reglab/statecodes huggingface dataset:
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 5 - Transactions in Trust Deeds and Real Property Sales Contracts › Section 10233.1.

10233.1. If a real estate broker in servicing a real property sales contract or a promissory note secured directly or collaterally by a lien on real property for the mortgagee, beneficiary, or owner of the note or contract, causes funds other than funds received from the obligor of the note or contract to be applied toward a payment to protect the security of the note or contract being serviced, including the payment of debt service on an obligation secured by the same real property having priority over the mortgage or deed of trust securing the promissory note that the broker is servicing, the broker shall, not later than 10 days after making any such payment, give written notice to the mortgagee, beneficiary, or owner of the date and amount of payment, the name of the person to whom payment was made, the source of funds, and the reason for making the payment.
(Added by Stats. 1982, Ch. 881, Sec. 5.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 5 - Transactions in Trust Deeds and Real Property Sales Contracts › Section 10233.2.

10233.2. For the purposes of Division 3 (commencing with Section 3101) and Division 9 (commencing with Section 9101) of the Commercial Code, when a broker, acting within the meaning of subdivision (d) or (e) of Section 10131 or Section 10131.1, has arranged a loan or sold a promissory note or any interest therein, and thereafter undertakes to service the promissory note on behalf of the lender or purchaser in accordance with Section 10233, delivery, transfer, and perfection shall be deemed complete even if the broker retains possession of the note or collateral instruments and documents, provided that the deed of trust or an assignment of the deed of trust or collateral documents in favor of the lender or purchaser is recorded in the office of the county recorder in the county in which the security property is located, and the note is made payable to the lender or is endorsed or assigned to the purchaser.
(Added by Stats. 1992, Ch. 158, Sec. 1. Effective January 1, 1993.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 5 - Transactions in Trust Deeds and Real Property Sales Contracts › Section 10234.

10234. (a) Except as provided in subdivision (d), every real estate licensee who negotiates a loan secured by a trust deed on real property shall cause the trust deed to be recorded, naming as beneficiary the lender or his or her nominee (who shall not be the licensee or the licensee’s nominee), with the county recorder of the county in which the real property is located prior to the time that any funds are disbursed, except when the lender has given written authorization for prior release.
(b) If funds are released on the lender’s written authorization as described in subdivision (a), the trust deed shall be recorded, or delivered to the lender or beneficiary with a written recommendation that it be recorded forthwith, within 10 days following release.
(c) Every real estate licensee who sells, exchanges, or negotiates the sale or exchange of a real property sales contract or a promissory note secured by a trust deed on real property shall cause a proper assignment of the real property sales contract or trust deed to be executed and shall cause the assignment to be recorded, naming as assignee the purchaser or his or her nominee (who shall not be the licensee or the licensee’s nominee), with the county recorder of the county in which the real property is located within 10 working days after the licensee or seller receives any funds from the buyer or after close of escrow; or shall deliver the real property sales contract or trust deed to the purchaser with a written recommendation that the assignment thereof be recorded forthwith.
(d) A trust deed may be recorded in the name of the real estate broker negotiating the loan if all of the following apply: (1) the lender or purchaser is any person or entity set forth in paragraph (1) of subdivision (c) of Section 10232, (2) the trust deed is recorded with the county recorder of the county in which the real property is located, and (3) the real property securing the loan as described in the trust deed is not a dwelling as defined in Section 10240.2 or unimproved real property.
(Amended by Stats. 1998, Ch. 26, Sec. 1. Effective January 1, 1999.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 5 - Transactions in Trust Deeds and Real Property Sales Contracts › Section 10234.5.

10234.5. In addition to the requirements of Section 10234, in the placing of any loan, a broker shall deliver or cause to be delivered conformed copies of any deed of trust to both the investor or lender and the borrower within a reasonable amount of time from the date of recording.
(Amended by Stats. 1998, Ch. 641, Sec. 9. Effective January 1, 1999.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 5 - Transactions in Trust Deeds and Real Property Sales Contracts › Section 10235.

