUMENT
The CAR Seller Financing Disclosure Statement form, (Form 11–2), is a common standard form for this disclosure statement. Contents – The required disclosures include both specific terms of the transaction at hand, and general disclosures about the financing process: Identification of the note (or other documents) and of the property used as security Description of terms or a copy of them Descriptio...
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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