Elizabeth, I know Washington State often follows California in terms of requirements and license laws. I'm not familiar with the California bond and am curious how long it's been in effect?

-Colleen

Interesting that agents can't represent investors in CA?  I suppose that is to try to discourage the agents from becoming the investors? 

Elizabeth,

It is so true .......  these terms are very scary to a lot of people.

Jamie

Hi Colleen: I'd have to go back and look up the inception date of the Home Equity Sales Act to give you an answer, but the short answer is a while now. I know, that's not very helpful.

Elizabeth, what is the logic behind this? Now, how do you know that your are actually working with an investor, not a scond home buyer?

So strange

Interesting that agents can't represent investors in CA?  I suppose that is to try to discourage the agents from becoming the investors?

Hi Michael: No, agents don't need representation. It's to prevent investors from taking advantage of distressed home sellers by engaging professional services.

Now, how do you know that your are actually working with an investor, not a scond home buyer?

Hi Jon: You know because, apart from asking, on the CAR purchase contract, the box for occupancy is either checked or unchecked. Your buyer is either applying for an owner occupant loan or not. To apply for an owner-occupied loan as a non-owner occupant (investor) constitutes mortgage fraud.

Elizabeth, I remember a law coming into play say, in the late 90's preventing investors from preying on sellers that were having problems. It's been awhile now. I did some research on it as a paralegal for some guys that were setting up a business to buy, quit claim, turn around and sell, yada, yada, yada purportedly to help out the distressed seller......bottom line? Illegal. There was a new law or an amendment set up to prevent that which I found in my research. It stopped them dead in their tracks - at least working with me. I suspect it's the same with a Realtor representing an investor. Some Realtors are not necessarily honest either - present company, of course, excepted.

Elizabeth,

I read the C.A.R. release on this the other day and will be following it to it's conclusion.  It is interesting that the bond requireent is being abolished when the market is so slow. 

Thanks for keeping us informed,

I still do not get it. If I buy it as a second home, I still do not check that box, so how do you know if this was an investor or a vacation home buyer?

As for mortgage fraud, I guess this is a very grey area. Mortgages run for decades, situations change. Someone die in the family, and they start renting that property, and so on.

It is not that obvious. Of course, if you have someone buying several homes, that's a different story.

Agents not allowed to represent investors in foreclosures - what is the back story on that one?

Hi Fran: I know. Isn't it ridiculous that a bond is required? You'd think the state would want us to help get rid of these properties.

Hi Teri: You can protect sellers all you want, but they will still be taken advantage of in some shape or form. It's kinda the nature of the business.

That's true, Jon, if an investor was claiming a second home, it would be hard to tell if they were an investor or an owner occupant. You have to use your best judgment.

Kevin: The Home Equity Sales Act says agents can't represent investors unless the agent posts a bond, and for the moment, there are no such bonds available. However, there is a case likely to go before the Supreme Court which would eliminate the bond requirement, since it's a stupid and senseless requirement in the first place because we can't get the bond.