10235. No real estate licensee shall knowingly advertise, print, display, publish, distribute, telecast or broadcast, or cause or permit to be advertised, printed, displayed, published, distributed, televised or broadcast, in any manner any statement or representation with regard to the rates, terms, or conditions for making, purchasing or negotiating loans or real property sales contracts which is false misleading or deceptive.
Indicating or otherwise implying any specific yield or return on any note other than the interest rate specified in said note shall be prima facie evidence that such advertisement is misleading or deceptive unless the advertisement sets forth the actual interest rate specified in the note and the discount from the outstanding principal balance at which it is being offered for sale.
(Added by Stats. 1961, Ch. 886.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 5 - Transactions in Trust Deeds and Real Property Sales Contracts › Section 10235.5.

10235.5. (a) A real estate licensee or mortgage loan originator shall not place an advertisement disseminated primarily in this state for a loan unless there is disclosed within the printed text of that advertisement, or the oral text in the case of a radio or television advertisement, the Department of Real Estate number and the unique identifier assigned to that licensee by the Nationwide Multistate Licensing System and Registry under which the loan would be made or arranged.
(b) “Mortgage loan originator,” “unique identifier,” and “Nationwide Multistate Licensing System and Registry” have the meanings set forth in Section 10166.01.
(Amended by Stats. 2022, Ch. 511, Sec. 68. (SB 1495) Effective January 1, 2023.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 5 - Transactions in Trust Deeds and Real Property Sales Contracts › Section 10236.

10236. The commissioner in his or her discretion may honor requests from interested persons for interpretive opinions with respect to any provision of this article or with respect to any regulation for implementation of provisions of this article.
No provision of this article imposing any liability applies in the case of an act done or omitted in good faith in conformity with a written interpretive opinion of the commissioner or an opinion of the Attorney General, notwithstanding that the opinion may later be amended or rescinded or be determined by judicial or other authority to be invalid for any reason.
(Amended by Stats. 1998, Ch. 485, Sec. 19. Effective January 1, 1999.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 5 - Transactions in Trust Deeds and Real Property Sales Contracts › Section 10236.1.

10236.1. No real estate licensee shall advertise to give or to offer to give to a prospective purchaser or lender any premium, gift or any other object of value as an inducement for making a loan, or purchasing a promissory note secured directly or collaterally by a lien on real property or a real property sales contract.
(Amended by Stats. 1998, Ch. 126, Sec. 1. Effective January 1, 1999.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 5 - Transactions in Trust Deeds and Real Property Sales Contracts › Section 10236.2.

10236.2. (a) A real estate broker who satisfies the criteria of subdivision (a) or (b) of Section 10232 and who fails to notify the Department of Real Estate, in writing, of that fact within 30 days thereafter as required by subdivision (e) of Section 10232 shall be assessed a penalty of fifty dollars ($50) per day for each additional day written notification has not been received up to and including the 30th day after the first day of the assessment penalty. On and after the 31st day the penalty is one hundred dollars ($100) per day, not to exceed a total penalty of ten thousand dollars ($10,000), regardless of the number of days, until the department receives the written notification.
(b) The commissioner may suspend or revoke the license of any real estate broker who fails to pay a penalty imposed under this section. In addition, the commissioner may bring an action in an appropriate court of this state to collect payment of the penalty.
(c) All penalties paid or collected under this section shall be deposited into the Consumer Recovery Account of the Real Estate Fund.
(Amended by Stats. 2021, Ch. 431, Sec. 24. (SB 800) Effective January 1, 2022.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 5 - Transactions in Trust Deeds and Real Property Sales Contracts › Section 10236.4.

10236.4. (a) In compliance with Section 10235.5, every licensed real estate broker shall also display their license number on all advertisements where there is a solicitation for borrowers or potential investors. Every mortgage loan originator, as defined in Section 10166.01, shall also display the unique identifier assigned to that individual by the Nationwide Multistate Licensing System and Registry on all advertisements where there is a solicitation for borrowers.
(b) The disclosures required by Sections 10232.4 and 10240 shall include the licensee’s license number, the mortgage loan originator’s unique identifier, if applicable, and the department’s license information telephone number.
(c) “Mortgage loan originator,” “unique identifier,” and “Nationwide Multistate Licensing System and Registry” have the meanings set forth in Section 10166.01.
(Amended by Stats. 2022, Ch. 511, Sec. 69. (SB 1495) Effective January 1, 2023.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 5 - Transactions in Trust Deeds and Real Property Sales Contracts › Section 10236.5.

