When broker handles
escrow
Escrow companies are licensed and
regulated by the California Department
of Corporations under the Escrow Law
in Division 6 of the California Financial
Code, commencing with Section 17000.
e Escrow Law denes “escrow agent”
as any person engaged in the business
of receiving escrows for deposit or
delivery.
e escrow holder acts to ensure
that all parties to the transaction
comply with the terms and conditions
of the agreement as set forth in the
escrow instructions. e escrow holder
may also coordinate the activities and
professional services involved in the
transaction, such as the activities of the
lender and the title company as well
as those between the buyer, seller and
broker.
is article briey discusses
the scope of the real estate broker
exemption from escrow agent licensing
requirements. When a real estate
broker acts in the capacity of an
escrow holder under the exemption
of the Financial Code Section 17006
(a)(4), the broker is subject to all the
requirements of the Real Estate Laws
and the Commissioner’s Regulations.
Financial Code Section
17006(a)(4) — Exemptions
from Escrow Law
is Financial Code Section requires
that “Any real estate broker licensed by
the Real Estate Commissioner while
performing acts in the course of or
incidental to a real estate transaction
in which the broker is an agent or a
party to the transaction and in which
the broker is performing an act for
which a real estate license is required”
is exempt from the Escrow Law.
Continued on page 11
Continued on page 2
CALIFORNIA DEPARTMENT OF REAL ESTATE WWW.DRE.CA.GOV SPRING 2010
Real Estate Bulletin
Providing Service, Protecting You
COMMISSIONER'S MESSAGE
Short sales — an overview and warning to licensees
re: fraud, legal and ethical mineelds*
By Wayne Bell, Chief Counsel, and Mark Tutera, Senior Deputy Commissioner
I. Introduction
In the current distressed California residential real estate environment, where many mortgage
loan borrowers owe more on their homes than their properties are worth and some have
opted to simply walk away from their homes and mail in their keys, so-called short sales have
become favored transactions. For a long time, loan modications were the primary strategy
of the day for nancially distressed homeowners. However, the results for loan modications
have been anemic at best.
In April of 2010, the federal government will oer nancial incentives to push short sales
through a program called Home Aordable Foreclosure Alternatives. e program is designed
to spur home sales, and it specically imposes new requirements on lien holders, including
requiring certain debt forgiveness, an abbreviated time frame to respond to short sale oers,
and provides government payments to homeowners (for moving and/or relocation expenses),
servicers, and lien holders.
New Trend: Short Sale Scams
*e authors thank Deputy Commissioner Summer Bakotich for her comments and review of this article.
For the past
eighteen months,
you have heard
me speak about
loan modication
and foreclosure
rescue scams. And
much has been
a c c o m p l i s h e d .
e Department has investigated over 2,500
complaints involving loan modications
and has issued over 525 Desist and Refrain
Orders and Accusations against respondents
who have violated the law. We have partnered
with the State Bar and with Federal, State
and local law enforcement ocials to ensure
the most egregious oenders are criminally
prosecuted. e Department has issued
Consumer Alerts and created new consumer
brochures to educate consumers on how to
avoid falling victim to loan modication
scammers.
e current economic trend has given rise
to a new type of potential fraud; the short sale.
A typical scam involves short sale ipping, in
which the buyer/investor is purchasing the
property from a lender at a discounted price
and at the same time marketing the property
at a higher price. If a buyer is found willing to
pay the higher price, the short sale and resale
close escrow either simultaneous or within a
few days time. And the lender is not told of
the second transaction. In most cases, if the
buyer/investor can’t nd a buyer who will pay a
Continued on page 12
PAGE 2 REAL ESTATE BULLETIN SPRING 2010
REAL ESTATE BULLETIN
Ocial Publication of the California Department of Real Estate
Vol. 70, No. 1 Spring 2010
STATE OF CALIFORNIA
Arnold Schwarzenegger, Governor
Business, Transportation and Housing Agency
Dale Bonner, Secretary
Department of Real Estate
Je Davi, Commissioner
Administration
Barbara Bigby, Chief Deputy Commissioner
Maria Giuriato, Real Estate Industry & Consumer Liaison
Wayne Bell, Chief Counsel
William E. Moran, Assistant Commissioner, Enforcement
Chris Neri, Assistant Commissioner, Subdivisions
Steve Ellis, Assistant Commissioner, Administrative Services
Fa-Chi Lin, Chief Auditor
omas L. Pool, Assistant Commissioner, Legislation & Public Information Services
Larry Cannon, Managing DC IV, Licensing & Exams
Joe Carrillo, Managing DC IV, Law Enforcement Coordinator
Sylvia Yrillogen, Managing DC III, Mortgage Lending
Shelly Harkins, Managing DC III, Education and Research
Real Estate Bulletin
omas L. Pool, Editor
Rosa Arellano, Publications Deputy
Jenny Brinlee, Production Editor
NORTHERN ENFORCEMENT AREA—DISTRICT OFFICES
Charles "Bill" Koenig, Managing Deputy Commissioner IV
FRESNO DISTRICT OFFICE
Luke Martin, Managing Deputy Commissioner III
2550 Mariposa Mall, Suite 3070, Fresno, 93721-2273
Consumer Information
...................................................... 559-445-5009
OAKLAND DISTRICT OFFICE
Ed Haberer, Managing Deputy Commissioner III
1515 Clay Street, Suite 702, Oakland, 94612-1462
Consumer Information
...................................................... 510-622-2552
SACRAMENTO DISTRICT OFFICE
Tricia Sommers, Managing Deputy Commissioner III
2201 Broadway, Sacramento
Mailing Address: P.O. Box 187000, Sacramento, 95818-7000
Consumer Information
.......................................................916-227-0864
SOUTHERN ENFORCEMENT AREA—DISTRICT OFFICES
LOS ANGELES REGION NORTH AND SAN DIEGO DISTRICT OFFICES
Phillip Ihde, Managing Deputy Commissioner IV
Robin Trujillo, Managing Deputy Commissioner III
320 W. 4th Street, Suite 350, Los Angeles, 90013-1105
Consumer Information
..................................................... 213-620-2072
Joseph Aiu, Managing Deputy Commissioner III
1350 Front Street, Suite 3064, San Diego, 92101-3687
Consumer Information
..................................................... 619-525-4192
LOS ANGELES REGION SOUTH AND BILINGUAL OUTREACH & ADVOCACY
Dolores Weeks, Managing Deputy Commissioner IV
Maria Suarez, Managing Deputy Commissioner III
320 W. 4th Street, Suite 350, Los Angeles, 90013-1105
Consumer Information
................................................... 213-620-2072
Spanish Language Consumer Assistance
..................... 213-576-6878
SUBDIVISIONS NORTH— SACRAMENTO DISTRICT OFFICE
Wes Jigour, Managing Deputy Commissioner III
2201 Broadway, Sacramento
Mailing Address: P.O. Box 187005, Sacramento, 95818-7005
Consumer Information
......................................................916-227-0813
SUBDIVISIONS SOUTH—LOS ANGELES DISTRICT OFFICE
Robert D. Gilmore, Managing Deputy Commissioner IV
320 W. 4th Street, Suite 350, Los Angeles, 90013-1105
Consumer Information
......................................................213-576-6983
e REAL ESTATE BULLETIN (ISSN 07347839) is published quarterly by the State of California, Department of Real Estate, 2201 Broadway, Sacramento, CA 95818,
as an educational service to all real estate licensees in the state under the provisions of Section 10083 of the Business and Professions Code.
What is a Short Sale?
Because not all real estate professionals are aware of the mechanics of short sale transactions,
the following overview is oered as a quick primer.
A short sale is a pre-foreclosure residential real estate transaction where the owner of
the mortgage loan, the lender or lien holder (hereinaer sometimes “Lender”), agrees to
(i) allow the home owner to sell his or her property for less than -- or “short” of -- the
outstanding amount owed on the mortgage loan, and to (ii) release the property from the
mortgage.
Homeowners who are “underwater” or “upside down” with respect to their mortgage
loans, seek to sell their homes “short” to avoid the threat of foreclosure action and to
lessen the credit damage that would accompany a foreclosure. Because of the “shortage”,
the transaction may involve “debt forgiveness” by the Lender. But this is oen preferable
to the Lender compared to a foreclosure – which has costs and risks for the Lender in
terms of lost payments, eviction, property maintenance, insurance, taxes, fees, and the like
-- or a loan modication, with the associated lack of certainty. Also, a short sale gets the
non-performing mortgage loan asset o of the Lender’s nancial books.
Is a Real Estate License Required to Represent the Parties to a Short
Sale?
e simple answer is YES, with some extremely narrow and limited exceptions and
exemptions.
A real estate broker license (or a real estate salesperson license where that person is
working under the supervision of his or her broker) is required under § 10131 (d) of the
California Business and Professions Code (B&P Code) where a person, in a representative
capacity on behalf of another, “negotiates loans…or performs services for borrowers
or lenders …in connection with loans secured directly or collaterally by liens on real
property…” for or in expectation of compensation, “regardless of the form or time of
payment”.
In addition, under B&P §10131(a), a real estate broker license (or salesperson license
with appropriate supervision by the broker of record) is required of any person who, as a
representative of another, “Sells or oers to sell, buys or oers to buy, solicits prospective
sellers or purchasers of, solicits or obtains listings of, or negotiates the purchase, sale or
exchange of real property…”
e exceptions and exemptions from the licensure requirement are few and narrowly
drawn. For example, a California licensed lawyer is exempt when that person renders
services in the course and scope of his or her practice as an attorney. Additionally, if a
person is acting solely on behalf of himself or herself, or itself in the case of an entity, there
is no need for a real estate license since the person or entity is not acting on behalf of
another or others.
Because there is or may be mortgage loan “debt forgiveness” in a short sale, some
people and entities argue that they can, and attempt to, consummate short sales on behalf
of others without a real estate license by asserting that they are “debt negotiators”, “debt
resolution experts”, “loss mitigation practitioners”, “foreclosure rescue negotiators”, “short
sale processors”, “short sale facilitators”, “short sale coordinators”, “short sale expeditors”, or
some other type of unlicensed short sale or debt specialist.
Yet it is because the loan debt is “secured directly or collaterally by liens on real property”
that brings into play the legal mandate for a real estate broker license under California law.
If a real estate licensee wants to take a short sale listing and not conduct the short sale
negotiations with the homeowner’s lender, then the licensee must seek to ensure that an
unlicensed third party is not performing the negotiations on behalf of the seller.
Criminal Penalties for Those Who Participate in Unlicensed Activities
ose who engage in short sale transactions, including the related “negotiations”, and who
are unlicensed (and do not have the benet of an exception/exemption), are in violation of
Short Sales Continued from page 1
Continued on page 3
SPRING 2010 REAL ESTATE BULLETIN PAGE 3
California law. e penalties include nes and/or imprisonment under B&P §10139.
