California Foreclosures And Civil Code 1695
Has anyone had their purchase nullified by this code?
it basically give the seller 2 years after the sell of a foreclosed property to take legal action to reacquire the property if certain steps weren’t adhered to.
The code applies if you’re not planning on purchasing the property to live in and it is currently owner occupied.
1) 5 work day right to cancel contract
2) must disclose to seller that they have this right as part of the agreement.
3) if you use an agent or employee to solicit sellers they must hold a valid real estate licensee and have a bond for 2 times the purchase price.
At issue is the Employee status, most of us buy either in an LLC or Sub S corp. which makes us employees, what’s worse is that the bond is not obtainable in California..
Any feedback would be helpful.
[ Edited by IBuyHousesInc on Date 06/26/2005 ]
I had a friend violate it and end up getting 10 months in the county jail.
The main problem with the code is it cannot not be adhered to by investors...
The two time purchase price bond is not available in Ca
Good question... As a member of California Association of Realtors we are perplexed as to how we are to adhere to a law that cant be adhered to.
But at issue are sellers being tricked by 2nd round buyers into attesting that they never receive the required disclosure and documentation...
Example, if you’re a seller who sold your property for less than value and now because of the increase in value you could hire an attorney to rescind the sale up to 2 years later imagine the ramifications on our industry.
And the penalties are enormous
Thank you for the responce, are you by chance an attorney?
And what vehicle would you suggest for the Trust
Great! Thanks for the link!