Does any California broker or agent know when this act took affect? It appears to be a serious law when considering an offer on O/O homes which are in default.
No need to respond if you are going to tell me to google or search the forum.

From the CAR website:

Legislative History

Beginning in 1979, the California legislature enacted laws which sought to curb, under circumstances the legislature considered unscrupulous and fraudulent, business practices of certain individuals and firms (equity purchasers) who acquired homes in foreclosure from the owners (equity sellers). These laws were amended in 1990, 1997 and 2003. These transactions are entitled "Home Equity Sales Contracts," and the requirements are codified in California Civil Code Sections 1695 - 1695.17 ("Code") to strictly regulate the activities of an equity purchaser and his/her/their "representatives."

Thanks Jerry. It appears that this Act is now being brought to the forefront since I just got a bulletin from my board calling a meeting of office brokers, partial quote "problems before us pertaining to foreclosures....California law requires special handling of sales transactions to protect homeowners in foreclosure. This law called The Home Equity Sales Contract Act, applies to transactions that meet all of the following four conditions: the property is 1-4 family dwelling units; the owner occupies one of the units as his or her principal place of residence; there is an outstanding notice of default recorded; and the buyer will not use the property as a personal residence. This Act does not apply if one of these four conditions is unmet.

If all four conditions are met, the buyer must use a home equity sales contract, such as CAR's 'Notice of Default Purchase Agreement' and attachments. This agreement gives the seller, among other things, a 5-day right to rescind the contract. Furthermore, the home equity purchaser cannot be represented by an agent. More accurately stated, the law requires a buyer's agent to be bonded by an admitted surety insurer, but CAR is unaware of any insurer currently offering the bond.

The contract may be rendered void and the violator faces both civil and criminal liability, including one year imprisonment plus a $25,000 fine".

They finally added that,eh? Just out of curiousity, how many pages is a residential CAR form now? it is up to 20 yet?

LOL...yeah, our CAR contracts are getting padded just about every day, and not far off from 20 pages.