You need only reflect that one of the best ways to get yourself a reputation as a dangerous citizen these days is to go about repeating the very phrases which our founding fathers used in the struggle for independence. - Charles Austin Beard







Tuesday, April 01, 2008

As California Goes, So Goes the Nation

Have you seen what those loons in the California legislature are up to now?

The California legislature is currently voting on AB0401, a seemingly innocuous alteration to the licensing regulations that govern real estate here. But, as usual, the ramifications will be unexpected and monstrous. The stated purpose of AB0401 is to clarify the relationship between RESPA law and non-monetary remuneration between licensed real estate agents and non licensed participants in real estate transactions. Here is the key section:


All transactions following under the penumbra of RESPA shall heretofore be subject to review and restatement. No value shall pass or be caused to pass between a licensed broker or licensed sales associate of said broker and any non-licensed agency before or after such time as a real estate transaction may occur. Transfer of value is to include, but not be limited to: all forms of currency, any property or asset of value, any service of value and any intellectual property of value. (emphasis mine)


I am already reading pundits this morning here in California describing all online websites and blogs as intellectual property of value. So what does this mean to the
average agent, loan officer, title rep, etc? It means that if you are syndicating your posts to another person’s site, or posting on another person’s site and that site has the stated or implied purpose of generating real estate business, you are in violation of RESPA regulations and subject to fine and/or loss of license.



Read it all here

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