BILL NUMBER: AB 1356	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 7, 2008

INTRODUCED BY   Assembly Member Houston

                        FEBRUARY 23, 2007

   An act to amend Section 1695.17 of the Civil Code, relating to
real property.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1356, as amended, Houston. Real property: equity purchasers.
   (1) Under existing law, an equity purchaser is liable for all
damages resulting from any statement made or act committed by the
representative of the equity purchaser, as defined, in any manner
connected with the equity purchaser's acquisition of a residence in
foreclosure, receipt of any consideration or property from or on
behalf of the equity seller, or the performance of certain prohibited
acts. Existing law requires the representative of the equity
purchaser to provide a statement in writing to all parties to the
contract, under penalty of perjury, and written proof of licensure
and bonding to the equity seller, as specified.
   This bill would instead require the representative of an equity
purchaser to provide to the parties to a contract written proof of
licensure, as specified. The bill would also require the
representative to provide a statement under penalty of perjury and
written proof that he or she has  either (1)  satisfied 
a  certain minimal   minimum 
professional liability coverage  requirement  or  (2)
met a certain minimum  bonding  requirements or that he
or she   requirement and  has an unrestricted real
estate license in good standing  and   , as
described by the regulations of the Real Estate Commissioner, 
that  his or her license  is not restricted pursuant
to the Real Estate Recovery Program, as specified.  Because the
bill would expand the scope of the existing crime of perjury, it
would impose a state-mandated local program. 
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1695.17 of the Civil Code is amended to read:
   1695.17.  (a)  A representative, as defined in subdivision (b) of
Section 1695.15, deemed to be the agent or employee, or both the
agent and the employee of the equity purchaser is required to provide
written proof to the parties to the contract that the representative
has a valid current California Real Estate Sales License and that
the representative meets the financial responsibility requirement
described in subdivision (c).
   (b) The failure to comply with subdivision (a) shall at the option
of the equity seller render the equity purchase contract void and
the equity purchaser shall be liable to the equity seller for all
damages proximately caused by the failure to comply.
   (c) For purposes of this section, a representative shall
demonstrate financial responsibility by providing written proof of
and a statement under penalty of perjury that he or she has 
any   either  of the following:
   (1) Professional liability coverage in an amount equal to at least
twice the value of the property that is subject to the contract 
, or one million dollars ($1,000,000), whichever is less; and an
unrestricted real estate license in good standing as described by the
regulations of the Real Estate Commissioner pursuant to Chapter 6
(commencing with Section 2705) of Title 10 of the California Code of
Regulations, that is not restricted under the Real Estate  
Recovery Program pursuant to Chapter 6.5 (commencing with Section
10470) of Part 1 of Division 4 of the Business and Professions Code
 .
   (2) A surety bond in an amount equal to at least twice the value
of the property that is subject to the contract. 
   (3) An unrestricted real estate license in good standing as
described by the regulations of the Real Estate Commissioner pursuant
to Chapter 6 (commencing with Section 2705) of Title 10 of the
California Code of Regulations, and that his or her license is not
restricted under the Real Estate Recovery Program pursuant to Chapter
6.5 (commencing with Section 10470) of Part 1 of Division 4 of the
Business and Professions Code. 
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.