Cal. Code Regs. Tit. 10, § 2970 - Advance Fee Materials
(a) A person who
proposes to collect an advance fee as defined in Section 10026 in the Code
shall submit to the Commissioner not less than ten calendar days before
publication or other use, all materials to be used in advertising, promoting,
soliciting and negotiating an agreement calling for the payment of an advance
fee including the form of advance fee agreement proposed for use.
(b) Material used in advertising, promoting,
soliciting and negotiating an advance fee agreement shall not be approved if
it:
(1) Includes any representation which is
false, misleading or deceptive.
(2)
Does not set forth a specific, complete description of the services to be
rendered for the advance fee.
(3)
Does not set forth the total amount of the advance fee along with the date on
which the fee shall become due and payable.
(4) Contains any provision which purports to
relieve or exempt the person collecting the advance fee from an obligation to
fulfill verbal commitments and representations made by retained broker
associates, retained salespersons, employees and agents of the person
contracting for the advance fee.
(5) Contains any provision which purports to
give a guarantee that the real property or business opportunity in question
will be purchased, leased or exchanged or that a loan secured by real property
will be obtained as a result of the services rendered by the person collecting
the advance fee.
(6) Does not set
forth a definite date for full performance of the services promised under the
advance fee agreement.
(c) Not less than 10-point type shall be used
in advance fee agreements.
Notes
Note: Authority cited: Section 10080, Business and Professions Code. Reference: Sections 10026 and 10085, Business and Professions Code.
2. Certificate of Compliance -Sec. 11422.1, Gov. Code for Article 21 (Sections 2970-2974), filed 12-15-59 (Register 59, No. 21).
3. Repealer and new section filed 7-1-83; effective thirtieth day thereafter (Register 83, No. 30).
4. Amendment of subsection (a) filed 4-1-93; operative 5-1-93 (Register 93, No. 14).
5. Amendment of subsection (b)(4) filed 1-21-2022; operative
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