By DeAnn Flores Chase November 21, 2016 Category: Real Estate Tags: California Business and Professions Code § 10232.3 California Business and Professions Code § 10238 California Business and Professions Code §10232.45 SB 647 threshold brokers
Many California state laws are revised or amended each year. It’s never too late to review some of the changes going forward as we approach the end of the year. 2016 saw a multitude of federal and state laws that affect the sale of real estate, as well as the agents and brokers thereof. Senate Bill 647, codified as California Business and Professions Code §§ 10232.3, 10232.45 and 10238 respectively, became effective January 1, 2016.
This law makes various changes to the rules governing threshold brokers including:
- adding a category of properties they are permitted to solicit;
- changing the timing of delivery of an investor questionnaire;
- exempting threshold brokers from having to update annual questionnaires; and
- removing certain reporting requirements to the California Department of Business Oversight regarding specified securities qualification exemptions.
Threshold brokers are individual brokers that perform activities that include arranging and servicing loans for individuals, and selling notes to other various parties and entities. Brokers that engage in these activities above certain “threshold” criteria, are considered “threshold brokers” and required to submit quarterly and annual reports to the California Bureau of Real Estate (BRE).
SB 647 adds the category of property described as “land that produces income from crops, timber, or minerals with a maximum LTV ratio of 60%” to the list of properties that threshold brokers are authorized to solicit. It clarifies the requirement for threshold brokers to obtain a completed investor questionnaire from persons to whom they offer or sell notes and deeds of trust. It further clarifies that, after obtaining an initial questionnaire, any subsequent questionnaire from the same person need only reflect any material changes from the immediately preceding questionnaire.
DeAnn Flores Chase and her team of experienced attorneys can advise you on all your legal real estate needs. Contact Chase Law Group, P.C. at (310) 545-7700 or visit www.chaselawmb.com to schedule a consultation.