Legal Question in Real Estate Law in California

Re: CA foreclosure consultant law

Here's the way I understand it....

(1) Regulations applying specifically to foreclosure consultants, such as a special surety bond requirement, do not apply if you are not a foreclosure consultant as defined in the law.

(2) Civil Code section 2945.1(b)(3) goes to great length to say that a "foreclosure consultant" does not include a person licensed under Business and Professions Code Division 4, Part 1, commencing with Section 10000. This is the broker licensing law.

(3) Therefore, I'd say you are not required to meet these special foreclosure consultant rules so long as you adhere to the limitations on activities set forth in 2945.1(b)(3).

(4) Not all activities that a broker might do in connection with foreclosures are exempted! Therefore, you need to study the exemptions and draw some conservative, safe conclusions as to what you can and cannot do without becoming a foreclosure consultant.

If the limitations are not clear, maybe the DRE or a professional association can assist you with the details.