II. Fraud, and Questionable Conduct and Activities
In addition to seeing unlicensed activities in the market with respect to short sales, the California Department of Real Estate (hereinaer
“DRE”) has also been alerted to fraudulent short sale transactions. Before discussing an example of short sale fraud that is becoming
prevalent, it must be noted that the types and varieties of fraud (some quite elaborate) are many and are limited only by the imaginations
of those who commit fraud. us, this segment and the succeeding discussion on scenario/scheme variations and legal and ethical
mineelds, is intended to raise concerns and issues for real estate licensees in California. But it is not intended to be comprehensive in
scope.
A. Short Sale Fraud -- Flipping by Unlicensed Entities Using Straw Buyers
In some cases, unlicensed “short sale facilitators” hone in on homes that are on the verge of foreclosure and persuade the lenders to
accept “lowball” purchase oers, oen times by using “straw buyers”, questionable or self-interested broker price opinions or appraisals,
and by failing to disclose that a sale at a higher price has previously been put on the table or negotiated.
In this case example, ABC Short Sale Services (hereinaer “ABC” -- the name has been changed for the purposes of this example),
an unlicensed “short sale facilitator”, contacts a distressed homeowner and tells him that ABC will facilitate the sale of underwater
property with the best possible economic outcome to the homeowner. Payments to the homeowner may even be promised to entice
interest.
ABC then contacts a licensed California real estate broker (hereinaer “Broker”) with little or no knowledge about short sale
transactions, and oers to refer a short sale listing to the Broker. For the business, the Broker pays a referral fee to ABC. Once ABC
has a Broker on board, ABC requires that the homeowner/seller sign a contract with ABC, in which the homeowner/seller agrees to
permit ABC to serve as the homeowner/seller’s “short sale negotiator”. e contract has language like the following: “Seller agrees that
he will no longer market the property and grants to ABC all necessary rights to market, negotiate, and enter into an agreement to sell
the property to an unrelated third party”.
For its services, ABC charges the homeowner/seller a $395 upfront fee and then a second $195 fee for the negotiation services.
In this case, $480,000 is owed on the mortgage loan to the Lender, a federally insured nancial institution, and the fair market
value has fallen to $410,000. e property is listed by the Broker for $410,000, and the Broker takes no part in the “negotiations”.
Because lenders and lien holders do not always require the listing brokers to present to them every single oer made for the short
sale property, ABC only presents to the Lender the oer(s) it so chooses. Because ABC controls all of the information provided to
the Lender, ABC also decides to withhold legitimate oers from the Lender and convinces the Lender that the home is overpriced at
$410,000.
ABC presents its own $340,000 oer to the Lender, in the name of a ctitious buyer or “straw person” (hereinaer “SP 1”).
Because ABC has controlled all of the information to the Lender during the listing period, and has withheld legitimate higher oers,
the Lender is led to conclude that SP 1’s $340,000 oer is the highest and best, and the Lender accepts SP 1’s oer.
Following acceptance of SP 1’s $340,000 oer, and once escrow is open, ABC will focus on the primary objective of its scam by
nding a second, legitimate buyer for more money as a “ip”. To accomplish this, ABC, through SP 1, will oer the soon to be newly
purchased property for sale via the Multiple Listing Service. ABC will also contact the various buyers’ agents who presented oers
higher than $340,000 during the short sale listing process, but whose oers were not presented to and withheld by ABC from the
Lender.
ABC will inform all prospective buyers’ agents that “the short sale property is already in escrow”, but that it will be available for
immediate sale aer the close of escrow.
Buyer 1 is extremely interested in the property, and is willing to pay the fair market value of $410,000. Buyer 1 then agrees to
participate in a double or simultaneous escrow and oers $410,000. ABC, through SP 1 (ABC’s confederate), concurrently enters into
a $410,000 purchase contract for the property with Buyer 1, conditioned upon SP 1 obtaining title, and that the “second” sale to Buyer
1 go through ABC’s handpicked lender.
Aer the closing of the second sale, ABC makes over $70,000, including referral fees from the Broker and fees from the original
distressed homeowner/seller.
Brief Analysis of this short sale ipping fraud example: In the case above, ABC has violated the California B&P Code by engaging in
real estate licensed activities without a license. Also, they have collected advance fees in violation of California law. en, they have made
a large prot through false pretenses at the expense of a federally insured nancial institution, by misrepresenting the value of the home
to the Lender. is may constitute federal loan fraud, which is a serious felony oense which is punishable by imprisonment and nes.
e Federal Bureau of Investigation lists variations of short sale ipping as real estate fraud.
B. Short Sale Fraud – Scenario/Scheme Variations and Warnings re: Legal and Ethical Mineelds
1. Multiple Lenders and Lien Holders, and Payments Outside of Escrow:
Where more than one Lender or lien holder is involved, the negotiations are complicated. Second and other subordinate lien
holders oen hold up the short sale transaction, and seek to extract the largest possible payment in consideration for releasing
their lien.
Oen times there are monies secretly paid outside of escrow, without the knowledge of the senior lien holder. is is a sure
Short Sales Continued from page 2
Continued on page 9
PAGE 4 REAL ESTATE BULLETIN SPRING 2010
2715 Licensee's failure to maintain current business or mailing address with
DRE
2725 Failure of broker to exercise reasonable supervision over the activities of
his or her salespersons
2726 Failure to have broker-salesperson agreements
2731 Unauthorized use of ctitious business name
2731(a) Failure to obtain ctitious business name license
2752 Broker's failure to notify DRE of salesperson employment
2753 Broker's failure to retain salesperson's license at main oce or return the
license at termination of employment
2831 Failure to keep proper trust fund records
2831.1 Inadequate separate trust fund beneciary records
2831.2 Failure to reconcile trust account
2832 Failure to comply with trust fund handling provisions
2832.1 Failure to obtain permission to reduce trust fund balance in a multiple
beneciary account
2832(a) Failure of broker to place trust funds into hands of owner, into neutral
escrow depository or trust fund account within three business days of
receipt
2832(d) Failure of broker holding trust funds contingent on oer of acceptance to
properly place funds within three days of acceptance.
2832.1 Failure to obtain permission to reduce trust fund balance in a multiple
beneciary account
2834 Trust account withdrawals by unauthorized or unbonded person
2835 Retention of broker funds in trust accounts
2840 Failure to give approved borrower disclosure
2840.1 Failure to give approved borrower disclosure
2847.3 Failure to properly disclose license status in mortgage loan advertising
2848 Violation of mortgage loan advertising rules
2950 Violation of broker-controlled escrow requirements
2950(d) Failure of broker handling escrows to maintain records and accounts
2950(f) Failure to deposit escrow trust funds
2950(g) Broker-handled escrow disbursement without written instructions
2950(h) Failure to disclose interest in the agency holding the escrow
2951 Improper record keeping for broker handled escrows
2972 Advance fee accounting
• A list of actions is not published in this Bulletin until the 30-day
period allowed for court appeal has expired or, if an appeal
is led and the disciplinary action is stayed, until the stay is
dissolved. Names of persons to whom licenses are denied on
application are not published.
• LicenseesarelistedalphabeticallybytheDistrictOceregion
of responsibility.
• elicensetypeislistedinparenthesesaerthelicensee’sname.
[REB – Real Estate Broker; RREB – Restricted Real Estate
Broker; RES – Real Estate Salesperson; RRES – Restricted Real
Estate Salesperson; PRLS – Prepaid Rental Listing Service;
RPRLS – Restricted Prepaid Rental Listing Service; REO – Real
Estate Ocer; REC – Real Estate Corporation]
• Below are brief summaries of various regulations and code
sections. e full text of the sections is available on the DRE
Web site www.dre.ca.gov under Real Estate Law and/or
Regulations.
• Disciplinaryactionsthatare“stayed”meansthereis“adelayin
carrying out” all or part of the recommended discipline.
