Historical Derivations +9California · Real Estate · English

A freehold estate could be an estate in fee or a life estate. An estate in fee simple absolute is the largest estate recognized by law, with the owner controlling disposition including the right to will it. A fee estate may become qualified by a condition (fee simple defeasible), allowing the grantor to reenter and terminate if the condition is breached. A life estate lasts for the life of the grantee or another named person.

• ✓Fee simple absolute is the largest estate recognized by law
• ✓Fee simple defeasible can be terminated if a condition is violated
• ✓A life estate is a freehold because its duration is not fixed in temporal terms

Under English Common Law, property referred not to the thing owned but to the rights the owner possessed: to possess, use, encumber, transfer, and exclude others. This 'bundle of rights' concept applies to both real and personal property and remains foundational to understanding ownership.

• ✓Property historically meant the RIGHTS in a thing, not the thing itself
• ✓The bundle of rights includes: possess, use, encumber, transfer, and exclude others

In feudal England, an estate was the ownership interest a person had in land. A freehold estate was of indefinite duration and not subject to servile incidents of the overlord; only freehold owners could bring a real action, so only freeholds were real property. A less-than-freehold estate was of specified duration.

• ✓A freehold estate is of indefinite duration and is real property
• ✓A less-than-freehold estate is of specified duration
• ✓Only owners of freehold estates could bring a real action

Less-than-freehold estates are the rights of tenants who rent or lease real property. These leasehold estates are classified as personal property, not real property.

• ✓Leasehold/rental estates are less-than-freehold estates
• ✓Less-than-freehold estates are classified as personal property

In English Common Law, property referred to the rights the owner held rather than the thing itself. These rights formed a 'bundle of rights' including the right to possess, use, encumber, transfer, and exclude others, applicable to both real and personal property.

• ✓Property historically meant the rights the owner had, not the thing owned
• ✓The bundle of rights includes: possess, use, encumber, transfer, and exclude others

Early English courts distinguished lawsuits where an ousted landowner could recover the land itself ('real action' = real property) from those where the owner could recover only monetary damages ('personal' = personal property).

• ✓A 'real action' allowed recovery of the actual land, the 'real property'
• ✓An action for monetary damages was 'personal,' creating the concept of 'personal property'

Early English courts distinguished lawsuits. A 'real action' allowed recovery of the land itself (the real thing/real property). A 'personal action' allowed only monetary damages, and that limited interest was labeled 'personal property.'

• ✓A real action allowed recovery of the land itself, hence 'real property'
• ✓A personal action allowed only monetary damages, hence 'personal property'

All real estate licensees, whether REALTORS or not, are under the jurisdiction of the California Department of Real Estate (DRE), which was founded as the nation's first state real estate licensing agency in 1917.

• ✓The California DRE was the nation's first state real estate licensing agency
• ✓The DRE was founded in 1917
• ✓All real estate licensees, REALTOR or not, are under DRE jurisdiction

Real estate trade organizations evolved from unorganized competition in the 1800s. The National Association of Real Estate Associations/Boards was formed in 1908 by unification of local units. It officially changed its name to the NATIONAL ASSOCIATION OF REALTORS (NAR) on January 1, 1974. CREA (now CAR) and the Los Angeles Real Estate Association were among original founding members.

• ✓The National Association of Real Estate Associations/Boards was formed in 1908
• ✓The organization changed its name to NATIONAL ASSOCIATION OF REALTORS (NAR) on January 1, 1974
• ✓All members of an Association/Board of REALTORS commit to adhere to the N.A.R. Code of Ethics

California was admitted to the Union September 9, 1850, and one of the Legislature's first acts was adopting a recording system to collect and maintain evidence of title in a convenient, safe public place. The system informs prospective purchasers and lenders about ownership and condition of title, protects innocent parties against secret sales and undisclosed encumbrances, and keeps title freely transferable.

• ✓California uses a 'Race Recording' / 'Race-Notice Recording' statute modeled after the original American Colonies
• ✓The purpose of recording is to impart constructive notice and allow title to be freely transferable
• ✓The system protects innocent lenders and purchasers against secret transfers and undisclosed liens

Actual notice consists of express information of a fact. Constructive notice is notice given by the public records; people are presumed to know the contents of recorded instruments. Recording an instrument imparts constructive notice from the time it is filed for record (Civil Code Section 2934).

