Welcome to the Legal Section of C.A.R. Online, where REALTORS® legal needs are met with the latest information and legal updates. Look below for the latest legal news during the last two months. You'll see Regulatory News, new Realegals®, and What's Hot announcements.
Sept. 19, 2016 (revised) legal Article: In November 1985, the Federal Home Loan Bank Board (FHLBB) issued a regulation prohibiting the practice of some lenders of calling a loan due upon a sale of the property and at the same time charging a prepayment penalty (the "Double-Whammy"). This regulation (FHLBB Regulation) clarifies that for loans secured by owner-occupied, one-to-four family residential property, the "Double-Whammy" prohibition also applies for a period of time after the lender fails to allow a qualified transferee to assume the loan at its current rate and terms.
Sept. 16, 2016 (revised) Legal Article: Many real estate salespersons work in teams under a brokerage. If a group of two or more real estate licensees working under the same broker wish to work together as a team and advertise themselves as a team using the name of one of the licensees, usually the head of the team, there are some very specific CalBRE requirements that must be followed. This Q&A goes over the details of the CalBRE rules for team names and team name advertising.
Sept. 15, 2016 (revised) Legal Article: A “fictitious business name” is the name a person uses to conduct business if not using his/her own legal name. A business using a fictitious business name can accept payments, advertise and otherwise communicate under that name. Using a fictitious business name also permits a single legal entity such as a corporation or an LLC to operate multiple businesses without creating a new legal entity for each business.
Sept. 1, 2016 (revised) Legal Article: This Legal Q&A which discusses retention of tax records and real estate transaction records has been updated to include a discussion of the pest control report and clearance. Apparently DRE auditors look for copies of these documents when conducting an audit. »
Legal Q&As -
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