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.

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Excellent info Jeff!

x

About time this was done, I'm Licensed in both Nevada and Calif. hope Nevada does it now too

Finally! Exciting! I hope we get something similar in New Mexico soon.

Natalie Arndt BS, MA, CDPE, CDRS,

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