• ✓Actual notice = express information of a fact
• ✓Constructive notice = notice presumed from public records once recorded
• ✓Recorded instruments impart constructive notice to all persons from the time filed

After being acknowledged (executed before a Notary Public or properly witnessed), any instrument or judgment affecting title to or possession of real property may be recorded. An 'instrument' means a written paper signed by a person transferring title, giving a lien, or giving a right to a debt or duty (Gov. Code 27279(a)).

• ✓An instrument must be acknowledged (notarized) or properly witnessed before recording
• ✓'Instrument' includes deeds, mortgages, leases, land contracts, deeds of trust, and agreements among owners
• ✓See Government Code Sections 27201, 27201.5, 27287, 27288

Recording statutes permit (rather than require) recordation of instruments affecting title, and penalize those who fail to take advantage of recording. Some laws make recording a predicate to a public policy objective (e.g., Civil Code 2932.5 requires assignment be acknowledged and recorded for assignee to exercise power of sale).

• ✓Recording is generally permitted, not required
• ✓Failure to record may result in loss of priority
• ✓Civil Code 2932.5 requires a duly acknowledged and recorded assignment for an assignee to exercise a power of sale

A bilateral contract exchanges a promise for a promise. A unilateral contract exchanges a promise for actual performance; the second party is not bound to act, but if they act, the promisor must keep the promise.

• ✓Bilateral: promise given in exchange for a promise
• ✓Unilateral: promise given to induce actual performance (e.g., reward for returning lost dog)
• ✓In unilateral contracts, the second party is not obligated to act

A void agreement is no contract at all and lacks legal effect (e.g., agreement to commit a crime; minor under 18 contracting for real property). A voidable contract is valid on its face but may be rejected by one or more parties (e.g., minor's contract, fraud victim). An unenforceable contract is valid but cannot be proved or sued upon (e.g., barred by statute of limitations). A valid contract is binding and enforceable with all essential elements.

• ✓Void: no legal effect at all
• ✓Voidable: valid on face but may be rejected by a party
• ✓Unenforceable: valid but cannot be proved or sued upon
• ✓Valid: binding with all essential elements

A contract is an agreement between two or more persons consisting of a promise or mutual promises which the law will enforce, or the performance of which the law will recognize as a duty. California Civil Code states a contract is 'an agreement to do or not to do a certain thing.'

• ✓A contract requires an enforceable promise or mutual promises
• ✓California Civil Code defines a contract as an agreement to do or not to do a certain thing

Contracts may be express or implied. In an express contract, parties declare terms in words (oral or written). In an implied contract, the agreement is shown by acts and conduct rather than words.

• ✓Express contract: terms stated in words, oral or written
• ✓Implied contract: agreement shown by acts and conduct
• ✓Contract implied in fact differs from contract implied in law, which is created by law for reasons of justice

Regarding extent of performance, an executory contract has something remaining to be done by one or both parties. An executed contract is one where both parties have completely performed.

• ✓Executory: something remains to be done
• ✓Executed: both parties have fully performed

An escrow is a small, short-lived trust arrangement essential for real property transfers and other transactions such as exchanges, leases, sales of personal property, securities, loans, and mobilehome sales. Civil Code Section 1057 describes it as a grant deposited by a grantor with a third person, to be delivered upon performance of a condition. Financial Code Section 17003 defines escrow as any transaction where one person delivers written instruments, money, evidence of title, or other things of value to a third person to be held until a specified event happens or condition is performed.

• ✓Civil Code Section 1057 defines escrow as a grant deposited with a third person, delivered on performance of a condition
• ✓Financial Code Section 17003 defines escrow as delivery of instruments, money, or value to a third person held until a specified event or condition occurs
• ✓An escrow is essentially a small and short-lived trust arrangement

Two essential elements are required for a valid sale escrow: (1) a binding contract/agreement between buyer and seller, and (2) conditional delivery to a neutral third party of something of value, typically including written instruments of conveyance (grant deed) or encumbrance (deed of trust). The binding agreement can take any legal form, including a deposit receipt (residential purchase agreement), agreements of sale, exchange agreements, option agreements, or bilateral/unilateral escrow instructions.

• ✓A valid sale escrow requires a binding contract/agreement between buyer and seller
• ✓A valid sale escrow requires conditional delivery of something of value to a neutral third party
• ✓The binding agreement can appear in any legal form including deposit receipts, exchange agreements, or escrow instructions

A leasehold interest is defined by the right to exclusive possession and use of real property for a fixed period held by the lessee (tenant). The lessor (landlord) retains basic title (the reversion). Parties like hotel guests, licensees, and employees may use space but lack exclusive possession, so they are not governed by landlord-tenant law.