10236.5. A real estate broker shall notify the department when he or she is no longer servicing or arranging loans subject to the reporting requirements of Section 10232. If a broker has already made reports required by this article within the year, he or she shall continue reports for that year, but shall notify the department prior to the expiration of that year that he or she will no longer be servicing or arranging loans for which reports are required. The department’s records, including those which may be disclosed by calling the license information telephone number of the department, may then be appropriately updated.
(Added by Stats. 1997, Ch. 540, Sec. 5. Effective January 1, 1998.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 5 - Transactions in Trust Deeds and Real Property Sales Contracts › Section 10236.6.

10236.6. (a) The commissioner, in his or her discretion, may audit any broker who conducts transactions subject to the provisions of this article. The audit shall be conducted after reasonable notice to the broker and shall include an examination of both of the following:
(1) Trust accounts under the control of the broker or in any manner affiliated with the broker.
(2) Nontrust accounts under the control of the broker or in any manner affiliated with the broker to which funds from trust accounts have been deposited other than for the payment of commissions, fees, costs, or expenses due to or incurred by the broker.
(b) The authority to audit these nontrust accounts shall be limited to instances where either an annual review or audit conducted by an independent certified public accountant or a departmental audit reveals unauthorized transfers of money to those accounts.
(Added by Stats. 1998, Ch. 641, Sec. 11. Effective January 1, 1999.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 5 - Transactions in Trust Deeds and Real Property Sales Contracts › Section 10236.7.

10236.7. (a) A real estate broker, when engaging in acts for which a license is required, who arranges a transaction pursuant to Article 6 (commencing with Section 10237) or one or more provisions of the Corporate Securities Law of 1968 (Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code), shall clearly indicate in the real estate broker’s transaction file the provision or provisions of this code or the Corporate Securities Law of 1968 pertaining to qualification or exemption from qualification under which the transaction is being conducted. The real estate broker shall retain this information for the period specified in subdivision (a) of Section 10148.
(b) The real estate broker shall submit a copy of the information described in subdivision (a) to any investor from whom the real estate broker obtains funds in connection with the transaction, either directly or through an agent or affiliate, within 10 days of receipt of those funds.
(Added by Stats. 2011, Ch. 717, Sec. 10. (SB 53) Effective January 1, 2012.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 6 - Claim of Exemption From Securities Qualification › Section 10237.

10237. This article applies only to the exemption from securities qualification claimed under Section 25102.5 of the Corporations Code. This article does not apply to any other exemption from securities qualification, including subdivision (e) of Section 25102 of the Corporations Code, that may be claimed without complying with this article, or to any permit to qualify the offer and sale of securities under the Corporate Securities Law of 1968 (Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code). Any transaction that involves the sale of or offer to sell a series of notes secured directly by interests in one or more parcels of 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, shall comply with all of the provisions of this article.
(Amended (as added by Stats. 2003, Ch. 901, Sec. 2) by Stats. 2011, Ch. 717, Sec. 11. (SB 53) Effective January 1, 2012.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 6 - Claim of Exemption From Securities Qualification › Section 10239.

10239. The jurisdiction of the Commissioner of Financial Protection and Innovation under the Corporate Securities Law of 1968 shall be neither limited nor expanded by this article. Nothing in this article shall be construed to supersede or restrict the application of the Corporate Securities Law of 1968. A transaction under this article shall not be construed to be a transaction involving the issuance of securities subject to authorization by the Real Estate Commissioner under subdivision (e) of Section 25100 of the Corporations Code.
(Amended by Stats. 2022, Ch. 452, Sec. 10. (SB 1498) Effective January 1, 2023.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 6 - Claim of Exemption From Securities Qualification › Section 10239.1.

10239.1. Nothing in this article shall be construed to change the agency relationships between the parties where they exist or limit in any manner the fiduciary duty of brokers to borrowers, lenders, and purchasers of notes or interests in transactions subject to this article.
(Added by Stats. 2003, Ch. 901, Sec. 2. Effective January 1, 2004.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 6 - Claim of Exemption From Securities Qualification › Section 10239.2.