Disciplinary action: September 2009 — November 2009
COMMISSIONER’S REGULATIONS
BUSINESS AND PROFESSIONS CODE
475(a)(1) Making false statement in license application
480(c) Denial of license on grounds of false statement in license application
490 Substantially related criminal conviction
498 License obtained by fraud or misrepresentaion
10085 Failure to submit advance fee materials
10085.5 Illegal advance fees
10130 Acting without license
10137 Unlawful employment or payment of compensation
10140.6 Failure to disclose license status in advertising of acts for which a license
is required
10145 Trust fund handling
10146 Advance fee handling
10148 Failure to retain records and make available for inspection
10159.2 Failure by designated ocer to supervise licensed acts of corporation
10159.5 Failure to obtain license with ctitious business name
10160 Failure to maintain salesperson licenses in possession of broker
10161.8 Failure of broker to notify Commissioner of salesperson employment
10162 Failure to maintain a place of business
10165 Failure to comply with specied B&P code sections
10176(a) Making any substantial misrepresentation
10176(b) Making false promise
10176(c) Continued & agrant course of misrepresentations through salespersons
10176(e) Commingling trust funds with brokers funds
10176(g) Secret prot or undisclosed compensation
10176(i) Fraud or dishonest dealing in licensed capacity
10177(a) Procuring a real estate license by misrepresentation or material false
statement
10177(b) Conviction of crime
10177(d) Violation of real estate law or regulations
10177(f) Conduct that would have warranted denial of a license
10177(g) Negligence or incompetence in performing licensed acts
10177(h) Failure to supervise salespersons or licensed acts of corporation
10177(j) Fraud or dishonest dealing as principal
10177(k) Violation of restricted license condition
10177.5 Civil fraud judgment based on licensed acts
10178 Failure of broker to notify Commissioner of salesperson termination
10232 Failure to notify DRE of threshold status
10232.2(a) Failure to provide independent audit reports
10232.2(c) Failure to provide trust fund reports
10232.25 Failure to le trust fund status reports
10234(a) Failure to record trust deed in name of beneciary
10235 False advertising in mortgage loan activities
10235.5 Lender purchaser disclosure violation
10236.4 Failure to include license number or DRE License Information telephone
number in documents
10238(a) Failure of broker to notify Commissioner within 30 days of 1st mortgage
transaction or of any material change in required notice
10238(g) Sale of notes with illegal terms
10238(h) Exceeding loan-to-value limits
10240 Failure to provide mortgage loan disclosure statement
10241 Improper mortgage loan disclosure statement
10236.4 Failure to include license number or DRE license information telephone
number in documents
11018.1 Failure to give public report
11018.2 Sale of subdivision lots without a public report
14702 Illegal use of loan number/amount in solicitation material
17533.6 Misleading advertising
17539.4 Misleading advertising
SPRING 2010 REAL ESTATE BULLETIN PAGE 5
FRESNO REGION
Alexander, Gregory P. (REB)
3716 Whirlaway Dr., Modesto
Eective: 10/21/09
Violation:
2731(a), 10148, 10159.5, 10176(a)
(b)(c), 10176(g)(i), 10177(d)(g)(h)
(j), 10240, 10241
Avina & Hageman, Inc. (REC)
1141 W. Shaw Ave. #101, Fresno
Eective: 10/7/09
Violation: 10165, 10177(d)
Avina, Raymond Charles (REB)
1141 W. Shaw Ave. #101, Fresno
Eective: 10/709
Violation: 10176(a)
Creekside Financial, Inc. (REC)
6760 El Camino Real, Atascadero
Eective: 11/20/09
Violation:
2832.1, 10145, 10177(d),
10232,
10232.2(a)(c), 10232.25, 10238(a)
(g), 10238(h)(4)(A), 10238(h)(4)
(B), 10238(h)(4)(d), 10234(a)
Dalal, Meghna (RES)
3518 Deanes Lane, Capitola
Eective: 11/30/09
Violation: 490, 10177(b)
Laprade, Hubert Wayne (REB)
6760 El Camino Real, Atascadero
Eective: 11/20/09
Violation: 10159.2, 10177(d)(g)(h)
Large, Richard Michael (RES)
12396 E. Paul St., Clovis
Eective: 10/12/09
Violation: 490(a), 10177(b)
Loveall, Clyna Marie (RES)
1970 Acacia Dr., Merced
Eective: 9/8/09
Violation: 490, 10177(b)
Olive Branch Mortgage, Inc. (REC)
400 N. Gateway, Madera
Eective: 10/7/09
Violation: 10165, 10177(d)
Parker, Keith James (RES)
14006 Raphael Ave., Bakerseld
Eective: 10/5/09
Violation: 490, 10177(b)
Rangel, Esau (RES)
3001 Mammoth Way, Modesto
Eective: 9/23/09
Violation: 10176(i), 10177(j)
Rosales, Gloria (RES)
PO Box 578584, Modesto
Eective: 11/10/09
Violation: 10176(i), 10177(g)(j)
Silva, Fred L. (RES)
502 N. Mercy Springs Rd., Los Banos
Eective: 9/1/09
Violation: 10176(a)(i), 10177(d)(j)
Silva, Neomi A. (RES)
502 N. Mercy Springs Rd., Los Banos
Eective: 9/1/09
Violation: 10176(a)(i), 10177(d)(j)
Smith, Morris E. (RES)
2309 Eicher Ave., Modesto
Eective: 10/8/09
Violation: 490, 10177(b)
Taylored Mortgage, Inc. (REC)
1758 W. Robertson Blvd., Chowchilla
Eective: 10/7/09
Violation: 10165, 10177(d)
Walls, Nichole Anntionett (RES)
602 Grant Terrace, Ta
Eective: 11/17/09
Violation: 490, 10177(b)
LOS ANGELES REGION
Aburto, Juan Carlos (RES)
7411 Main St., Westminster
Eective: 9/1/09
Violation: 490, 10177(b)
Barron, Lizbeth (RES)
3476 Milton St., Pasadena
Eective: 9/30/09
Violation: 10177(f)(j)
Barsana, Delia Garillo (RES)
17121 Janell Ave., Cerritos
Eective: 9/22/09
Violation: 490, 10177(b)
Blueleaf Financial, Inc. (REC)
3435 Wilshire Blvd., Ste. 1103, Los Angeles
Eective: 9/14/09
Violation: 10137, 10177(d)
Brandeis, Cynthia Lissette (RES)
17401 Marilla St., Northridge
Eective: 10/5/09
Violation: 490, 10177(b)
Bruns, Eric Martin (REB)
25202 Crenshaw Blvd. #200, Torrance
Eective: 11/3/09
Violation: 490, 10177(b)
Butcher, Jeron Lamar (RES)
4049 Van Baren Pl, Culver City
Eective: 9/1/09
Violation: 490, 10177(b)
Chong, Julietta Gladys (RES)
19930 Vanowen St., Winnetka
Eective: 9/8/09
Violation: 490, 10177(b)
Chung, Johnny (RES)
201 S. Atlantic Blvd. #C, Alhambra
Eective: 11/2/09
Violation: 490, 10177(b)
Crawford, Evon Beatrice (RES)
6707 Springpark Ave. #9, Los Angeles
Eective: 9/29/09
Violation: 490, 10177(b)
Dancy, Linda J. (REB)
4000 Barranca Parkway, Ste. 250, Irvine
Eective: 10/23/09
Violation: 10177(f)
Davis, Neal Evan (RES)
9461 Charleville Blvd. #345, Beverly Hills
Eective: 9/16/09
Violation: 490, 10177(b)
Equity Income (REC)
827 E. Colorado St., Glendale
Eective: 9/9/09
Violation: 2832, 2832.1, 2950, 10145,
10159.5, 10160, 10161.8,
10177(d)(g)
Farag, Antwan John (RES)
44307 57
th
St. West, Lancaster
Eective: 9/16/09
Violation: 490, 10177(b)
Financial Investments Solutions Corp. (REC)
17034 Bellower Blvd., Bellower
Eective: 9/22/09
Violation: 2831, 2831.1, 2831.2, 2970,
2972, 10085, 10137, 10145,
10146, 10177(d)
Gomez, Yimi Gemer (REB, REO)
16376 Mallory Dr., Fontana
Eective: 9/22/09
Ocer of: Financial Investments
Solutions Corp.
Violation: 2831, 2831.1, 2831.2, 2970,
2972, 10085, 10137, 10145,
10146, 10177(d)
Gonzales, James (RES)
523 Signal Rd., Newport Beach
Eective: 11/10/09
Violation: 10177(k)
Grayson, Letha Maria (RES)
6423 Deep Dell Pl., Los Angeles
Eective: 11/3/09
Violation: 490, 10177(b)(k)
Gutierrez, Ivan (RES)
11450 Potter St., Norwalk
Eective: 11/18/09
Violation: 490, 10177(b)
Harrill, Brett Evan (RES)
3005 N. Pinewood St., Orange
Eective: 10/5/09
Violation: 490, 10177(b)(k)
Hartmann, Beth Susan (RES)
28705 Crestridge Rd.,
Rancho Palos Verdes
Eective: 9/1/09
Violation: 490, 10177(b)
Haworth, Anthony Joseph (RES)
9461 Charleville Blvd., Beverly Hills
Eective: 10/5/09
Violation: 10177(f)
Helsing, Mark Alan (REB, REO)
12341 Newport Ave., Ste. B-100, Santa Ana
Eective: 9/21/09
Ocer of: HLHS Financial Services, Inc.
Violation: 10176(a)(c)(i)
HLHS Financial Services, Inc. (REC)
12341 Newport Ave., Ste. B-100, Santa Ana
Eective: 9/21/09
Violation: 10176(a)(c)(i), 10177.5
Ho, Chanh Trung (RES)
9353 Bolsa Ave. #K53, Westminster
Eective: 11/18/09
Violation: 490, 498, 10177(a)(b)
Ho, Mike (REB)
14541 Brookhurst St. #C-11, Westminster
Eective: 9/14/09
Violation: 490, 10177(b)
International Mortgage Company, Inc. (REC)
450 N. Brand Blvd., Ste.150, Glendale
Eective: 11/18/09
Violation:
2715, 2742, 2831, 2831.1, 2831.2,
2832, 2832.1, 2835, 2950, 2951,
10130, 10145, 10162, 10165,
10176(a)(b)(c)(i), 10177(d)(g)
Kelter, Buster Lee (RES)
121 22
nd
St., Huntington Beach
Eective: 11/12/09
Violation: 490, 10177(b)
Keyes, Tammy Denise (RES)
13210 Harper #110, Garden Grove
Eective: 9/14/09
Violation: 490, 10177(b)
Kingsley, Mark Richard (RES)
8141 East 2nd St., Ste. 208, Downey
Eective: 11/9/09
Violation: 490, 10177(b)
Lenda, Rhonda (RES)
2422 Wailea Ct., Santa Maria
Eective: 11/2/09
Violation: 490, 10177(b)
Li, Jianghui (RES)
19 Via Del Macci Ct., Lake Elsinore
Eective: 9/14/09
Violation: 490, 10177(b)
Lin, Jao-Hung (RES)
8809 Jaylee Dr., San Gabriel
Eective: 11/4/09
Violation: 490, 10177(b)
Lopez, Julio Cesar (RES)
1949 Kemper Cir., Los Angeles
Eective: 9/29/09
Violation: 490, 10177(b)
Marquez, Renato David (RES)
912 Timberwood, Irvine
Eective: 9/16/09
Violation: 490, 10177(b)
McVey, Michael John (RES)
5361 Berkley, Westminster
Eective: 9/29/09
Violation: 490, 10177(b)
Mendoza, Maribel (RES)
3452 E. Florence Ave., Huntington Park
Eective: 9/21/09
Violation: 490, 10177(b)
Miguel, Monalisa (RES)
1323 N LaBrea Ave. #145, Inglewood
Eective: 9/14/09
Violation: 490, 10177(b)
Mordoki, Mirella (RES)
1038 E. Bastanchury Rd. #293, Fullerton
Eective: 10/5/09
Violation: 490, 10177(b)
Najeeb, Aliasgar Shabbir (RES)
22708 Criswell St., West Hills
Eective: 9/16/09
Violation: 490, 10177(b)
Nataren, Susana (RES)
4415 Clara St. #B, Cudahy
Eective: 9/29/09
Violation: 490, 10177(b)
Navarro, Javier (RES)
17046 Devonshire St., Northridge
Eective: 11/2/09
Violation: 490, 10177(b)
Navarro, Sonia H. (RES)
1290 Skeel Dr., Camarillo
Eective: 10/28/09
Violation: 490, 10177(b)
Nguyen, Anthony anh (RES)
10635 La Alondra Ave., Fountain Valley
Eective: 9/14/09
Violation: 490, 10177(b)
Perez, Robert Escalera (REB)
4315 E. Lowell St., Ste. A, Ontario
Eective: 10/7/09
Violation:
2832.1, 2834, 2950(d)(g), 2951,
10145, 10148, 10176(a)(e)(g)(i),
10177(d)(g)(h)
Pesin, Alexander (REB)
23623 Ladrillo St., Woodland Hills
Eective: 10/21/09
Violation: 490, 10177(b)
Ramirez, Andrea Raquel (RES)
10782 Wilson Ave., Rancho Cucamonga
Eective: 10/21/09
Violation: 490, 10177(b)
Reynoso, Eliseo (RES)
222 East H Street, Ontario
Eective: 10/5/09
Violation: 490, 10177(b)
Romero, Gabriel Roberto (RES)
847 W. Palmdale Blvd., Palmdale
Eective: 9/22/09
Violation: 490, 10177(b)(k)
Saldana, Angel Carbajal (RES)
850 N. Center Ave. #3E, Ontario
Eective: 10/14/09
Violation: 490, 10177(b)
Serdio, Maria Anne (RES)
43 Greenwell, Santa Barbara
Eective: 9/2/09
Violation: 490, 10177(b)
Shelby, Les (RES)
1403 N. Tustin Ave., Ste. 380, Santa Ana
Eective: 11/3/09
Violation: 490, 10177(b)
Stull, Daniel John (RES)
10385 Beaumont, Cherry Valley
Eective: 9/1/09
Violation: 490, 10177(b)(k)
Taylor, Trina Marie (RES)
8723 Olivine Rd., Victorville
Eective: 10/5/09
Violation: 490, 10177(b)
Tevanyan, Vagram (RES)
1225 N. Serrano Ave. #1, Los Angeles
Eective: 9/8/09
Violation: 490, 10177(b)
Tristar Realty & Investments, Inc. (REC)
14515 Valley View Ave., Ste. G,
Santa Fe Springs
Eective: 10/30/09
Violation: 2831, 10145, 10177(g)
Tubbiola, Michael (REB)
18350 Mount Langley St. #210, Fountain
Valley
Eective: 9/9/09
Violation:
2731, 2970, 10085.5, 10137,
10159.5, 10176(a)(b)(c)(i),
10177(d)(g)
Turner, Ryan TJ (RES)
2455 W. Serene Ave 734, Las Vegas, NV
Eective: 11/3/09
Violation: 490, 10177(b)
REVOKED LICENSES
PAGE 6 REAL ESTATE BULLETIN SPRING 2010
Vazquez, Angel Ricardo (RES)
13965 Herron St., Sylmar
Eective: 10/26/09
Violation: 490, 10177(b)
Vega, Ericka Kyra (RES)
8430 Glendola Dr., Pico Rivera
Eective: 11/3/09
Violation: 490, 10177(b)
World Financial Funding, Inc. (REC)
120 S. Victory Blvd. #203, Burbank
Eective: 9/23/09
Violation: 2715, 10162, 10165,
10177(d)(g)
Yoo, James (REB, REO)
3435 Wilshire Blvd., Ste. 1103, Los Angeles
Eective: 9/14/09
Ocer of: Blueleaf Financial, Inc.
