Sometimes local news is national in nature. This is often true when it comes to California. With such a large population and a history of “active” politics, many of the laws and regulations that California passes eventually migrate to other states; sometimes this is reminiscent of a rainbow spreading across the land and sometimes it resembles more of a virus infecting people at whim. Get ready to feel sick.
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 falling 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.
This from Assemblywoman Debra Brady (R-Del Mar): “I believe this will cast a chill across the Internet and is nothing short of Big Brother clamping down on the free exchange of ideas. We must defeat this and we must take a stand for the First Amendment rights of every citizen, no matter what business they conduct.”
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