• ✓The distinguishing feature of a leasehold is the right to exclusive possession
• ✓Hotel guests, licensees, and employees are NOT tenants because they lack exclusive possession
• ✓The landlord holds the reversion during the lease term

An estate for years continues for a definite period fixed in advance by agreement. Despite the name, the period may be less than a year, measured in days, weeks, or months. It ends automatically at expiration without notice.

• ✓An estate for years has a definite period fixed in advance
• ✓The period may be shorter than a year despite the name
• ✓No notice is required to terminate at expiration

A periodic tenancy continues for successive periods (year-to-year, month-to-month, or week-to-week) as designated by the parties. The most common periodic tenancy is month-to-month.

• ✓A periodic tenancy continues for successive designated periods
• ✓Month-to-month is the most common periodic tenancy
• ✓Requires proper notice to terminate

Although a lessee has an interest in real property, a leasehold estate is classified as chattel real - a form of personal property. It is governed by laws applicable to personal property, not real property.

• ✓A leasehold estate is chattel real (personal property)
• ✓Leasehold estates are governed by laws applicable to personal property

An estate at will is terminable at the unilateral decision of either party with no designated duration. These are uncommon because a landlord's acceptance of periodic rent converts it into a periodic tenancy (Civil Code Section 1946). California requires 30-day advance notice of termination.

• ✓An estate at will has no designated duration and is terminable by either party
• ✓Acceptance of periodic rent converts it to a periodic tenancy (CC 1946)
• ✓California requires 30-day advance notice of termination

An estate at sufferance arises when a tenant who rightfully came into possession retains possession after expiration of the term (a holdover tenant). A tenant at sufferance is not entitled to notice.

• ✓An estate at sufferance arises from a holdover tenant after lease expiration
• ✓The tenant originally came into possession rightfully
• ✓A tenant at sufferance is not entitled to notice of termination

An agent is one who represents another, called the principal, in dealings with third persons. In an agency relationship, the principal delegates to the agent the right to act on his or her behalf and to exercise some degree of discretion. Real estate brokers are typically special agents limited to soliciting and negotiating on behalf of the principal.

• ✓Civil Code § 2295 (enacted 1872): An agent represents the principal in dealings with third persons
• ✓Real estate brokers are special agents who generally cannot bind their principals or act in their place
• ✓Business and Professions Code § 10131 et seq. governs the special agency of brokers

An agency relationship creates a fiduciary duty owed by the agent to the principal within the course and scope of the agency. Courts compare this duty to that owed by a trustee to trust beneficiaries. These duties are the source of most negligence and breach of fiduciary duty claims against licensees.

• ✓Fiduciary duties include loyalty, confidentiality, utmost care, full disclosure of material facts, accounting, and honest dealing
• ✓The duty includes 'explaining' and 'counseling' about disclosures so the principal can make informed decisions
• ✓Civil Code § 2322 and Probate Code §§ 16000-16105 compare the broker's duty to a trustee's duty

A real estate salesperson is an agent of the real estate broker regardless of employee or independent contractor status. The broker is responsible for the salesperson. Duties owed by a salesperson equal the duty owed by the broker. Broker associates act as agents of the responsible broker like salespersons.

• ✓Civil Code § 2079.13(b): duty owed by salesperson equals duty owed by the broker for whom the salesperson acts
• ✓The broker is responsible for salespersons who act as agents of the broker

To be entitled to a commission, the broker must either (1) produce a buyer who is ready, willing and able to purchase upon the terms and price stipulated by the seller, or (2) secure from the prospective buyer a binding contract on terms the seller subsequently accepts. The broker's right to compensation under a listing is based on the written employment contract and requires the broker to be the procuring cause. A 'ready and willing' buyer is prepared to enter a binding unconditional contract; an 'able' buyer has the financial ability to obtain the funds necessary to consummate the transaction at the proper time.