10239.2. For the purposes of this article, the following definitions shall apply:
(a) “Broker” means a person licensed as a broker under this part.
(b) “Affiliate” means a person controlled by, controlling, or under common control with, the broker.
(c) “Servicing agent” means the real estate broker or person exempted from the licensing requirements for real estate brokers under this chapter, to act as agent for the purchasers or lenders to service the notes and deeds of trust, including the handling the receipt and transmission of payments and the institution of foreclosure proceedings in the event of a default.
(d) Except as provided in paragraph (5) of subdivision (j) of Section 10238, the terms “sale” and “offer to sell,” shall have the same meaning as set forth in Section 25017 of the Corporations Code and include the acts of negotiating and arranging the transaction.
(Added by Stats. 2003, Ch. 901, Sec. 2. Effective January 1, 2004.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 6 - Claim of Exemption From Securities Qualification › Section 10239.3.

10239.3. (a) If any person other than a real estate broker makes or keeps any of the books, accounts, or other records maintained in connection with a transaction described in this article, the provisions of this article and of any regulation or order issued under this section shall apply to the person with respect to the performance of those services and with respect to those books, accounts, and other records to the same extent as if the person were the broker.
(b) If any person other than an affiliate of a broker makes or keeps any of the books, accounts, or other records maintained in connection with a transaction described in this article, or in the case of an affiliate other than a parent or subsidiary of the broker, the provisions of this article and of any regulation or order issued under this article shall apply to the person with respect to those books, accounts, and other records to the same extent as if the person were the affiliate.
(Added by Stats. 2003, Ch. 901, Sec. 2. Effective January 1, 2004.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10240.1.

10240.1. The provisions of this article, exclusive of the provisions of Section 10240, apply only to loans secured by a dwelling.
(Added by Stats. 1985, Ch. 1355, Sec. 5.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10240.2.

10240.2. As used in this article, “ dwelling” means any of the following units which are owned by a signatory to the mortgage or deed of trust secured by the dwelling unit at the time of execution of the mortgage or deed of trust:
(a) A single dwelling unit in a condominium or cooperative.
(b) Any parcel containing only residential buildings if the total number of units on the parcel is four or less.
(Added by Stats. 1985, Ch. 1355, Sec. 6.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10240.3.

10240.3. (a) The commissioner shall apply the guidance on nontraditional mortgage product risks published on November 14, 2006, by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, and the Statement on Subprime Mortgage Lending published on July 17, 2007, by the aforementioned entities and the National Association of Consumer Credit Administrators, to real estate brokers acting within the meaning of Section 10131.1 or subdivision (d) of Section 10131.
(b) The commissioner may adopt emergency and final regulations to clarify the application of this section as soon as possible.
(c) A real estate broker acting within the meaning of Section 10131.1 or subdivision (d) of Section 10131 shall adopt and adhere to policies and procedures that are reasonably intended to achieve the objectives set forth in the documents described in subdivision (a).
(Added by Stats. 2007, Ch. 301, Sec. 3. Effective January 1, 2008.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10241.1.

10241.1. (a) The purchase of credit life insurance on the life of the borrower or credit disability insurance to provide indemnity for payments becoming due on the indebtedness shall not be required as a condition of making a loan under this article.
(b) The licensee may provide through duly licensed agents, and collect from the borrower the costs of purchasing, credit life insurance on the life of a borrower and credit disability insurance to provide indemnity for payments becoming due on the indebtedness, with the borrower’s consent. The form and rate of the insurance shall be approved by the Insurance Commissioner, as provided in Section 779.9 of the Insurance Code. The insurance shall be in an amount not in excess of that reasonably necessary to discharge the obligation of the borrower, and for a term not exceeding the term of the loan. Only one premium for credit disability insurance may be collected by the licensee in connection with any loan contract irrespective of the number of borrowers, and only one borrower may be insured, except that where more than one borrower is a party to a loan contract and each borrower is a wage earner whose earnings are reasonably relied upon by the lender for the repayment of the loan, each borrower may be insured.
(c) The licensee may collect from the borrower the costs of purchasing fire and hazard insurance on the property offered as security for a loan in order to reasonably insure against loss for a reasonable term considering the circumstances of the loan, (1) if the policy or policies of insurance are made payable to the borrower or any member of his or her family, regardless of whether a customary mortgagee clause is attached, and (2) if the insurance is sold at standard rates through duly licensed agents.
(d) If premiums for any insurance provided under this section are to be paid from the proceeds of the loan, any amount so paid and any commission under subdivision (b) of Section 10242 attributable to borrowing that amount, shall not be considered in determining whether the loan is exempt from this article under Section 10245.
(Amended by Stats. 1989, Ch. 1275, Sec. 6.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10241.2.

