CAR Contract Fraud 2023

California has a Residential Real Estate Brokerage System.
440,000 Licensed Professionals assist with the purchase and sale of Real Estate.
120,000 are Brokers and 320,000 are Agents that must work for a
Broker to participate in the system.

Brokers are individuals who are at the top of the Brokerage System.
They are the people allowed to "Broker" Deals.
They are responsible for Listing Properties for Sellers.
The are also responsible for representing Sellers and Buyers
in transactions via "Agency" agreements.

Brokers can act as the Agent for their Clients OR
they can "employ" Agents to do representation under their Supervision.

The Real Estate Brokerage Industry in California only exists as a
mandate by State Government for Consumer Protection.

Brokers are chartered with helping Sellers and Buyers comply with
complexities in Real Estate to avoid Legal Problems.

The Consumer Protection component makes it an "atypical" capitalist industry.
You can discern that via a very unique legal caveat.

Broker's can be held PERSONALLY LIABLE for the actions
of all their Agents and their Corporations.
No other Business Executive in the United States is bound by this caveat.

Brokers can setup Companies for their Brokerage and Agency Services,
but each company must have a "Responsible Broker"
who can be held personally Liable for all Brokerage Activities.

If I told you the entire California Brokerage Industry had been over run by Rogues, Gypsies,
and those willing to participate with a Blind Eye to the State Statutes for Consumer Protection,
what would it take for you to believe me?

What I have to share is short.
Even those with a closed mind will open quick given the gross
display of malfeasance sitting in CAR's very own forms.

May that which gives rise to all that is good
annihilate all that is bad with equal zeal.

The traditional Corporate Veil is absent.
Exploit that to no end, in California.

NAR (the National Association of Realtors) is the National Professional Organization for Brokers and Agents.

It's a "Voluntary Club" that offers benefits to its members.

The Term "Realtor" is in fact a trade mark / trade name that can only be used by Members of NAR.

Non members involved in Brokerage must refer to themselves simply as Real Estate Agents and/or Brokers NOT "Realtors".

CAR (the California Association of Realtors) is a the California Chapter of NAR.

The CAR website reveals a surprising amount of information related to Legal Services.

It appears they may offer some type of "prepaid legal" services for members, who might be Brokers or Agents.

Does this make sense?

NAR >> CAR >> Brokers >> Agents

Agents are responsible to Brokers.

Agents and Brokers are responsible for knowing Real Estate Law, but that's what they learn about in their Licensing courses.

Brokers are responsible for knowing MORE about Real Estate Law than Agents, and if they have true Legal Questions they should be using Attorneys for support, not CAR, a Trade Organization, correct?

The Continuing Ed Courses required for license renewals require Legal Update courses. From my experience as a Licensee in Maryland, those NEVER require the time allotted because real estate law is simply NOT dynamic. It's just not. NAR and residential trading in the current format has been around since 1908. The Changes transpiring to Real Estate Law now are minute.

Should this CAR website legal service section be a concern? Is CAR actually a Law Firm acting under the guise of a Trade Organization?

After you see what's transpired. Absolutely it should be a concern for sure.

The CAR website "Risk Management" page starts off with,

"Q) Where do I go to get legal questions answered".

The answer they provide is "Easy, look to the right".

The answer should be 1) if you are an Agent, go to your Broker and 2) if you are a Broker, Call your Attorney.

Is CAR offering Legal Advice to Agents and Brokers without a License to Practice Law?

Are they offering some type of Prepaid Legal Services?

Is CAR a Law Firm operating under the guise of a Trade Organization?

AND...what is the "Realegal"?

That's the text in the bottom right under "Miscellaneous / Contacts"?

Why do they advertise their "legal services" under Miscellaneous / Contacts?

What happens if I click on the "realegal" text?

Is that a Link?

When I clicked that text, I was taken to a Login page with a tag in the URL that likely redirects users on login to the 'realegal' backend.

In an Industry where the Brokers are supposed to be fully responsible for Legality, and Agents are supposed to be responsible to their Brokers, why are these legal services being offered to 120,000 Brokers and seemingly open to 320,000+ agents too?

We had a horrid buying experience in California. That's what gave rise to this website.

The Seller and Agent clearly knew about and attempted to use "inverted clauses" in the contract to attempt to benefit the seller in a fraudulent manner, while committing Broker Involved Disclosure Fraud (BIDF) to do it.

Our very own Broker Representatives were also fluent in the "inverted clauses" and they played right along with the Seller's Broker, as if I had no clue how to "do real estate", even when faced with their own crooked forms.

Could the entire California Brokerage Industry be using the CAR network to share "best practices" for using an "inverted contract" for seller and brokerage Benefits?

Could they be using the same for sharing "best practices" for foiling sincere legal attempts at recovery of damages for Buyers who were energetically and financially raped by Brokers, Agents and Sellers who actively engage in Fraud as part of their regular business practices with bogus contracts?

It sure looks that way to us. Let's see if we can share a perspective that helps you see it our way too.

Below you will see that CAR Publishes and acts as the "Approval Authority" on the Real Estate Contract
that is required for use by 440,000 Brokers and Agents.

Unfortunately, you will also see a massive disclaimer indicating the contract is warranted for
legality by no one for any specific transaction.