• ✓A commission requires producing a ready, willing and able buyer OR securing a binding contract the seller accepts
• ✓The broker must be the procuring cause of an offer under a listing agreement
• ✓An 'able' buyer must have financial ability to complete the transaction; a 'ready and willing' buyer must be prepared to enter a binding unconditional contract

Payment of a commission under a listing contract may be made dependent upon any lawful condition. A seller may be relieved from paying if the contract language shows payment was contingent on a condition that did not occur. The burden is on the broker to establish that all conditions were fulfilled. However, if fulfillment of a condition is prevented by the seller's fraud, bad faith, or collusion with others, the broker may recover even if the condition was not met.

• ✓Payment of commission may be made dependent on any lawful condition
• ✓The burden is on the broker to prove all conditions of the contract were fulfilled
• ✓If the seller's fraud, bad faith, or collusion prevents fulfillment of a condition, the broker may still recover compensation

The amount or rate of compensation may not be part of a printed or form agreement for the sale of residential real property of four units or less or the sale of a mobile home. Such agreements must contain a 10-point boldface type notice that real estate commissions are not fixed by law and may be negotiated. The required wording is set out in Business and Professions Code § 10147.5.

• ✓Commission rate cannot be preprinted in form agreements for residential property of 4 units or less or mobile home sales
• ✓Agreements must contain a 10-point boldface notice that commissions are not fixed by law and are negotiable (B&P Code § 10147.5)

Revocation of authorization cannot deprive the broker of compensation if, within the listing time period, the broker found a ready, willing and able buyer at the listed price and terms. A principal cannot escape liability by capriciously refusing to consummate a sale. A principal cannot discharge an agent during negotiations and then sell to that customer without liability. When the listing is for a definite period with valuable consideration (e.g., promise of due diligence), it binds the seller upon execution. A key distinction exists between the POWER to revoke and the RIGHT to revoke: the principal always has the power to revoke at any time, but wrongful revocation breaches the contract and may create liability.

• ✓A principal has the POWER to revoke the agency at any time but not necessarily the RIGHT to revoke without liability
• ✓Wrongful revocation breaches the listing and may make the principal liable for the commission or damages
• ✓A principal cannot discharge an agent during negotiations and then sell to that same customer without liability
• ✓The principal may revoke without liability if the agent failed to use due diligence or breached fiduciary duties

A listing agreement is result oriented. The broker's right to a commission does not depend on the amount of work performed. Even if the broker expends no time or effort but produces a buyer ready, willing and able to purchase on the listing terms, the broker has earned compensation. Conversely, extensive effort without producing such a buyer earns nothing.

• ✓The broker's right to a commission is not dependent on the amount of work performed
• ✓Producing a ready, willing and able buyer on listing terms earns the commission regardless of effort expended

A broker or other fiduciary who fraudulently appropriates or secretes trust funds commits a crime. This underscores the fiduciary duty licensees owe when handling client money.

• ✓Fraudulent appropriation or secreting of trust funds by a broker or fiduciary is a crime (PC 506)
• ✓A broker or agent who 'holds out' on a principal, or renders a false accounting, commits a misdemeanor (PC 536, 536a)

Real estate licensees must understand theft distinctions because crimes may be committed by clients or others they interact with. Grand theft (as opposed to petty theft) generally occurs when the value of money, labor, or real or personal property taken exceeds $400. However, theft of certain farm crops, farm animals, and real property severed from land is defined as grand theft even at values below $400.

• ✓Grand theft is committed when value taken exceeds $400 (PC 484, 487, 488)
• ✓Theft of farm crops, farm animals, and real property severed from land is grand theft below $400 (PC 487a-487g)
• ✓If doubt exists whether a transaction involves a crime, a licensee should obtain legal advice

Making or recording a deed while knowing the maker has no title, or being party to a fraudulent conveyance of land, is a crime. Selling the same land twice to different persons is also criminal.

• ✓Making or recording a deed knowing the maker has no title is a crime (PC 531a)
• ✓Selling the same land twice to different persons is a crime (PC 533)
• ✓Willful concealment by a married person of the need for spousal concurrence in sale or mortgage of land is a crime (PC 534)

Making or procuring a false financial statement to obtain credit for oneself or another is a crime. Signing another's or a fictitious person's name without authority, or forging/altering documents like leases, deeds, or checks with intent to defraud, is forgery.

• ✓Making or procuring a false financial statement to obtain credit is a crime (PC 532a)
• ✓Forging, altering, or counterfeiting leases, deeds, or checks with intent to defraud is a crime (PC 470, 473)

Bribing a lender to obtain credit, and accepting such a bribe, are both crimes. Accepting compensation from a title or escrow company as an inducement for referral of title business is prohibited.