10241.2. If the broker elects to make a loan subject to Section 10240 which consists wholly or in part of broker-controlled funds as defined in subdivision (j) of Section 10241, the broker shall advise the borrower of that fact not later than the next business day after making the election, but in any event before the close of escrow of the loan transaction.
(Added by Stats. 1982, Ch. 886, Sec. 6.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10241.3.

10241.3. In any loan transaction in which a fee is charged to a borrower for an appraisal of the real property that will serve as security for the loan, a copy of the appraisal report shall be given by or on behalf of the broker to both the borrower and the lender at or before the closing of the loan transaction.
(Added by Stats. 1984, Ch. 828, Sec. 1.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10241.4.

10241.4. (a) Prior to a borrower becoming obligated on any loan secured by a dwelling that provides for a balloon payment and is otherwise subject to Section 10240, if any agreement includes a promise, representation, or similar undertaking to extend or seek the extension of the term of the loan or refinancing of the loan, and the undertaking is not set forth in the promissory note evidencing the loan or in a rider to that note, the undertaking shall be in writing and the notice required by this section shall be provided to the borrower.
(b) The notice required by subdivision (a), shall state in at least 10-point boldface capitalized type:
“AS THIS LOAN PROVIDES FOR A BALLOON PAYMENT, SEE THE MORTGAGE LOAN DISCLOSURE STATEMENT/GOOD FAITH ESTIMATE FOR IMPORTANT INFORMATION ON BALLOON PAYMENTS. ALSO, REFER TO THE LOAN DOCUMENTS AND THIS EXTENSION AGREEMENT FOR YOUR SPECIFIC RIGHTS AND OBLIGATIONS.”
(c) The notice shall also contain, in at least 10-point boldface capitalized type, either of the following statements depending upon which statement best describes the nature of the undertaking:
(1) The lender or noteholder has agreed to an extension, refinancing, or renegotiation of the terms of this loan, and the lender’s or noteholder’s signed agreement is attached (or the notice may describe the method used to furnish that signed document). Transmission by a broker of a lender’s or noteholder’s undertaking or the broker’s representation of that undertaking, pursuant to this section, does not of itself, create or alter any agency or similar relationship between the lender or noteholder and the borrower, or the lender or noteholder and the broker.
(2) The broker, ____ (insert name of broker making or arranging the loan), has agreed to use his or her best efforts to obtain a future extension, refinancing, or renegotiation of the loan by the lender or note owner. There can be no assurance or guarantee that the lender or note owner will agree.
(Added by Stats. 1994, Ch. 86, Sec. 1. Effective January 1, 1995. Operative July 1, 1995, by Sec. 2 of Ch. 86.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10242.

10242. The maximum amount of expenses, charges and interest to be paid by a borrower with respect to any loan subject to this article shall be as follows:
(a) The maximum amount of all costs and expenses referred to in subdivision (a) of Section 10241, exclusive of actual title charges and recording fees, shall not exceed 5 percent of the principal amount of the loan or three hundred ninety dollars ($390), whichever is greater but in no event to exceed seven hundred dollars ($700), provided that in no event shall said maximum amount exceed actual costs and expenses paid, incurred or reasonably earned.
(b) The maximum amount of the charges referred to in subdivision (b) of Section 10241 shall not exceed the following amounts:
(1) In the case of a loan secured directly or collaterally, in whole or in part by a first trust deed, 5 percent of the principal amount of the loan where the term of the loan is a period of less than three years and 10 percent where the term is a period of three years or more.
(2) In the case of a loan secured directly or collaterally by a trust deed other than a first trust deed, 5 percent of the principal amount of the loan where the term of the loan is a period of less than two years, 10 percent where the term is a period of two years but less than three years, and 15 percent where the term is a period of three years or more.
(3) With respect to a further advance on a note, the charges shall not exceed the charges for an original loan in the same amount as the further advance and made for a term equal to the remaining term of the note on which the further advance is being made, including any extension thereof.
(c) No interest may be charged with respect to any period prior to the date that the proceeds of the loan are made available to the borrower or are deposited in escrow.
(Amended by Stats. 1990, Ch. 834, Sec. 1.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10242.5.

