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Lena

Dodd-Frank Act

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This is regarding the Dodd-Frank Act. Under this law a seller can sell up to 3 residential property unlicensed. Now, can the seller be an entity or is the seller a natural person? For instance, lets say that one individual has multiple entities. Would the 3 property per year be enforced on the entity(ies) or the individual who owns it?

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I believe you may be misinterpreting Dodd-Frank. It allows an entity to originate up to three seller financed loans per year without registering as a mortgage loan originator.  The lender must be a natural person, estate, or trust that owns the property being financed.  It does not allow financing, listing or selling of properties not owned by the entity.  In other words, it does not allow unlicensed real estate sales.

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I believe you may be misinterpreting Dodd-Frank. It allows an entity to originate up to three seller financed loans per year without registering as a mortgage loan originator.  The lender must be a natural person, estate, or trust that owns the property being financed.  It does not allow financing, listing or selling of properties not owned by the entity.  In other words, it does not allow unlicensed real estate sales.

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5 hours ago, Lena said:

This is regarding the Dodd-Frank Act. Under this law a seller can sell up to 3 residential property unlicensed.

 

If by that you are thinking that the law overrides state real estate broker and sales persons licensing laws then you are not correct. Dodd-Frank does not override state professional licensing laws. The Dodd-Frank Act does not deal with the sales of real estate at all. It is a massive bill that deals with reform  and regulation of various financial institutions (e.g. banks, lenders, etc) and securities markets. Title XIV of the Act deals with mortgage lending, and imposes certain obligations on mortgage originators. However, natural persons, estates, and trusts that finance no more than the sale of three of their own properties during the year are excluded from the definition of a mortgage originator for the purposes of Dodd-Frank. See § 1401(cc)(2)(E) of the Act.

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