• ✓Bribing a lender to obtain credit, and accepting the bribe, are crimes (PC 639, 639a)
• ✓Accepting compensation from a title or escrow company as inducement for referral of title business is a crime (PC 641.4)

Diverting construction funds from their intended purpose, or using a false voucher to obtain construction loan funds, is a crime. Giving a kickback of construction funds is also a crime.

• ✓Diversion of construction funds or use of a false voucher to obtain loan funds is a crime (PC 484b, 484c)
• ✓Giving a kickback of construction funds is a crime (PC 532e)

Obtaining property from another by extortion — using force or a threat of injury to person, property, or reputation — is a crime. Other property crimes include removing structures from mortgaged property with intent to defraud.

• ✓Extortion (force or threat of injury to person, property, or reputation) to obtain property is a crime (PC 518, 519)
• ✓Removing a structure from mortgaged property or after foreclosure with intent to defraud is a crime (PC 502.5)

Placing advertising signs on public or private property without permission (except posting legal notices) is a crime. Copying title company documents without permission and with intent to use them is also prohibited.

• ✓Placing advertising signs on property without permission is a crime, except legal notices (PC 556, 556.1, 556.2)
• ✓Copying title company documents without permission and with intent to use is a crime (PC 496c)

A debtor who sells property covered by a security agreement and fails to pay the secured party the amount due (or the sale proceeds, whichever is less) commits a crime.

• ✓Failure by a debtor to pay the secured party upon sale of secured property is a crime (PC 504b)
• ✓The amount owed is the amount due under the security agreement or the sale proceeds, whichever is less

When a loan is funded or a promissory note is purchased by more than one private investor/lender, the transaction is a 'multi-lender' or 'fractionalized' loan. These notes are securities regulated under the Real Estate Law and the Corporate Securities Law of 1968. The broker must qualify the offering by exemption or registration.

• ✓Corporations Code Section 25019 describes notes as securities unless exempt
• ✓Multi-lender exemption is set forth in Business and Professions Code Section 10237 et seq. and Corporations Code Section 25102.5
• ✓Interests must be offered by exemption or by registration/permit from the DOC

The broker (MLB) must notify the DRE within 30 days after the first multi-lender transaction and within 30 days of any material change. A servicing agent must notify within 30 days after servicing loans with payments exceeding $125,000 in any 3 consecutive months or when lenders entitled to payments exceed 120.

• ✓Notify DRE within 30 days after first multi-lender transaction (B&P 10238(a))
• ✓Notify within 30 days of any material change
• ✓Servicing notification triggered by $125,000 in 3 months or more than 120 investors (B&P 10238(b))

The note cannot be sold to more than 10 persons who must meet income or net worth suitability requirements. The investment cannot exceed 10% of net worth (exclusive of home, furnishings, automobile) or 10% of adjusted gross income.

• ✓Note cannot be sold to more than 10 persons
• ✓Investment cannot exceed 10% of net worth (excluding home, furnishings, auto)
• ✓Investment cannot exceed 10% of adjusted gross income (B&P 10238(f))

Article 6 imposes loan-to-value limits: 80% of current fair market value for improved property, 50% for unimproved property, and 65% for single-family residentially zoned lots with installed offsite improvements. Limits may be exceeded with written justification in the file.

• ✓80% LTV maximum for improved real property
• ✓50% LTV maximum for unimproved property
• ✓65% LTV for single-family residentially zoned lots with offsite improvements (B&P 10238(h))

The real property securing a multi-lender loan must be located in California. Fractionalized notes and deeds of trust cannot be subject to subordination to any subsequently created deed of trust, and may not be promotional notes.

• ✓Security property must be located in California
• ✓Notes cannot by their terms be subject to subordination to later deeds of trust
• ✓Fractionalized notes may not be promotional notes (B&P 10238(d)(1) and (d)(2))

Promotional notes are secured by liens on separate parcels in a subdivision, executed on unimproved property or before first purchase of improved property, that are or may become subordinate. Two exclusions exist: notes executed more than three years before offering, and first-lien construction loans with disbursement schedules and title insurance.

• ✓Exclusion 1: note executed in excess of three years prior to being offered for sale
• ✓Exclusion 2: first deed of trust construction loan with progress disbursements and title insurance
• ✓Second exclusion does not extend to unimproved land or land with only offsite/onsite improvements

Fractionalized notes must be secured directly by real property. No collateral assignments (hypothecations) of fractionalized notes are allowed, as this would cause loss of the quasi-private placement exemption from securities registration.