10242.5. (a) A charge imposed for late payment of an installment due on a loan secured by a mortgage or deed of trust on real property shall not exceed an amount equal to 10 percent of the installment due, except that a minimum charge of five dollars ($5) may be imposed when the late charge permitted by this section would otherwise be less than that minimum charge.
The charge permitted by this section may be assessed only as a percentage of the increment of any installment due that is attributable to principal and interest.
(b) No charge may be imposed more than once for the same late payment of an installment. No late charge may be imposed on any installment which is paid or tendered in full within 10 days after its scheduled due date, even though an earlier maturing installment or a late charge on an earlier installment may not have been paid in full. For purposes of this subdivision, a payment or tender of payment made within 10 days of a scheduled installment due date shall be deemed to have been made or tendered for payment of that installment.
(c) A late-payment charge may be imposed pursuant to this subdivision for the payment of any balloon payment more than 10 days after the date due. The charge shall not exceed an amount equal to the maximum late charge that could have been assessed with respect to the largest single monthly installment previously due, other than the balloon payment, multiplied by the sum of one plus the number of months occurring since the late-payment charge began to accrue. For purposes of this subdivision, “month” means the period between a particular day of a calendar month and the same day of the next calendar month.
(Amended by Stats. 1989, Ch. 1275, Sec. 7.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10242.6.

10242.6. (a) The principal and accrued interest on any loan secured by a mortgage or deed of trust on real property containing only a single-family, owner-occupied dwelling may be prepaid in whole or in part at any time but only a prepayment made within seven years of the date of execution of such mortgage or deed of trust may be subject to a prepayment charge and then solely as herein set forth. An amount not exceeding 20 percent of the unpaid balance may be prepaid in any 12-month period. A prepayment charge may be imposed on any amount prepaid in any 12-month period in excess of 20 percent of the unpaid balance which charge shall not exceed an amount equal to the payment of six months’ advance interest on the amount prepaid in excess of 20 percent of the unpaid balance.
(b) Notwithstanding subdivision (a), there shall be no prepayment penalty charged to a borrower under a loan subject to this section if the dwelling securing the loan has been damaged to such an extent by a natural disaster for which a state of emergency is declared by the Governor, pursuant to Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code, that the dwelling cannot be occupied and the prepayment is causally related thereto.
(c) As used in this section, “owner-occupied dwelling” means a dwelling which will be owned and occupied by a signatory to the mortgage or deed of trust secured by the dwelling within 90 days of the execution of the mortgage or deed of trust.
(Amended by Stats. 1990, Ch. 663, Sec. 1.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10243.

10243. If the loan is not consummated due to the failure of the borrower to disclose the outstanding liens of record or the correct current vested title which is material to the loan upon the real property as provided by subdivision (c) of Section 10241, the borrower shall be liable for the costs and expenses provided in subdivision (a) of Section 10241 that have been paid or incurred and shall be liable for the payment of one-half of the charges provided in subdivision (b) of Section 10241. An exclusive agreement authorizing or retaining a licensee to negotiate a loan secured directly or collaterally by a lien on real property shall be limited to a term of not more than 45 days.
If the loan is not consummated and the broker is entitled to any charges, costs, or expenses authorized by this article, he or she may not record a lien or encumbrance against the borrower’s property except subsequent to the filing of a legal action pursuant to the Code of Civil Procedure to recover said charges, costs, or expenses. However, nothing contained herein shall prohibit a broker from recording a lien pursuant to a voluntary lien agreement in conjunction with a stipulation to dismiss an actual or proposed complaint for damages entitling the broker to those charges, costs, or expenses after written notice to the borrower that the broker proposes or has initiated a complaint for damages pursuant to the Code of Civil Procedure.
(Amended by Stats. 2018, Ch. 285, Sec. 51. (AB 2884) Effective January 1, 2019.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10244.