Violation: 10137, 10159.2, 10177(d)
OAKLAND REGION
Almasi, Azita (RES)
965 Laurel Glen Dr., Palo Alto
Eective: 9/7/09
Violation: 10177(b)
Anthony, Manequa Shavaughn (REB)
4900 Canada Valley Rd. #237, Antioch
Eective: 11/30/09
Violation: 490, 10177(b)
Avemos Financial Group, Inc. (REC)
968 Mowry Ave., Fremont
Eective: 11/2/09
Violation:
2970, 2972, 10085, 10130,
10137, 10146, 10177(d)
Barajas, Alfredo (REB)
1652 Alum Rock Ave., San Jose
Eective: 11/16/09
Violation: 2725, 2726, 2731(a), 2753,
2832, 10159.5, 10160,
10176(a)(b)(c)(i), 10177(d)
(g)(j)
Barajas, Juan Manuel (RES)
4914 Wellington Park Dr., San Jose
Eective: 11/16/09
Violation:
10176(a)(b)(c)(i), 10177(d)
(g)(j)
Barclays Pacic Lending Corp. (REC)
605 E. Tennant Ave., Unit F,
Morgan Hill
Eective: 11/15/09
Violation: 10176(i), 10177(j)
Bossaller, Jerey Carey (RES)
1050 Camino Coronado,
Rohnert Park
Eective: 11/20/09
Violation: 10177(j)
Buaron, Recio Espayos (REB)
4197 Watkins Way, San Jose
Eective: 10/22/09
Violation: 2715, 10162, 10177(d)
Carrasco, Martin Jr. (RES)
3182 Dovela Way, San Jose
Eective: 11/16/09
Violation:
10130, 10176(a)(b)(c)(i),
10177(d)(g)(j)
Chavis, Darrick J. (RES)
983 Centennial Dr., Brentwood
Eective: 11/5/09
Violation: 490, 10177(a)(b)
Feldman, Harry Warren (REB)
6834 Jarvis Ave., Newark
Eective: 10/6/09
Violation: 490, 10177(b)
Foxworthy, Kathleen Marie (RES)
6 ½ Willowmere Rd., Danville
Eective: 9/22/09
Violation: 490, 10177(b)
Guiten, Zandra Dee (REB)
580 Grand Ave. #J, Oakland
Eective: 10/5/09
Violation: 10177.5,
Hamilton Financial Mortgage Corp. (REC)
17015 Walnut Grove, Ste. 103, Morgan Hill
Eective: 11/15/09
Violation: 10176(i), 10177(j)
Huynh, Cindy Tuyet (REB)
37553 Fremont Blvd., Fremont
Eective: 11/23/09
Violation: 10176(a)(i), 10177(j)
Jones, Alton L. (RES)
6055 Wood Dr., Oakland
Eective: 9/9/09
Violation: 490, 10177(b)
Livermore, William Sealy (REB)
15 Garden Ave., San Rafael
Eective: 10/20/09
Violation: 10177(b)
Mendoza, Stephen Aquino (RES)
1302 Southgate Ave., Daly City
Eective: 11/25/09
Violation: 490, 10177(b)
Moein, Ali R. (RES)
20605 Ashley Way, Saratoga
Eective: 10/29/09
Violation: 10130, 10137, 10177(d)
Nitsch, Grail Marie (RES)
18660 Passeo Tierra, Saratoga
Eective: 9/9/09
Violation: 490, 10177(b)
Noble, Roosevelt Jr. (RES)
2 North Market St. #200, San Jose
Eective: 9/9/09
Violation: 490, 10177(b)
Palm Tree Financial & Realty, Inc. (REC)
22211 Foothill Blvd., Hayward
Eective: 11/20/09
Violation:
2752, 2753, 2831, 10130,
10137, 10160, 10161.8,
10176(a)(b)(c)(i), 10177(d)
(g)(j), 10240
Palmieri, Marco Steven (REB)
10 Skylark Dr., Ste. 80, Larkspur
Eective: 11/25/09
Violation: 490, 10177(b)
Rashidifar, Amir (RES)
2308 Samoa Way, San Jose
Eective: 11/18/09
Violation: 490, 10177(b)
Sandoval, Adan (RES)
2368 Hickory Dr., Concord
Eective: 11/30/09
Violation: 490, 10177(b)
Savage, Marcus Troy (REB)
671 San Ramon Valley Dr., Danville
Eective: 11/2/09
Violation:
2731, 2847.3, 2848(16)
(17), 10130, 10140.6, 10145,
10159.5, 10176(a)(b)(c)(e)(i),
10177(d)(g)(j), 10235, 10235.5,
10236.4, 17539.4
Singh, Pritpal (RES)
2709 Highland Meadows Ct., Dublin
Eective: 9/22/09
Violation: 490, 10177(b)
Stoneridge Financial Services (REC)
671 San Ramon Valley Dr., Danville
Eective: 11/2/09
Violation: 10145, 10176(e)(i), 10177(d)(g)
Tran, Yem Dang (REB)
289 Ascente Commons, San Jose
Eective: 11/30/09
Violation: 490, 10177(b)
Vasallo, Joseph Deguzman (RES)
33161 Fih St., Union City
Eective: 11/25/09
Violation: 490, 10177(b)
White, Derrick (REB)
1723 Hamilton Ave. #K, San Jose
Eective: 10/22/09
Violation: 2715, 10162, 10177(d)
Wong, Gilbert M. (RES)
PO Box 361805, Milpitas
Eective: 10/29/09
Violation: 490, 10177(b)
SACRAMENTO REGION
Adafre, Aweke Belayneh (RES)
2811 Santa Paula Ct., Sacramento
Eective: 11/16/09
Violation: 10176(a)(i), 10177(j)
Alforque, Lulu Bardonado (REB)
4600 S. Tracy Blvd., Ste. 114,
Edgewood Corporate Center, Tracy
Eective: 10/9/09
Violation: 10176(a)(i), 10177(g)(j)
Apostol, Winston Villanueva (RES)
8909 Clancy Ct., Elk Grove
Eective: 9/8/09
Violation: 490, 10177(b)
Arce, Hector Abayan (RES)
PO Box 580532, Elk Grove
Eective: 11/25/09
Violation: 490, 10177(b)
Balalis, Emanuel Michael (RES)
898 San Ramon Way, Sacramento
Eective: 9/3/09
Violation: 10176(i), 10177(d)
Blanchard, Donald Mark (RES)
873 S. Artistic Cir., Springville, UT
Eective: 10/28/09
Violation: 490, 10177(b)
Hale, Keith Aaron (RES)
5779 Westchester Cir., Stockton
Eective: 10/5/09
Violation: 490, 10177(b)
Johnson, Jan A. (RES)
PO Box 768, Clements
Eective: 9/30/09
Violation: 490, 10177(b)
Kalfsbeek, Charles Joseph (RES)
PO Box 70, Arbuckle
Eective: 11/25/09
Violation: 490, 10177(b)
Lewis, Ronald Francis (RES)
2301 W. Alpine Ave. #2, Stockton
Eective: 11/24/09
Violation: 490, 10177(b)
Monaco, Justin Paul (REB)
2851 Vistamont Way, Chico
Eective: 9/7/09
Violation: 490, 10177(b)
Oskiera, Chris John (REB)
6025 Southerness Dr., El Dorado Hills
Eective: 9/8/09
Violation: 480(c), 10177(a)(b)
Puthu, Jerey S. (RES)
1062 Eastburg Ct., Ripon
Eective: 10/21/09
Violation:
2731(a), 10159.5, 10176(a)(b)
(c), 10176(g)(i), 10177(d)(g)(j),
10240, 10241
Rodriguez, Paul Anthony (RES)
5400 Sitka Ct., Elk Grove
Eective: 9/23/09
Violation: 490, 10177(b)
Silva, Sandra E. (RES)
9355 E. Stockton Blvd. #210, Elk Grove
Eective: 9/7/09
Violation: 490, 10177(b)
Skaria, Zaki Siwan (RES)
1804 Dorset Ln., Modesto
Eective: 10/13/09
Violation: 490, 10177(b)
Smead, Dustin Wyatt (RES)
5544 Crestline Dr., Foresthill
Eective: 11/30/09
Violation: 490, 10177(b)
Stercl, Tony Oscar (RES)
3872 Chimney Rock Way, Sacramento
Eective: 11/17/09
Violation: 490, 10177(b)
Tindill, Teri Lynn (RES)
5936 Tanus Cir., Rocklin
Eective: 10/8/09
Violation: 490, 10177(b)
Walker, Ray Brian (RES)
546 Sangiovese Court, Faireld
Eective: 9/9/09
Violation: 490, 10177(b)
Wheatley, Yvonne Marie (REB)
15 Marty Cir., Roseville
Eective: 11/30/09
Violation: 490, 10177(b)
Worden, Terry Stephen (RES)
2036 Nevada City Hwy. #319, Grass Valley
Eective: 11/25/09
Violation: 490, 10177(b)
Yanez, Deanne Marie (RES)
119 Rockbolt Cir., Folsom
Eective: 11/18/09
Violation: 490, 10177(b)
SAN DIEGO REGION
Behnke, Steve M. (RES)
9776 Rimpark Way, San Diego
Eective: 11/13/09
Violation: 490, 10177(b)
Costales, Melecia Esperon (RES)
1228 Corte Bello, San Marcos
Eective: 10/30/09
Violation: 490, 10177(b)
Crawford, Shane Anthony (RES)
4611 Judson Way, Unit B, La Mesa
Eective: 9/15/09
Violation: 490, 10177(b)
Deocampo, Honorato D. (RES)
452 Newhall Dr., Corona
Eective: 11/4/09
Violation: 490, 10177(b)
Devera, James (REB)
4425 Eastgate Mall Dr., #130, San Diego
Eective: 9/15/09
Violation: 10159.2, 10177(d)(g)(h)
Frerichs, Clemens (RES)
1562 Calle Ryan, Encinitas
Eective: 11/30/09
Violation: 490, 10177(b)
Gallegos, Edwin E. (RES)
1560 San Pedro Point Ct., Chula Vista
Eective: 10/30/09
Violation: 490, 10177(b)
Gray-Medina, Robin Lynn (RES)
510 First Ave. #703, San Diego
Eective: 10/5/09
Violation: 490, 10177(b)
Herrmann, Frederick III (REB)
4455 Twain Ave. #A, San Diego
Eective: 10/30/09
Violation: 490, 10177(b)
Joyner, Gregory ames (RES)
8322 Clairemont Mesa Blvd. #106, San Diego
Eective: 10/5/09
Violation: 490, 10177(b)
Khuu, Tiany (RES)
11211 Hunter Green Ct., San Diego
Eective: 10/5/09
Violation: 490, 10177(b)
McCarter, Tony-Curtis (RES)
29250 Annadale Rd., Sun City
Eective: 9/15/09
Violation: 490, 10177(b)
McMurray, Randy Alan (RES)
879 Lehigh Ave., Chula Vista
Eective: 9/15/09
Violation: 490, 10177(b)
SPRING 2010 REAL ESTATE BULLETIN PAGE 7
MD Mortgage Group, Inc. (REC)
4435 Eastgate Mall Dr., #130,
San Diego
Eective: 9/15/09
Violation: 2831.2, 2832, 2832.1, 2834,
2835, 2950(f), 2951, 10145,
