Interesting news from the California Association or Realtors regarding licensing and short sale processing
http://www.car.org/legal/foreclosure-short-sale-folder/short-sale-n...
Below is the part of the article, use link above to read full article....
Make sure a SSN is properly licensed. A SSN must be a licensed real estate broker or a licensed
salesperson who is working under a broker. If the SSN works from outside the state of California,
DRE enforcement officers have advised that the out of state SSN must still hold a California license
if they wish to assist a California client.
Home Page > Legal > Foreclosure & Short Sale Folder > Short Sale Negotiators
Short Sale Negotiators Page 1 of 6
http://www.car.org/legal/foreclosure-short-sale-folder/short-sale-n...... 1/26/2012
An attorney is exempt from the real estate license requirement if certain conditions are met, such as
the attorney is not using or attempting to use the exemption for the purpose of evading the licensing
laws (Cal. Bus. & Prof. Code § 10133(a)(3)), and the attorney is not actively and principally engaged
in the business of negotiating mortgage loans (Cal. Bus. & Prof. Code § 10133.1(a)(5)).
An indication that a SSN is not properly licensed is when the short sale negotiation entity is an LLC.
In California, an LLC cannot get a real estate broker’s license and therefore, should not be doing
short sale negotiation. It is illegal to pay an unlicensed individual or entity for doing licensed work.
Even if it is technically your client who pays the SSN, as the person who effectively arranged the
transaction, you may expose yourself to both criminal and civil liability, and you could have your
license revoked or suspended by the DRE.
Replies to This Discussion
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Permalink Reply by Bryant Tutas on -
Excellent info Jeff!
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Permalink Reply by Harry Clay on -
This important CAR info / link was originally brought to our attention & posted by broker Thom Colby.
It illustrates how the laws regarding short sale negotiators vary throughout the country.
There are numerous activities often discussed on this site, that one can't legally get away with in California.
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Permalink Reply by Bryant Tutas on
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x
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Permalink Reply by John Treadwell on -
About time this was done, I'm Licensed in both Nevada and Calif. hope Nevada does it now too
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Permalink Reply by Natalie Arndt on -
Finally! Exciting! I hope we get something similar in New Mexico soon.
Natalie Arndt BS, MA, CDPE, CDRS,
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