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.
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.
Jun. 19, 2015 (revised) Legal Article: This legal article is intended as an introduction to this dynamic area of real estate brokerage practice. Individuals who are contemplating an exchange should first consult appropriate professionals who are experienced in the tax and financial aspects of Section 1031 exchanges.
The Internal Revenue Code Section 1031: Tax Deferred Exchanges Q&A has been updated as follows:
Four questions 23 through 26 have been added discussing reverse exchanges: what they are, what are their advantages and disadvantages and their legal basis.
Jun. 17, 2015 (revised) Legal Article: Beginning August 1, 2015*, the Good Faith Estimate (GFE), the HUD-1 and the Truth-in- Lending Act (TILA) disclosures will be replaced in most transactions by two new forms – the Loan Estimate and the Closing Disclosure.
(*The CFPB has proposed extending the effective date to October 1, 2015)
June 5, 2015 What's New: The Consumer Financial Protection Bureau (CFPB) filed a complaint in federal district court against RPM Mortgage, Inc. and its CEO, Erwin Robert Hirt, for illegally paying bonuses and higher commissions to loan originators to incentivize them to steer consumers into costlier mortgages.
May 29, 2015 (revised) Legal Article: Under contract law, a contingency provides a party to the contract the ability to condition performance on the occurrence or non-occurrence of another event. This legal article focuses on some common contingencies arising in real estate sales transactions, in particular the C.A.R. Form RPA-CA (residential purchase contract), and the method for removing contingencies under the C.A.R. contracts.
May 22, 2015 (revised) Legal Article: California's Uniform Electronic Transactions Act ("UETA") (Civil Code Sections 1633.1 et seq.) and the federal Electronic Signatures in Global and National Commerce Act ("E-Sign") (15 USC Sections 7001 et seq.) authorize the use of electronic signatures and records in real estate transactions. Until now, the primary stumbling block to electronic transactions has been security and authentication issues. Those issues have found a solution in part through companies offering security and authentication features for electronic signatures and records delivered as part of real estate transactions. zipForm® 6 and relay® now contain an electronic signature feature, allowing C.A.R. members the opportunity to incorporate electronic signatures in their real estate transactions.»
May 11, 2015 What's New: A federal court has temporarily halted Los Angeles-based Wealth Educators, Inc. and its president from offering mortgage relief services at the Federal Trade Commission’s request. The agency charged the defendants with failing to provide the help they promised homeowners, while charging a hefty up-front fee. The company also told consumers to stop making their monthly mortgage payments, leading some facing the prospect of foreclosure.
May 11, 2015 What's New: The Consumer Financial Protection Bureau (CFPB) filed a lawsuit in federal district court against Nationwide Biweekly Administration, Inc., Loan Payment Administration LLC, and the companies’ owner, Daniel Lipsky, alleging that Nationwide misrepresents the interest savings consumers will achieve through a biweekly mortgage payment program and misleads consumers about the cost of the program.
May 8, 2015 What's New: Poppi Metaxas, former president and chief executive officer of TARP applicant Gateway Bank, FSB (Gateway) pleaded guilty on April 30, 2015, to conspiracy to commit bank fraud for her role in defrauding the bank of more than $1.8 million in the aftermath of the financial crisis.
May 8, 2015 What's New: The Consumer Financial Protection Bureau (CFPB) took action against RMK Financial Corporation for deceptive mortgage advertising practices, including ads that led consumers to believe that the company was affiliated with the U.S. government.
May 8, 2015 What's New: The Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) took action against Green Tree Servicing, LLC, for mistreating mortgage borrowers who were trying to save their homes from foreclosure.
May 8, 2015 What's New: The Consumer Financial Protection Bureau (CFPB) and the Maryland Attorney General took action against the participants in a mortgage-kickback scheme. In a complaint filed in federal court, the CFPB and Maryland allege that the Maryland-based title company’s executives and the named loan officers traded cash and marketing services in exchange for mortgage referrals.
May 1, 2015 (revised) Legal Article: Beginning February 2014, a new energy use disclosure must be provided for the sale, lease or financing of certain types of commercial buildings. The law requires that this disclosure must be delivered prior to entering into contract. This new Q&A breaks down the complexity of this law and provides clear and straightforward guidance on how to comply with it.
Legal Q&As -
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