10176(e), 10177(d), 10240
Ogwo, Anthony I. (RES)
1307 West 6
th
St., Ste. 217, Corona
Eective: 9/9/09
Violation: 490, 10177(b)
Peoples First Financial, Inc. (REC)
10179 Huennekens St. #200, San Diego
Eective: 9/16/09
Violation:
2970, 2972, 10085, 10130,
10137, 10146, 10177(d)
Phung, Kieu i uy (RES)
7717 Forrestal Rd., San Diego
Eective: 9/15/09
Violation: 490, 10177(b)
Ritter, James R. (RES)
PO Box 2353, El Cajon
Eective: 10/30/09
Violation: 490, 10177(b)
Sani, Amir (REB)
10179 Huennekens St. #200, San Diego
Eective: 9/16/09
Violation: 10159.2, 10177(d)(g)(h)
Stillwell, Blaize Charles (RES)
PO Box 662, Carlsbad
Eective: 10/5/09
Violation: 490, 10177(b)
Voigt, Mark Douglas (RES)
PO Box 3602, Vista
Eective: 10/5/09
Violation: 490, 10177(b)
White, Todd Raymond (RES)
1250 Barrett Lake Rd. D 6, Dulzura
Eective: 11/12/09
Violation: 490, 10177(b)
REVOKED WITH RIGHT
TO RESTRICTED LICENSE
FRESNO REGION
Bartow, Alicia Tanya (RES)
711 12
th
St., Paso Robles
Eective: 9/1/09
Violation: 10176(a), 10177(g)
Right to RRES license on terms and
conditions
Williams, David John (REB)
2004 Dallons Dr., Ste. 100, Paso Robles
Eective: 11/2/09
Violation: 10177(g)
Right to RREB license on terms and
conditions
LOS ANGELES REGION
Ahmed, Afaq (REB, REO)
305 N. Brookhurst St., Anaheim
Eective: 9/16/09
Ocer of: Comfort Sales & Services, Inc.
Violation: 10177(g)
Right to RREB license on terms and
conditions
Arenas, Reyes (RES)
770 W. Hemlock St., Port Hueneme
Eective: 10/28/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions
Armienta, Frank Raul (RES)
1235 Kwis Ave., Hacienda Heights
Eective: 10/14/09
Violation: 475(a)(1), 480(c), 490(b),
10177(a)(b)
Right to RRES license on terms and
conditions
Arzate, Vicente R. (RES)
641 Ensign Pl., Oxnard
Eective: 9/8/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions
Bath, Samuel William (REB)
83 Vermillion, Irvine
Eective: 11/18/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions
Briscoe, Virginia Ann (RES)
2949 W. Skywood Cir., Anaheim
Eective: 10/27/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions
Bush, Stephen C. (REB)
2467 Middlesex Pl., Fullerton
Eective: 10/28/09
Violation: 490, 10177(b)
Right to RREB license on terms and
conditions
Chen, Gang (RES)
11151 Elliott Ave., El Monte
Eective: 9/1/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions
Cole, Gregory (RES)
21115 Devonshire St. #343, Chatsworth
Eective: 10/5/09
Violation: 10130, 10177(d)
Right to RRES license on terms and
conditions
Downing, Peter Michael (REB, REO)
5561 Lockhaven Dr., Buena Park
Eective: 9/14/09
Ocer of: Fidelity National Mortgage
Corporation
Violation: 10177(g)
Right to RREB license on terms and
conditions
Fidelity National Mortgage Corp. (REC)
2001 East 4
th
Street, Ste. 120, Santa Ana
Eective: 9/14/09
Violation: 10177(g)
Right to RREC license on terms and
conditions
Gellersen, Richard Allen (REB)
16300 Crenshaw Blvd., Ste. 209, Torrance
Eective: 10/27/09
Ocer of: Oretra USA, Inc.
Violation: 490, 10177(b)(h)
Right to RREB license on terms and
conditions
Lin, Yan-Liang (REB, REO)
790 e City Drive South #100, Orange
Eective: 10/15/09
Ocer of: SBL Professional Realty, Inc.
Violation: 10159.2, 10177(h)
Right to RREB license on terms and
conditions
Locsin, Maria Elena (RES)
6721 Kurl Way, Reseda
Eective: 10/5/09
Violation: 10130, 10177(d)
Right to RRES license on terms and
conditions
Moreno, Edson J. (RES)
2732 Live Oak St., Huntington Park
Eective: 11/12/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions
Perkins, James Robert (REB)
44041 Orchard Rd., Hinkley
Eective: 11/25/09
Violation:
2831, 2831.1, 2831.2, 2832.1,
10145, 10177(d)(g)
Right to RRES license on terms and
conditions
Rangel, Steven Raul (RES)
15300 Ventura Blvd. #101, Sherman Oak
s
Eective: 10/20/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions
Repstad, John David (RES)
2764 Calaris Rd., San Marino
Eective: 9/1/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions; Suspended for 60 days
Satsuta, Andrei (REB)
4454 Ventura Canyon Ave. #208, Sherman
Oaks
Eective: 11/4/09
Violation: 490, 10177(b)
Right to RREB license on terms and
conditions
SBL Professional Realty, Inc. (REC)
790 e City Drive South #100, Orange
Eective: 10/15/09
Violation: 2715, 2831, 2831.1, 2832(a),
2832.1, 2834, 2835, 10145,
10177(d)
Right to RREC license on terms and
conditions
Schwimer, Brien Steven (RES)
32126 Harborview Ln., Westlake Village
Eective: 10/7/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions
Smyth, Peter Michael (REB)
4316 Marina City Dr., Marina Del Rey
Eective: 11/12/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions
Townsend, Jane Hamburger (RES)
2810 Warner Ave., Apt. 254, Irvine
Eective: 10/28/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions
Yousri, Bassem (RES)
PO Box 8671, Northridge
Eective: 9/14/09
Violation: 10177(j)
Right to RRES license on terms and
conditions
Zheng, Mei (RES)
10140 Lynrose St., Temple City
Eective: 10/27/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions
OAKLAND REGION
Gravelle, David George (REB)
548 Silver Lake Dr., Danville
Eective: 10/5/09
Violation: 10177(d)(g)(h)
Right to RREB license on terms and
conditions
III Create, Inc. (REC)
1686 Second St., Livermore
Eective: 10/5/09
Violation: 10176(a)(c)(i)
Right to RREC license on terms and
conditions
Khan, Christopher Hamilton (REB)
605 E. Tennant Ave., Unit F, Morgan Hill
Eective: 11/15/09
Violation: 10176(i), 10177(j)
Right to RREB license on terms and
conditions
Kremer, Dustin N. (RES)
22093 Redwood Rd., Castro Valley
Eective: 11/5/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions
Sargent, Leonard Daenele (RES)
499 Jackie Dr., San Jose
Eective: 11/4/09
Violation: 490(a), 10177(b)
Right to RRES license on terms and
conditions
Schaeer, Russell Keith (REB)
4990 Forest Hill Dr., Pleasanton
Eective: 11/25/09
Violation: 10159.2
Right to RRES license on terms and
conditions
Swenson, Eric Stephen (RES)
PO Box 8553, San Jose
Eective: 10/15/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions
SACRAMENTO REGION
Art, Susan Evette (RES)
4053 Robertson Ave., Sacramento
Eective: 11/10/09
Violation: 10176(a)(i), 10177(g)(j)
Right to RRES license on terms and
conditions
Cline, Jeanette Ann (RES)
10090 Tuzza Ct., Elk Grove
Eective: 9/23/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions
Girod, Anna R. (REB)
904 S. Main St., Lakeport
Eective: 11/4/09
Violation: 2731, 2831, 2831.1, 2832,
2832.1, 10145, 10148,
10159.5, 10176(g), 10177(d)
(g)
Right to RRES license on terms and
conditions; Restricted license suspended for
60 days—30 days stayed for 4 years on terms
and conditions
Sheiring, Paul Scott (RES)
2575 Celtic Dr., Lincoln
Eective: 11/19/09
Violation: 490, 10177(b)
SAN DIEGO REGION
Cruz, Jorge Ricardo (REB)
6185 Magnolia Ave., Ste. 340, Riverside
Eective: 9/16/09
Violation: 10137, 10177(g)
Right to RREB license on terms and
conditions
Dimesa, Frederick Raymond Sr. (REB)
12900 Frederick St., Ste. D, Moreno Valley
Eective: 10/15/09
Violation: 2715, 10148, 10162, 10165,
10177(d)(g)
Right to RRES license on terms and
conditions
Dutt, Karla (RES)
11326 Vista Sorrento Pkwy. #L209, San Diego
Eective: 11/19/09
Violation: 490, 10177(b)
Madison, Carol A. (RES)
40145 Baltusrol Cir., Palm Desert
Eective: 11/9/09
Violation: 490, 10177(b)
Right to RRES license on terms and
conditions
PAGE 8 REAL ESTATE BULLETIN SPRING 2010
Vera, Ulises (RES)
694 Myra Ave., Chula Vista
Eective: 11/30/09
Violation: 2970, 10085, 10130, 10146,
10177(d)
Right to RRES license on terms and
conditions
SUSPENDED
LOS ANGELES REGION
Minassian, Ronald (REB, REO)
411 N. Central Ave., #100, Glendale
Eective: 10/16/09
