AB 2288

Bill Subjects

Abstract

(1) Existing law, the Real Estate Law, provides for the licensing and regulation of real estate brokers by the Real Estate Commissioner. Existing law requires a broker to provide specified notices and disclosures for transactions that involve the sale of, or offer to sell, a series of notes secured directly by interests in real property or the sale of undivided interests in a note secured directly by one or more parcels of real property equivalent to a series transaction. Existing law requires a real estate broker who arranges these transactions to clearly indicate in the broker's transaction file the provisions of the Corporate Securities Law of 1968 pertaining to qualification or exemption from qualification under which the transaction is being conducted. Existing law makes a willful violation of the Real Estate Law a crime. This bill would require a broker arranging those transactions to provide a copy of the information in the broker's transaction file to the person with whom the broker arranged the transaction. Because a willful violation of these provisions by a real estate broker would be a crime, the bill would impose a state-mandated local program. (2) Existing law makes it unlawful for a person to offer or sell any security in an issuer transaction unless the sale has been qualified, as specified, or is exempt. This bill would require an issuer of securities that engages in hard money lending, as defined, to maintain specified records and a surety bond and to establish a contractual agreement, that meets specified requirements, with the person to whom the issuer sells securities for the purpose of investing in mortgage loans. (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.