California Business and Professions Code

§ 10232.3

BPC § 10232.3 Effective Jan 1, 2019Div. 4 · Part 1 · Ch. 3 · Art. 5

Statute text

(a)Any transaction that involves the sale of or offer to sell a note secured directly by an interest in one or more parcels of real property or the sale of an undivided interest in a note secured directly by one or more parcels of real property shall adhere to all of the following:

(1)Except as provided in paragraph (2), the aggregate principal amount of the note or interest sold, together with the unpaid principal amount of any encumbrances upon the real property senior thereto, shall not exceed the following percentages of the current market value of each parcel of the real property, as determined in writing by the broker or appraiser pursuant to Section 10232.6, plus the amount for which the payment of principal and interest in excess of the percentage of current market value is insured for the benefit of the holders of the note or interest by an insurer admitted to do business in this state by the Insurance Commissioner: (A) Single-family residence, owner occupied 80% (B) Single-family residence, not owner occupied 75% (C) Commercial properties and income-producing properties not described in (B) or (E)65% (D) Single-family residentially zoned lot or parcel that has installed offsite improvements including drainage, curbs, gutters, sidewalks, paved roads, and utilities as mandated by the political subdivision having jurisdiction over the lot or parcel 65% (E) Land that produces income from crops, timber, or minerals 60% (F) Land that is not income producing but has been zoned for (and if required, approved for subdivision as) commercial or residential development 50% (G) Other real property 35%

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Legislative history

Amended by Stats. 2018, Ch. 285, Sec. 49. (AB 2884) Effective January 1, 2019.