Ocer of: U S Capital Funding
Corporation
Violation: 2831, 2831.1, 2831.2,
2832(d), 2840, 10145,
10159.2, 10177(d)(h), 10240
Suspended for 30 days
Shaboul, Arthur Joseph (REB, REO)
411 N. Central Ave. #100, Glendale
Eective: 11/20/09
Ocer of: US Capital Funding
Corporation
Violation: 2831, 2831.1, 2831.2,
2832(d), 2840, 10145,
10159.2, 10177(d)(h), 10240
Suspended for 30 days
U S Capital Funding Corporation (REC)
12441 Nedra Dr., Granada Hills
Eective: 10/16/09
Violation: 2831, 2831.1, 2831.2,
2832(d), 2840, 10145,
10177(d), 10240
Suspended for 30 days
OAKLAND REGION
Foppiano, Peter Carl (REB)
16001 Healdsburg Ave., Healdsburg
Eective: 11/23/09
Violation: 2725, 2726, 10137,
10161.8(a), 10176(i),
10177(d)(h), 10178, 10240
Suspended for 30 days
Gonzales, Gerald Steven (RES)
565 Clark St., Crockett
Eective: 11/12/09
Violation: 10177(g)
Suspended for 30 days
SUSPENDED WITH STAY
FRESNO REGION
Bor, Joan Marie (REB)
16439 Curtis Trail, Frazier Park
Eective: 9/9/09
Violation: 2831, 2831.1, 2831.2, 2832,
2905, 2950(f), 10145, 10148,
10177(d), 10240
Suspended for 60 days—30 days stayed for 2
years on terms and conditions
RCA Properties, Inc. (REC)
711 12
th
St., Paso Robles
Eective: 9/1/09
Violation: 10176(a), 10177(g)
Suspended for 60 days—stayed for 2 years on
terms and conditions
Williams, Elissa K. (REB)
711 12
th
St., Paso Robles
Eective: 9/1/09
Violation: 10176(a), 10177(g)
Suspended for 60 days—stayed for 2 years on
terms and conditions
LOS ANGELES REGION
Brown, Patricia Gail (REB)
56100 29 Palms Hwy., Yucca Valley
Eective: 11/6/09
Violation: 2831, 2831.1, 2831.2, 10145,
10177(d), 10232.2(c), 10240
Suspended for 90 days—45 days stayed for 2
years on terms and conditions
Capital Direct Lending Corporation (REC)
3 San Joaquin Plaza, Ste. 250, Newport Beach
Eective: 10/16/09
Violation: 2731, 2840, 10159.5,
10177(d)(g), 10236.4, 10240
Suspended for 60 days—stayed for 2 years on
terms and conditions
Gateway Funding Corporation (REC)
25255 Cabot Rd. #208, Laguna Hills
Eective: 11/20/09
Violation: 2832.1, 2834, 2840, 2950(h),
10145, 10177(d)(g), 10240
Suspended for 60 days—30 days stayed for 2
years on terms and conditions
Gomez, David William (REB)
621 W. Beverly Blvd., Montebello
Eective: 11/25/09
Violation: 2831, 2831.1, 2840, 10145,
10176(g), 10177(d)(g),
10240, 10236.4
Suspended for 60 days—30 days stayed for 2
years on terms and conditions
Hernandez, Francisco Guillermo (REB, REO)
8141 East 2
nd
St., Ste. 620, Downey
Eective: 10/30/09
Ocer of: Tristar Realty & Investments,
Inc.
Violation: 2831, 10145, 10177(g)
Suspended for 60 days—stayed for 2 years on
terms and conditions
Hulbert, Michael (REB, REO)
3 San Joaquin Plaza, Ste. 250, Newport Beach
Eective: 10/16/09
Ocer of: Capital Direct Lending
Corporation
Violation: 2731, 2840, 10159.5,
10177(d)(g), 10236.4, 10240
Suspended for 60 days—stayed for 2 years on
terms and conditions
Hwang, Simon Jaeyeun (REB)
116 Soco Dr., Fullerton
Eective: 9/23/09
Violation: 10130, 10131.1(c), 10177(d)
(g)(h), 10240(c)
Juniper, David Allen (REB, REO)
26250 Enterprise Ct. #230, Lake Forest
Eective: 11/2/09
Ocer of: Capital Home Corporation
Violation: 10177(g)
Suspended for 120 days—70 days stayed for 2
years on terms and conditions
Lewis, Stuart Gwynn (REB)
1240 Yale St. #229, Santa Monica
Eective: 9/9/09
Violation: 10130, 10177(d)
Suspended for 30 days—stayed for 1 year on
terms and conditions
New Century Pacicom, Inc. (REC)
8320 Florence Ave., Downey
Eective: 10/14/09
Violation: 2726, 2731, 2831.2, 2832.1,
2832(d), 2834, 2840, 2840.1,
2950(d)(g)(h), 2951, 10145,
10159.5, 10177(g), 10240
Suspended for 90 days—stayed for 2 years on
terms and conditions
Ogami, Tsuneo (REB, REO)
8320 Florence Ave., Downey
Eective: 10/14/09
Ocer of: New Century Pacicom, Inc.
Violation:
2726, 2731, 2831.1, 2832.2,
2832(d), 2834, 2840, 2840.1,
2950(d)(g)(h), 2951, 10145,
10159.5, 10177(g), 10240
Suspended for 90 days—stayed for 2 years on
terms and conditions
Osorno, Bertha Margarita (RES)
2515 E. Chestnut Ave., Orange
Eective: 9/17/09
Violation: 10130, 10177(d)
Suspended for 45 days—25 days stayed for
one year on terms and conditions
Pellizzon, Paul Anthony (REB, REO)
25255 Cabot Rd. #208, Laguna Hills
Eective: 11/20/09
Ocer of: Gateway Funding Corp.
Violation:
2832.1, 2834, 2840, 2950(h),
10145, 10177(d)(g), 10240
Suspended for 60 days—stayed for 2 years on
terms and conditions
Reed, Paul Henry (REB)
2855 E. Coast Hwy., Ste. A, Corona Del Mar
Eective: 11/16/09
Violation: 2715, 10148, 10162, 10177(d)
Suspended for 60 days—30 days stayed for 2
years on terms and conditions
Sauder Real Estate, Inc. (REC)
940 W. Foothill Blvd., Claremont
Eective: 10/19/09
Violation: 10177(g)
Suspended for 90 days—60 days stayed for 2
years on terms and conditions
Sauder-Ruest, Nanci J. (REB, REO)
940 W. Foothill Blvd., Claremont
Eective: 10/19/09
Ocer of: Sauder Real Estate, Inc.
Violation: 10177(g)
Suspended for 90 days—60 days stayed for 2
years on terms and conditions
Spear, John B. (REB, REO)
1940 Orange Tree Lane, Redlands
Eective: 9/14/09
Ocer of: Fidelity National Mortgage
Corporation
Violation: 10177(g)
Suspended for 60 days—30 days stayed for 2
years on terms and conditions
Yalnezian, Paul B. (REB, REO)
827 E. Colorado St., Glendale
Eective: 9/9/09
Ocer of: Equity Income
Violation: 2832, 2832.1, 2950, 10145,
10159.5, 10160, 10161.8,
10177(d)(g)
Suspended for 60 days—30 days stayed for 2
years on terms and conditions
OAKLAND REGION
Brooks, Judith (REB)
2920 Woodside Rd., Woodside
Eective: 9/15/09
Violation: 10177(h)
Suspended for 30 days—stayed for one year
on terms and conditions
Isola, Albert John (REB)
4049 First St., Ste. 141, Livermore
Eective: 9/14/09
Violation: 2831, 2832(d), 10177(d)(h),
10240
Suspended for 60 days—stayed for 2 years on
terms and conditions
Litewater, Inc. (REC)
20480 Blauer Dr., Ste. C, Saratoga
Eective: 9/15/09
Violation: 10137, 10177(d)
Suspended for 30 days—stayed for one year
on terms and conditions
Mayr, Lin W. (REB)
655 W. Evelyn Ave., Ste. 9, Mountain View
Eective: 11/30/09
Violation: 2725, 10159.2, 10177(d)
Suspended for 60 days—stayed for 2 years on
terms and conditions
Prime Vest Realty (REC)
1600 Los Gamos Dr., Ste. 345, San Rafael
Eective: 11/19/09
Violation: 10177(d), 11018.1, 11018.2
Suspended for 20 days—stayed for 2 years on
terms and conditions
SACRAMENTO REGION
Johnson, Louise Ellen (REB)
778 East Ave., Chico
Eective: 9/9/09
Violation: 2831, 2831.2, 2832.1, 10145,
10148, 10177(d)
Suspended for 60 days—stayed for 2 years on
terms and conditions
SAN DIEGO REGION
Pyeatt, Lester L. (REB)
631 14
th
Street, Poway
Eective: 10/26/09
Ocer of: Airway Lending, Inc.
Violation: 10148, 10159.2
Suspended for 90 days—60 days stayed for 2
years on terms and conditions
Robe, Michael Wesley (RES)
810 Jamacha Rd., Ste. 101, El Cajon
Eective: 9/15/09
Violation: 10177(g)
Suspended for 30 days—stayed for 2 years on
terms and conditions
Vaca, Eric William (REB)
1525 Kettner Blvd., San Diego
Eective: 10/6/09
Violation:
2731, 2847.3, 2848(2), 2848(4),
2848(6), 2848(12), 2848(16),
2848(17), 2848(18), 10159.2,
10159.5, 10177(d), 10235,
14702, 17533.6
Suspended for 50 days—stayed for 2 years on
terms and conditions
LICENSE SURRENDERED
LOS ANGELES REGION
Canyon Capital Funding Corp. (REC)
151 Yorba, Tustin
Eective: 9/21/09
Capital Home Corporation (REC)
30021 Tomas St., Ste. 300,
Rancho Santa Margarita
Eective: 11/2/09
Cirson, Eugene (REB)
5281 Dartmouth Ave., Westminster
Eective: 9/2/09
Gano, James Stephen Jr. (RES)
PO Box 3705, San Dimas
Eective: 11/16/09
Grimes, James Wray (REB, REO)
30112 Pixie, Running Springs
Eective: 11/16/09
Ocer of:
Foshees High Country, Inc
.
