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 weeks. You'll see Regulatory News, new Realegals®, and What's Hot announcements. If you missed a news announcement this year, look under 2012 Newsunder the left-hand navigation tabs
Scam Watch The "Scam Watch" feature will provide you with a summary of all the latest short sale and foreclosure scams. Included is a "Scam Resources" feature to provide you with tools to assist your clients in avoiding scams. Check back frequently since this feature is updated on a regular basis.
Attorney Outreach Calendar C.A.R. attorneys visit real estate offices and local associations throughtout the state providing an opportunity for a live discussion of current legal issues as well as training sessions on the use of new C.A.R. standard forms.
Dec. 5, 2013 (revised) Legal Article: This legal article discusses the income tax consequences to the borrower in the event of a foreclosure on the borrower’s property, in the event the borrower transfers title to the lender as part of an agreement with the lender (deed-in-lieu of foreclosure), and if the borrower sells the property to another in a short sale in which a lender accepts less than the balance due on the loan as payment in full.
Dec. 3, 2013 (revised) Legal Article: The Consumer Financial Protection Bureau (CFPB) has issued new rules (rule) that amend Regulation Z, which implements the Truth in Lending Act (TILA). The rule requires creditors to make a reasonable, good faith determination of a consumer’s ability to repay a loan secured by a dwelling before providing a loan.
This rule becomes effective on January 10, 2014. This Q&A will review those aspects of the new rule most relevant to REALTORS®.
Nov. 27, 2013 (revised) Legal Article: Under contract law, a contingency provides a party to the contract the ability to condition performance on another event. If the event does or doesn't occur depending on how the contingency was written, the party may cancel the contract without being in breach. A new section was added discussing cancellations of contract on the basis of a contingency.
Nov. 27, 2013 (revised) Legal Article: Of the multitude of disclosures required by real estate licensees and sellers of residential property, few are as well known as the Real Estate Transfer Disclosure Statement, typically referred to as the TDS. Since 1987 sellers or other transferors of real property containing one-to-four residential units, and since 2000 sellers and other transferors of manufactured homes or mobilehomes, have been required to furnish prospective buyers or other transferees with a completed TDS (MHTDS for manufactured/mobilehomes) on a specific form prescribed by law--unless exempt.
Nov. 26, 2013 Legal Article: California law requires smoke alarms (previously referred to as “smoke detectors” in the law) to be installed in every "dwelling intended for human occupancy." The specific requirements may vary depending on the type of property, the number of units and the number of stories of the property.
Nov. 25, 2013 (revised) Legal Article: This article seeks to provide a straight forward explanation of the rules governing deficiencies in foreclosures and short sales. For a discussion of the tax implications of a deficiencies, please see C.A.R. legal article, “Taxation for Foreclosures and Short Sales.” For more information on short sales and deficiency rules, please see C.A.R. legal articles “Short Sale Deficiencies” and “Short Sale Deficiencies Fact Sheet.”
Oct. 14, 2013 (revised) What's New: This chart summarizes new laws passed by the California Legislature during the first half of the 2013-14 legislative session and the U.S. Congress that may affect, or otherwise be interesting to REALTORS®.