10244. Any loan made by any person and secured directly by a lien on real property, other than a note given back to the seller by the purchaser on account of the purchase price, which provides for installment payments and the term of which is less than three years, shall require substantially equal installment payments over the period of the loan with the final payment not payable until the maturity date thereof. No installment including the final installment shall be greater than twice the amount of the smallest installment.
If any loan having an original maturity period of less than three (3) years is renewed or refinanced, the total amount of charges to be paid on both the original obligation and the balance of such obligation, as renewed or refinanced, shall not in the aggregate exceed the amount of charges as provided in Section 10242, and if such a loan is renewed or refinanced through the person who negotiated the original loan, the total amount of costs and expenses to be paid on both the original obligation and the renewed or refinanced obligation shall not exceed in the aggregate the amount of costs and expenses authorized in subdivision (a) of said section.
The provisions of this section do not apply to a bona fide loan, secured by a first trust deed on real property, made in connection with the financing of the usual costs of the development of a residential, commercial or industrial building or buildings on the property under a written agreement providing for the disbursement of the loan funds as costs are incurred or in relation to the progress of the work and providing for title insurance insuring the priority of the security as against mechanic’s and materialmen’s liens or for the final disbursement of at least ten (10) percent of the loan funds after the expiration of the period for the filing of mechanics and materialmen’s liens.
(Amended by Stats. 1963, Ch. 1978.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10244.1.

10244.1. Notwithstanding the provisions of Section 10244, on a loan secured directly or collaterally by a lien on real property comprising an owner-occupied dwelling, for a term of six years or less, no installment, whether providing for payment of principal and interest or interest only, shall be greater than twice the amount of the smallest installment. This section does not apply to a note given back to the seller by the purchaser on account for the purchase price or any collateral loans secured solely by such a note. As used in this section, “owner-occupied dwelling” means a single dwelling unit in a condominium or cooperative or a residential building of less than three separate dwelling units, one of which will be owned and occupied by a signatory to the mortgage or deed of trust secured by such dwelling within 90 days of the execution of the mortgage or deed of trust.
(Added by Stats. 1973, Ch. 641.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10245.

10245. The provisions of this article, exclusive of the provisions of Sections 10240, 10240.3, 10242.5, and 10242.6, do not apply to any bona fide loan secured directly or collaterally by a first trust deed, the principal of which is thirty thousand dollars ($30,000) or more, or to any bona fide loan secured directly or collaterally by any lien junior thereto, the principal of which is twenty thousand dollars ($20,000) or more.
(Amended by Stats. 2007, Ch. 301, Sec. 4. Effective January 1, 2008.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10246.

10246. If any amount:
(a) In excess of the charges referred to in Section 10241 and limited by Section 10242,
(b) In excess of the charges permitted by Section 10242.5, or
(c) Prohibited by Section 10248.1, is received, the borrower may recover, from the person who shall have taken or received the excess or prohibited amount, three times the amount of the excess or prohibited amount and the borrower shall be entitled to costs and a reasonable attorney’s fee; provided that any action for recovery must be brought within two (2) years from the date such excess or prohibited charge was received. However, if the excess or prohibited amount is the result of a bona fide error the borrower may only recover such excess or prohibited amount.
(Amended by Stats. 1973, Ch. 641.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10247.

10247. The provisions of this article pertaining to maximum costs and expenses, charges and interest, together with the penalties stated in this article, shall apply to any transaction involving a third party as a purported lender or any other transaction which is used as a subterfuge or means of avoiding or evading the provisions of this article.
(Added by Stats. 1961, Ch. 886.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10248.

10248. Every person who, for compensation to be received directly or indirectly, sells, offers to sell, purchases for resale or offers to purchase for resale, or who negotiates or arranges for the purchase, sale or exchange of a promissory note secured directly or collaterally by a lien on real property, may receive only the maximum total charges provided for in Section 10242.
(Added by Stats. 1961, Ch. 886.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10248.1.

