FYI: I am a member of the State Bar of California, the Bar of the U.S. District Court for the Central District of California (San Luis Obispo, Santa Barbara, Ventura, Los Angeles, Orange, San Bernardino, Riverside Counties), and the California and National Associations of Realtors.
Cal. Civil Code Section 1691 et seq. provides the law concerning Home Equity Sales Contracts. You must follow the laws closely, because violations can result in both civil and criminal penalties.
There is no guide book for this type of transaction. The laws were originated in 1979 at a time when con artists were tricking property owners into selling their homes which were in foreclosure, but which had equity value. As a result the foreclosed homeowners lost both their home and the equity value. This circumstance bears no relationship to the 2008 recession, because in the recent foreclosure crises homeowners had no equity.
Regardless, the laws remain, and there is a high level of risk associated with these types of purchase transactions. So, please be careful.
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