Statements from the form snippet above...
Copywrite - California Association of Realtors, Inc.
"THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF RELATORS. (CAR).
NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION.
A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS.
IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL
Published and Distributed by : Real Estate Business Services LLC -- a subsidiary of California Association of Realtors

Summary of Facts to This point...
CAR Inc own's the Copy-write to the Contract used state wide.
CAR owns the Publishing and Distribution Company for the Form.
CAR is the Professional Authority that "APPROVED" the Contract for use statewide.
CAR is the Professional Authority that requires this contract for use by Brokers statewide (to be verified...)
CAR offers Legal Services to Brokers and Agents but they indicate the Approved Contract is not legally warranted for use.
CAR tells novice Buyers and Sellers to seek out an Attorney if they have questions,
suggesting CAR nor the Brokers or Agents involved have no obligation for Legal understanding.

Does that "feel good to you"?

Does it make sense that the Real Estate Professionals should be
requiring you to use a contract with that level of legal disclaimer?

If it stopped there it would be uncomfortable.

That's just the tip of the Ice Burg.

What if I told you the contract is written in an unnecessarily confusing manner with vague, partial, and errant clauses that encourages sellers to do things that are fully CONTRARY to California Case Precedent and State Statutes created for Seller Behavior and Consumer Protection.

What if I told you this CAR Contract includes:

A Clause that suggests the SELLER can disclose all material facts and all material defects AFTER Contract Acceptance, fully nullifying the Disclosure process and all know rules and laws related to Good Faith Negotiations, long standing Common Law and foundational requirements to establish Representations subject to Misrepresentation.

What if I told you there are other clauses that suggest the seller can just keep disclosing stuff for weeks and weeks after a price has been agreed upon with a "get out of jail free" clause they can try to rely on that also violates all known rules and laws of real estate.

What if I told you this CAR Contract includes:

Clauses that suggest the BUYER has less rights than they do after Contract Acceptance, at which time Title Transfers, per clause 13B, in a way that nobody wants to talk about.
A Clause that suggests the BUYER must give the SELLER a "get out of jail free" card a few weeks into escrow, if the Buyer wants to complete the transaction he was in fact promised with Contract Acceptance weeks prior before any acts of Misrepresentation would have been known.
A Clause that indicates all disputes must be pursued via Mediation first if a BUYER wants to retain ability to collect for legal fees in the event of a win, WITHOUT DISCLOSING that California Law requires all mediation to transpire in 100% confidence and WITH an advertisement for CAR's very own Mediation Services!!!

Why would CAR do so many wrong things to "confutz" buyers and sellers via a contract?

What if CAR was actually run by Attorneys and the California Legal Lobby,
not business people ?

What if CAR, its affiliate organizations, and members of the Legal Lobby
earned money for each dispute created with the mandated CAR contract?

What if CAR, as the Publisher and Approval Authority for the contract,
also got to advertise their very own "dispute resolution services" for free
to EVERY BUYER and SELLER who might enter into a dispute due
CAR's crooked contract?

Would creating a contract that creates conflict regularly be a "profitable"
way to embolden the Legal Lobby across the entire state?
Aye Aye Cap-i-tan!! You betcha!!

Could you summarize this as "self dealing" in Conflict Creation and
Resolution for unworthy Profits?
I do.

Does any of this make you angry yet?
It does me. It should you.

And it gets worse...

Here's the part where they advertise CAR mediation services to resolve the disputes CAR is
creating with inverted contract clauses...

And it gets worse...

Did you read the last part of the paragraph with a clear set of eyes and an open mind?

If a harmed party wants to sue another party or a Broker they MUST pursue mediation.
If the do NOT, per the contract, they supposedly lose their rights to collect Attorney fees,
even if the State of CA Statutes would allow that otherwise.

Can a contract clause remove a state right like that?
Is that for real or just intimidation?
Would a court uphold that clause?

And now, here's the part that is totally OMITTED from this paragraph...

The State of California REQUIRES all Mediation to be done in 100% CONFIDENCE for all parties!

Do you realize the full ramifications of this entire scenario if you put it all together?

If you are a buyer who was harmed by Seller and Broker Misrepresentation and Malfeasance,
catalyzed by inverted CAR contract clauses to bias the contract for Sellers who want to cheat,
by the time you are harmed you are bound in a system that will REQUIRE
confidential mediation, with a suggestion to use the Conflict Promoter's Mediation Services ,
where it can all be covered up with "confidential mediation".

In that mediation, they will likely gladly pay you off for your silence at pennies on the dollar,
which would be scarring. Worse yet,
they might use one of several more deviant options to mentally poison you for life.

If you take the money you will be able to tell no one about the details.
If you do NOT take the money,
it will become clear you will face the potential of economic futility
in court due to the Contract Confusion alone.
You won't even get to facts about your dispute until you are 100,000's into legal fees
if Brokers and Sellers want it to be that way...

Worse yet,
with the "loser pays" format attached to this Contract,
if by chance the Judge is corrupt or legal loophole gets the violators off,
you could be on the hook for the criminals' legal fees too!!

While the Italian Mafia on the East Coast was setting up control of the Pizza Parlors, Sub Shops,
Taxi Services and Garbage networks,
who or what was setting up this far, far larger scam?

What you have just learned about may be one of the largest and longest running, most "decentralized" commercial HOAXs ever to be identified while still in operation.

What you have just learned about may be one of the largest and longest running, most "decentralized" commercial HOAXs ever to be identified while still in operation.

Everything here points to the entire California Legal Lobby as just the "starting point".

Welcome to CAR Contract Fraud 2023.