Financing, 9% of the examination
Article 7
California borrower-protection rules for covered real property loans made or arranged by a real estate broker.
Article 7 of the Real Estate Law requires a mortgage loan disclosure statement and regulates specified broker loan activity. Its commission and cost caps apply to covered dwelling-secured loans with principal below $30,000 when secured by a first lien and below $20,000 when secured by a junior lien. Maximum commission percentages vary by lien position and loan term, and additional rules address costs, balloon payments, late charges, and other loan terms. Identify the collateral, lien priority, amount, term, and broker's role before applying a particular limit.
Test the distinction
A relevant question from Financing, selected because its facts or explanation use this concept.
Which loans generally activate Article 7's small regulated-loan commission and cost caps?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.
Primary sources
Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.