• ✓Hypothecation through collateral assignment causes loss of quasi-private placement exemption
• ✓Fractionalized notes must be secured directly by real property (B&P 10237 et seq.)

Securities must be issued by and sold through a licensed real estate broker acting as agent or principal. No self-dealing is allowed except in two disclosed fact situations involving foreclosure acquisition or re-selling foreclosed inventory, provided the broker's interest is first disclosed.

• ✓No self-dealing per B&P 10231.2 except two disclosed exceptions
• ✓Exception 1: acquiring note/property under foreclosure for which broker is servicing agent
• ✓Exception 2: reselling from inventory foreclosed property where broker was servicing agent

Each private investor/lender's interest must be identical in underlying terms including interest rate, servicing fees, and distribution of late charges/prepayment penalties. Investors may hold different percentages but no stripping of principal or interest is allowed. Interests must be evidenced by ratable fractionalized assignments, not participation certificates.

• ✓Interest rate, servicing fees, and fee distributions must be identical among investors
• ✓No stripping of principal or interest (income streams or yield spreads)
• ✓Interests must be ratable fractionalized assignments, not participation certificates (Corp Code 25100(s))

Brokers must advise investors of their right to an independent appraisal or the MLB's evaluation. Construction/rehabilitation loans require an OREA-qualified appraiser and USPAP-compliant appraisal with 'as is' and 'as completed' values. Seven safeguards apply and the loan cannot exceed $2,500,000.

• ✓Independent appraisal or MLB evaluation must be offered (waivable in writing)
• ✓Construction loan appraiser must be OREA-licensed and USPAP-compliant
• ✓Construction/rehabilitation loan cannot exceed $2,500,000 (B&P 10230(h)(4))
• ✓Requires independent neutral escrow, full funding, draw schedule, and independent inspections

Documentation must require that default on any interest is default on all interests, and that holders of more than 50% of beneficial interests govern actions binding all holders. The majority action affidavit excludes the broker or affiliate who issued or services the loan.

• ✓Default on any interest is default on all interests
• ✓More than 50% of beneficial interests govern actions (majority action affidavit)
• ✓Broker/affiliate issuing or servicing the loan is excluded from determining majority (Civil Code 2941.9)

MLBs must use DRE-published lender/purchaser disclosure statements before accepting funds. Forms 851A (origination), 851B (existing note sale), 851C (hypothecations, prohibited in multi-lender), and 851D (multiple properties/blanket encumbrance). MLBs cannot construct their own forms without DRE permission from at least 25 threshold brokers.

• ✓Four DRE forms: 851A, 851B, 851C, 851D for distinguishable transactions
• ✓Form 851C hypothecations are prohibited in multi-lender transactions
• ✓MLBs may not construct own forms without DRE permission for 25+ threshold brokers

All funds received from investors are trust funds handled per B&P 10145. The MLB must file CPA-prepared quarterly and annual reports if payments due in any 3-month period exceed $125,000 or persons entitled exceed 120. Article 6 criteria applies to payments DUE while Article 5 applies to payments COLLECTED.

• ✓Investor funds are trust funds (B&P 10145, 10CCR 2830.1)
• ✓CPA reports required if payments due exceed $125,000 in 3 months or 120+ investors
• ✓Article 6 uses payments DUE; Article 5 uses payments COLLECTED

A written servicing agreement is required to service loans. The investment contract test (Howey/Turner) requires: investment of money, expectation of profits, common enterprise, and reliance solely on management efforts of a promoter/third party. Payments must be transmitted pro-rata within 25 days of receipt.

• ✓Written servicing agreement required (B&P 10233, 10238(k))
• ✓Payments must be transmitted pro-rata within 25 days of receipt
• ✓Loan servicing for compensation requires a real estate broker's license unless exempt

Upon request, the broker must give investors the names and addresses of other purchasers. The broker cannot have any option right to acquire investors' fractionalized interests or the security property except as authorized (e.g., foreclosure with concurrent consent).

• ✓Broker must provide names/addresses of purchasers upon request (B&P 10238(m))
• ✓Broker cannot have future right to acquire investor interests except as authorized (B&P 10238(n))
• ✓Broker may acquire interests in foreclosure context with concurrent consent