10248.1. No real estate licensee shall charge, receive, or negotiate for the payment by the borrower of any service charge or fee other than charges and fees specified in Sections 10241, 10241.1, 10242, and 10242.5, prepayment penalties as authorized by law, beneficiary-statement, payoff-demand, extinction, release, reconveyance or other removal of record fees, and trustee’s costs and fees, and any other fees if in accordance with the Civil Code and the Code of Civil Procedure.
(Amended by Stats. 1989, Ch. 1275, Sec. 9.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10248.2.

10248.2. (a) A borrower may not waive any right or remedy under this article. This subdivision shall not be deemed to prohibit a bona fide settlement, release or compromise of any claim under this article.
(b) If a loan is negotiated in violation of any section of this article, the licensee, on demand, shall return to the borrower any bonus, brokerage or commission paid or payable under subdivision (b) of Section 10242 for negotiation of such loans. In the event such demand is not satisfied within 20 days from the date of written demand, the borrower may commence an action under this subdivision and may recover actual damages or twice any bonus, brokerage, or commission paid or payable under subdivision (b) of Section 10242 for the negotiation of said loan whichever is greater, plus costs and reasonable attorney’s fees.
The “date of written demand” shall mean either the date upon which the written demand is personally delivered to the licensee or the date upon which the written demand is mailed to the licensee.
A licensee may not be held liable in any action brought under this section for a violation of this article if the licensee shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.
If the borrower proceeds under this section he may not proceed under Section 10246 as to the same breach.
(c) If a real estate licensee subject to the provisions of this article violates any provision of Section 10241.1 he shall be liable for, and pay over to the borrower, any commission or experience rating dividend attributable to the insurance written on that loan received by the licensee as a result of the sale of such insurance to the borrower in violation of Section 10241.1 in addition to any premium loss due to short rate cancellation of any insurance subject to Section 10248.1 which was purchased by the borrower.
(d) No action for damages shall be maintained under this section unless brought within two years after the maturity of the loan.
(e) The provisions of this article are not exclusive. The remedies provided for herein shall be in addition to any other procedures or remedies provided under law.
(Added by Stats. 1973, Ch. 641.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 7 - Real Property Loans › Section 10248.3.

10248.3. The provisions of this article shall apply only to those loans otherwise subject to this article which are made or negotiated by real estate brokers acting within the meaning of subdivision (d) of Section 10131 or subdivision (b) of Section 10240.
(Amended by Stats. 1982, Ch. 886, Sec. 7.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 8 - Out-of-State Land Promotions › Section 10249.

10249. (a) A person acting as a principal or agent who intends, in this state, to sell or lease or offer for sale or lease lots, parcels, or interests in a subdivision, as defined in Section 10249.1, situated outside of this state but within the United States, shall, prior to a sale, lease, or offer, register the subdivision with the commissioner. An application for registration shall be made on a form acceptable to the commissioner and include, together with a fee, a description of the offering, certification by the applicant that the subdivision is in compliance with all applicable requirements of the state or states wherein the project is located, evidence of this compliance, if applicable, and a consent to service as described in Section 10249.92.
(b) The commissioner, within 10 days of receipt of an application of registration, shall provide the applicant with notice of the completion of the registration or a notice of deficiency. If the department does not provide a notice within 10 days, the registration shall be deemed complete.
(Amended by Stats. 1996, Ch. 587, Sec. 8. Effective January 1, 1997.)
2023 California Code › Business and Professions Code - BPC › DIVISION 4 - REAL ESTATE › PART 1 - LICENSING OF PERSONS › CHAPTER 3 - Real Estate Regulations › ARTICLE 8 - Out-of-State Land Promotions › Section 10249.1.

10249.1. “Subdivision,” as used in Section 10249, includes all of the following:
(a) Improved or unimproved land or lands divided or proposed to be divided for the purpose of sale or lease, whether immediate or future, into five or more lots or parcels.
(b) Improved or unimproved land or lands in which, for the purpose of sale or lease, whether immediate or future, five or more undivided interests are created or proposed to be created.
(c) “Subdivision,” as defined in Section 11004.5, excluding “subdivision” as defined in subdivision (e) of that section.
(Amended by Stats. 1995, Ch. 723, Sec. 3.5. Effective January 1, 1996.)