California Home Equity Sales Contract Act - Articles & Cases

The Home Equity Sales Contract Act is the California statute (section 1695 of the California Civil Code) that regulates home sales contracts between home sellers facing foreclosure and their prospective buyers.

For two online articles that refer to this statute, see:

Seller in Default, Buyers Take Care, and
Preforeclosure Sales in California

In addition, for those of you who like reading court cases (available online courtesy of Findlaw.com), see:

Boquilon v. Beckwith, 49 Cal. App. 4th 1697; 57 Cal. Rptr. 2d 503; (Cal. App. Ct., 1st Dist., Div. 2, 1996)

• about a California real estate agent who violated this law. The case involved a husband and wife facing foreclosure who sought out a real estate agent to discuss a refinancing of the home. The agent convinced the homeowners to deed the property over to her, after which the agent refinanced the property, but paid no equity to the homeowners and eventually evicted them. The homeowner was awarded damages against the real estate agent of approximately $39,500. In addition, the court found the real estate agent liable for an additional $19,500 in attorney's fees to be paid to the homeowner's attorney.

In re Phelps (2001) 93 Cal.App.4th 451 , 113 Cal.Rptr.2d 217 (Cal. App. Ct., 4th Dist. Div. 2)

• about an individual who pleaded guilty to criminal violations of the Act. Subsequent thereto, the individual filed a petition for writ of habeas corpus. The court found that the individual's "[c]ounsel rendered constitutionally deficient assistance in advising, or permitting, him to plead guilty to violating the "Home Equity Sales Contracts" law." The appellate court granted the petition for writ of habeas corpus. The individual was permitted to withdraw his plea of guilty and the matter was sent back to the lower court for further proceedings.

Segura v. McBride (1992) 5 Cal.App.4th 1028 , 7 Cal.Rptr.2d 436 (Cal. App. Ct., 1st Dist. Div 4)

• a case which raised "first impression questions concerning the class of persons regulated pursuant to [the Home Equity Sales Contract Act], as well as the measure of damages available thereunder."

.