Loan Processing Center, Inc. (REC)
5440 Trabuco Rd., Ste. 200, Irvine
Eective: 9/21/09
McMillen, Kelly Jo (RES)
4333 Inez Ave., Yucca Valley
Eective: 9/23/09
Nuell, Gary (RES)
843 Euclid St. #105, Santa Monica
Eective: 11/1709
Sarpas, Hakimullah (RES)
17267 Santa Lucia St., Fountain Valley
Eective: 10/28/09
Worldwide Brokers, Inc. (REC)
3541 Van Wig Ave., Baldwin Park
Eective: 9/15/09
SPRING 2010 REAL ESTATE BULLETIN PAGE 9
Continued on page 10
OAKLAND REGION
Constantino, David Michael (REB)
1650 Borel Pl., Ste. 214, San Mateo
Eective: 11/12/09
Gorman & Mayr, Inc. (REC)
811 Washington St., Oakland
Eective: 11/30/09
SACRAMENTO REGION
Miller, Joan Arlene (REB)
2525 Lafayette Dr., Davis
Eective: 9/23/09
Stevenson, Mark B. (RES)
12851 Powerhouse Rd., PO Box 455, Potter
Valley
Eective: 10/28/09
SAN DIEGO REGION
American Premier Funding, Inc. (REC)
6150 Mission Gorge Rd., Ste. 140,
San Diego
Eective: 10/6/09
Comfort Sales & Services, Inc. (REC)
268 N. Lincoln Ave. #9B, Corona
Eective: 9/16/09
Cortez, Brenda (RES)
29481 Camino Cristal, Menifee
Eective: 9/2/09
Malik, Azher (RES)
505 C L Fleming Cir., Corona
Eective: 9/16/09
Weimortz, Joseph Alexander Sr. (REB)
9312 Twin Mountain Cir., San Diego
Eective: 9/2/09
Zollinger, Tyler Brent (RES)
17037 Silvercrest Dr., San Diego
Eective: 11/20/09
PUBLIC REPROVAL
LOS ANGELES REGION
Alvidrez, Guadalupe (REB, REO)
3541 Van Wig Ave., Baldwin Park
Eective: 9/15/09
Ocer of: Worldwide Brokers, Inc.
Violation: 10177(g)
Ghaemi, Mohammad (REB)
2081 Business Center Dr., Ste. 175, Irvine
Eective: 9/23/09
Violation: 2970, 2972, 10146, 10177(d)
OAKLAND REGION
Gates, Scott John (RES)
235 Posada Del Sol, Novato
Eective: 11/19/09
Violation: 11077(d), 11018.1, 11018.2
Hevia, Nancy Lee (REB)
21 Castle Rock Dr., Mill Valley
Eective: 11/19/09
Violation: 10177(d), 11018.1, 11018.2
Larsen, Glenn Harvey (REB)
300 Drakes Landing Rd., Ste. 155, Greenbrae
Eective: 11/19/09
Violation: 10177(d), 11018.1, 11018.2
Massoumi-Madjlessi, Biganeh Lily (REB)
1100 Larkspur Landing Cir. #300, Larkspur
Eective: 11/19/09
Violation: 10177(d), 11018.1, 11018.2
McLaughlin, Jack (REB)
47-E Tamal Vista, Corte Madera
Eective: 11/19/09
Violation: 10177(d), 11018.1, 11018.2
McLaughlin, Pamela (REB)
998 Magnolia Ave., Larkspur
Eective: 11/19/09
Violation: 10177(d), 11018.1, 11018.2
O’Mohundro, Karyn Sue (REB)
12772 Saratoga-Sunnyvale Rd., Saratoga
Eective: 11/19/09
Violation: 10177(d), 11018.1, 11018.2
Pacic Union Real Estate Group, Ltd. (REC)
One Letterman Dr. Bldg. C Ste. 300, San
Francisco
Eective: 11/19/09
Violation: 10177(d), 11018.1, 11018.2
S I R E Enterprises, Ltd. (REC)
235 Posada Del Sol, Novato
Eective: 11/19/09
Violation:
10177(d), 11018.1, 11018.2
Scarpa, Steven Joseph (REB)
235 Posada Del Sol, Novato
Eective: 11/19/09
Violation: 10177(d), 11018.1, 11018.2
Schaefer, Sandra K. (REB)
663 2
nd
St. East, Sonoma
Eective: 11/19/09
Violation: 10177(d), 11018.1, 11018.2
Zarkoub, Afshin (REB)
817 Vega Cir., Foster City
Eective: 11/19/09
Violation: 10177(d), 11018.1, 11018.2
SAN DIEGO REGION
Alkire, Richard Leonard (REB, REO)
24947 Truman Place, Murrieta
Eective: 9/29/09
Ocer of: Trinity Financial, Inc.
Violation: 2832(a), 10177(d)(g)
Trinity Financial, Inc. (REC)
41707 Winchester Rd. #301, Temecula
Eective: 9/29/09
Violation:
2832(a), 10145, 10177(d)(g)
INDEFINITE
SUSPENSIONS
(under Recovery Acct provisions)
LOS ANGELES REGION
J P Capital Markets, Inc. (REC)
626 20
th
St., Huntington Beach
Eective: 09/08/09
Oganesyan, Elita (REB)
12107 Gerald Ave., Granada Hills
Eective: 09/01/09
Stevens, Freddie Jr., (REB)
P.O. Box 5605, Long Beach
Eective: 09/01/09
OAKLAND REGION
Bercovich, Cliord D.(REB)
P.O. Box 102, Kenteld
Eective: 10/07/09
Guiten, Zandra Dee (REB)
580 Grand Ave. #J, Oakland
Eective: 10/5/09
SACRAMENTO REGION
Dore, Mary Avora (REB)
1406 Stonehollow, #600, Kingwood TX
Eective: 09/01/09
SAN DIEGO REGION
Beard, Jeremy F. (REB)
601 E. Palomar St., #C253, Chula Vista
Eective: 09/04/09
Gordin , Scott Edward (REB)
1451 S. Rimpau Ave., #214, Corona
Eective: 09/01/09
Schmidt, Jack Anthony (RES)
1386 Tremella Ct., Beaumont
Eective: 09/04/09
sign of fraud. Such undisclosed payments are likely illegal.
e economic substance of and all payments in the short sale
transaction should be disclosed on the HUD 1 statement.
ere should never be dual or multiple contracts, only one of
which shows the true purchase price.
Added Twist re: Payments Outside of Escrow – some short
sale listing contracts have a provision in an addendum for
payments outside of escrow for some amount of money
(usually $1,000 up to 1 percent of the sales price) to a third
party short sale negotiator, processor, or facilitator, for some
unknown or unspecied service. e money is sometimes to
be paid by the seller, and other times by the buyer. ese may
be payments to a confederate of the real estate broker, some
aliate of the broker, and/or an unlicensed short sale entity. It
is not known from a review of the addendum whether these
fees are paid for a real service, or whether they are “junk” fees
paid to increase the monies payable to the real estate licensee.
If they are paid for a legitimate purpose, they must be disclosed
to all parties to the transaction, including the senior Lender. If
they are “junk” fees, or fees paid to an unlicensed entity, they
are problematic from a legal perspective.
All such payments may violate RESPA, the Real Estate Law,
and other federal and/or State laws.
2. Sometimes the End or Retail Buyer is the Only One Putting Money
into the Short Sale Transaction.
Here the end buyer’s money is used to close the transaction,
without any or proper disclosure.
3. e Ownership of the Underwater Property is Transferred to Some
Sort of Trust.
is may be done to keep the chain of title intact and to hide
the true owner of the property. In many cases, the homeowner
seller is listed as the beneciary of the trust.
4. Additional ings to Consider (A Word to the Wise):
(a) Your duciary duties are to your principal(s), which cannot be
signed away. e duties include honesty, loyalty, condentiality,
full disclosure of all material and relevant facts, skill, care, and
diligence, and placing your client’s interests ahead of yours.
For a more complete discussion of duciary duties that are
imposed on California real estate licensees, please see DRE’s
Real Estate Bulletin of Summer 2007.
If you are the listing agent, you have a number of duciary
duties to the seller imposed on you. You certainly cannot
delegate your real estate license and duciary duties to an
unlicensed third party who shuts you o from communication
with the short sale Lender.
Dual Agency Considerations: Consider also if you are an agent
of the third party investor/short sale facilitator. You may have
a dual agency situation which raises a whole host of issues. If
you are a dual agent, you may have an irrevocable conict that
a dual agency disclosure cannot remedy.
By getting the best price for the rst buyer/investor, you most
assuredly cannot get the best sales price for the seller. If you
have listed the home for the seller, your duty should run to that
seller. How can it also run to the third party?
(b) Your legal obligations under the California real estate law
regarding disclosures, including agency relationships, and the
prohibitions against fraud and secret prots.
(c) Real estate licensees wishing to collect an advance fee in
Short Sales Continued from page 3
PAGE 10 REAL ESTATE BULLETIN SPRING 2010
Golf course disclosures
Residents of homes located adjacent to or
near a golf course may enjoy the benet of
the enhanced value of their residences as well
as favorable views. However, the proximity
of a golf course can also produce negative
impacts on adjacent homes, which may result
in disputes. is article will address some of
the issues that a developer or a real estate agent
may wish to disclose to purchasers in a project
aected by a golf course.
ese disclosures may apply whether the
golf course is privately owned, controlled by
the developer, or is part of the homeowners'
association’s common area. If applicable,
the disclosures may be made in a Transfer
Disclosure Statement, Subdivision Public
Report, and if a more detailed disclosure that
provides an explanation unique to the property,
a separate document is appropriate. Some
suggestions for disclosures may include:
Stray golf balls – Any resident near a golf
course may be aected by errant golf balls,
resulting in personal injury or destruction to
property. Golfers may attempt to trespass on
adjacent property to retrieve golf balls even
though the project restrictions may expressly
prohibit such retrieval.
Noise and lighting – e noise of lawn
mowers and utility vehicles may create
disturbances to homeowners. Maintenance
operations may occur in the early morning
hours. Residents living near the clubhouse may
be aected by extra lighting, noise, and trac.
Pesticides and fertilizer use – A golf course
may be heavily fertilized, as well as subjected to
other chemicals during certain periods of the
year.
Irrigation system – Golf course sprinkler
systems may cause water overspray upon
adjacent property and structures. Also the
irrigation system of a golf course may use
reclaimed and retreated wastewater.
Golf carts – Certain lots may be aected
more than others by the use of golf carts. Lots
adjacent to a tee or putting green may be subject
to noise disturbances and loss of privacy.
Access to golf course from residences – It is
likely that most residences will not have direct
access from their lots to the golf course. e
project restrictions may disclaim any right of
access or other easements from a resident’s lot
onto the golf course.
View obstruction – Residents living near
a golf course may have their views over the
golf course impacted by maturing trees and
landscaping or by changes to the course’s
conguration.
connection with performing short sales must rst submit an advance fee contract
to the DRE for review and then receive from the DRE the issuance of a no-objection
letter relative to that contract. All advance fees collected thereaer under the terms of
that contract must be placed in a trust account and handled as client trust funds under
the California Real Estate Law and regulations of the Real Estate Commissioner.
(d) By entering into an agreement with a person who is engaged in mortgage fraud (even
unwittingly or innocently), you can be held liable both civilly and criminally, and may
be the subject of administrative discipline by the DRE.
(e) RESPA’s anti-kickback and unearned fee provisions. e U.S. Department of Housing
and Urban Development has many informative materials on RESPA and the
prohibitions against giving or receiving any fee, kickback, or any thing of value for
the referral of settlement service business.
(f) By participating in a short sale fraud, with articially deated oers for the short
sale property, you may be defrauding the new lender on the retail sale – in addition
to the fraud committed against the short sale Lender. In a typical simultaneous sale
transaction, a property is stated as having two dierent values to two separate lenders –
the short sale Lender, and the new retail lender. While one of the values may represent
a “distressed” property value, and the other a “non-distressed” property value, an
issue regarding fraud is presented.
(g) ere is potential harm to the short sale home seller. In addition to not obtaining
the highest price for the seller, which is or may be a violation of the law and or your
duciary duty, the Lender may still require the seller (the original borrower) to pay o
the remaining debt. In this case, there is no debt forgiveness. Even where the holder
of the rst lien allows for debt forgiveness, the holder of the second or subordinate
liens might not forgive that debt. A deciency judgment may then be pursued and
obtained by the lien holder(s) for the deciency. Moreover, the greater the debt
forgiveness, the greater the potential tax liability. While the federal government has
imposed a freeze on taxing the forgiven amount, State tax law may not do the same.
us, if the short sale property is sold for the most amount of money that the market
will bear, the potential tax consequence to the seller is diminished. Conversely, by
accepting an articially deated oer, the seller’s potential tax liability is increased.
III. Conclusion
Real estate and mortgage fraud hurts everyone. ose who engage in short sale ipping
fraud through the use of misrepresented valuations and/or manipulated prices make prots
at the expense of lenders, which oen times means at the expense of taxpayers. is takes
money out of the system that is designed to assist home owners and lenders. Furthermore, it
manipulates the value of the real estate market, harms communities, innocent buyers, sellers,
and lenders, and may ultimately scare o lenders from doing short sales, or from lending to
purchasers of short sale properties.
While this publication addresses one particular type of short sale ipping transaction,
and some varying related and other scenarios, California real estate licensees would be well-
advised to be completely transparent and to fully disclose, and document the disclosure of,
all material information, side-deals, and concurrent and related transactions to all parties to
short sale transactions, including, without limitation, all involved third party participants
and payments.
Licensees would also be wise to advise their clients to contact and consult with a qualied
attorney or tax professional regarding the potential tax consequences of a short sale
transaction.
Further, if you are considering engaging in short sale transactions, you should fully
educate yourself about the mechanics of the process and the related legal and ethical issues,
and work only with legitimate professionals.
Finally, if you become aware of information about fraudulent short sale activity, please
contact the DRE’s Enforcement section in Sacramento or at the oce closest to you, or via
the Internet at http://www.dre.ca.gov/cons_complaint.html. In addition, you may want to
contact the California Attorney General’s Oce, the U.S. Department of Housing and Urban
Development, and the Federal Bureau of Investigation.
Short Sales Continued from page 9
SPRING 2010 REAL ESTATE BULLETIN PAGE 11
Financial Code Section 17403.4
– License Disclosure Required
of Person Preparing Written
Instructions
is Financial Code Section requires
that “All written escrow instructions
and all escrow instructions transmitted
electronically over the Internet executed
by a buyer or seller, whether prepared by
a person subject to this division or by a
person exempt from this division under
Section 17006, shall contain a statement
in not less than 10-point type which shall
include the license name and the name
of the department issuing the license
or authority under which the person is
operating...”.
Business and Professions Code
Section 10086 (a) – Engaging
in Prohibited Activity – Order
to Desist and Refrain
“If the commissioner determines through
an investigation that … a real estate
broker has engaged in or is engaging in an
activity which is a violation of a provision
of Division 6 (commencing with Section
17000) of the Financial Code, and which
is not exempt pursuant to paragraph (4)
of subdivision (a) of Section 17006, the
commissioner may direct the person to
desist and refrain from such activity by
issuance an order specifying the nature
of the activity and the factual and legal
basis for his or her determination. e
respondent to whom the order is directed
shall immediately, upon receipt of the
order, cease the activity described in the
order”.
Real estate brokers and salespersons
received trust funds in the normal
course of doing business. ey received
these funds on behalf of others, thereby
creating a duciary responsibility to the
owners of the funds. e brokers and
salespersons must handle, control, and
account for the trust funds according to
the requirements of the Real Estate Laws
and the Commissioner’s Regulations.
Improper handling of trust funds is a
cause for disciplinary action.
e Audit Section of the Department
of Real Estate has encountered numerous
broker escrow operations with inadequate
record keeping and mishandling of escrow
trust funds. In many cases, the audit
reveals a trust fund shortage in the escrow
trust account. Most shortages are due to
overdrawn escrow balances, unauthorized
disbursements/conversion of trust funds
and bank service charges.
When handling escrows under the
exemption of the Financial Code Section
17006 (a)(4), a real estate broker is required
to follow the requirements of trust funds
handling in accordance with the Business
and Professions Code Section 10145 and
the Commissioner’s Regulations 2830.1,
2831, 2831.1, 2831.2, 2832, 2832.1, 2834,
2835, and 2951.
When handling escrows, a real estate
broker must ensure that the escrow receipts
and disbursements are handled and
accounted for properly, and they should
be disclosed in the escrow instructions
and the nal closing statement accordingly.
All escrow disbursements should be made
according to the written authorization of
the party or parties to the transaction. e
nal closing statement includes the amount
of escrow receipts and disbursements and
it should include the name of the person to
whom the escrow disbursement is made.
Furthermore, Commissioner’s
Regulation 2950 stipulates that the
following acts in the handling of an escrow
by a real estate broker exempt from the
provisions of the Escrow Law (by Section
17006(a)(4) of the Financial Code) are
prohibited and may be considered grounds
for disciplinary action:
(a) Soliciting or accepting an escrow
instruction (or amended or
supplemental escrow instruction)
containing any blank to be lled in
aer signing or initialing of such
escrow instruction (or amended or
supplemental escrow instructions).
(b) Permitting any person to make any
addition to, deletion from, or alteration
of an escrow instruction (or amended
or supplemental escrow instruction)
received by such licensee, unless
such addition, deletion or alteration
is signed or initialed by all persons
who had signed or initialed such
escrow instruction (or amended or
supplemental escrow instruction) prior
to such addition, deletion or alteration.
(c) Failing to deliver at the time of
execution of any escrow instruction
or amended or supplemental escrow
instruction a copy thereof to all persons
executing the same.
(d) Failing to maintain books, records and
accounts in accordance with accepted
principles of accounting and good
business practice.
(e) Failing to maintain the oce, place of
books, records, accounts, safes, les
and papers relating to such escrows
freely accessible and available for audit,
inspection and examination by the
commissioner.
(f) Failing to deposit all money received
as an escrow agent and as part of an
escrow transaction in a bank, trust
account, or escrow account on or
before the close of the next full working
day aer receipt thereof.
(g) Withdrawing or paying out any money
deposited in such trustee account or
escrow account without the written
instruction of the party or parties
paying the money into escrow.
(h) Failing to advise all parties in writing
if he has knowledge that any licensee
acting as such in the transaction has
any interest as a stockholder, ocer,
partner or owner of the agency holding
the escrow.
(i) Failing upon closing of an escrow
transaction to render to each principal
in the transaction a written statement of
all receipts and disbursements together
with the name of the person to whom
any such disbursement is made.
(j) Delivering or recording any instrument
which purportedly transfers a party’s
title or interest in or to real property
without rst obtaining the written
consent of that party to the delivery or
recording.
Lastly, concerning broker supervision,
a real estate broker or an ocer designated
by a corporate broker licensee shall
be responsible for the supervision and
control of the activities conducted by
his or her employees and salespersons.
Reasonable supervision includes, as
appropriate, the establishment of policies,
rules, procedures and systems to review,
oversee, inspect and manage as required
by the Commissioner’s Regulation 2725
and B&P Code Section 10159.2. When
operating an escrow division, real estate
brokers should exercise caution to ensure
that they comply with all applicable
provisions of the Real Estate Law and the
Financial Code.
Golf course disclosures When Broker Handles Escrow Continued from page 1
PAGE 12 REAL ESTATE BULLETIN SPRING 2010
SPRING 2010
INSIDE THIS ISSUE:
Commissioner's Message
Short Sales -- An Overview
and Warning to Licensees
re: Fraud, Legal and Ethical
Minefields
When Broker Handles
Escrow
Golf Course Disclosures
DEPARTMENT OF REAL ESTATE—PRINCIPAL OFFICE
We’re located at: 2201 Broadway, Sacramento, 95818-2500
Mailing Address: P.O. Box 187000, Sacramento, 95818-7000
Primary Telephone Numbers
Consumer Information
...........................................................916-227-0864
Mortgage Loan Activities
........................................................916-227-0770
General Licensing Information
..............................................877-373-4542
Examinations
............................................................................877-373-4542
CALIFORNIA RELAY TELEPHONE SERVICE
(For the deaf and hearing impaired)
From TDD phone
.................................................................1-800-735-2929
From voice phone
.................................................................1-800-735-2922
Commissioner's Message Continued from page 1
Ocial Publication
CALIFORNIA DEPARTMENT OF REAL ESTATE
P.O. Box 187000
Sacramento, California 95818-7000
Real Estate Bulletin
higher price, the buyer/investor
will not close the transaction with
the lender and simply walk away.
While there are many variations on
the theme, the one constant is the
lack of transparency by licensees
involved in facilitating these scams.
ere is no doubt in some cases
this lack of transparency could lead
to license disciplinary action.
In this edition of the bulletin, you
will nd an excellent discussion of
the potential perils of short sales
and how these perils may aect a
licensee. In addition, the DRE has
posted a Consumer Alert on short
sales with key information for
sellers considering a short sale. e
alert can be found at: http://www.
dre.ca.gov/cons_alerts.html.
As the market and economic
environment changes, so will
the schemes that take advantage
consumers and harm the industry.
Just as the Department shied
focus and resources to address
loan modication scams, the
Department will do so again to
combat the emerging scams such
as short sale ipping that take
advantage of market aberrations.
e Department intends to drum
out of the business those who
look to take advantage of others
and breach their legal and ethical
duties. Licensees who approach
the ever changing market with
honesty and integrity and do what
is right by all those involved in the
transaction will continue to thrive
as the market recovers.
