California real estate disclosure laws California Real Estate Disclosures | Page 44

5. Estimated amounts to be paid by the borrower for:
•

Fire insurance coverage;

•

Balances due on prior liens, including interest, prepayment
penalties, fees for reconveyance, or other removal from record of
prior liens;

•

Amounts due other creditors; and

•

Assumption, transfer, forwarding and beneficiary statement fees.

6. Estimated balance of the loan(s) to be paid to the borrower after
deducting all commissions, loan fees, penalties, and costs and expenses
to secure the loan.
7. The principal amount of the loan(s).
8. Rate of interest (whether fixed or variable).
9. Term of the loan(s); number and amount of each installment; the
approximate loan balance at maturity; and the following notice in 10point bold typeface:
NOTICE TO BORROWER: IF YOU DO NOT HAVE THE
FUNDS TO PAY THE BALLOON PAYMENT WHEN IT COMES
DUE, YOU MAY HAVE TO OBTAIN A NEW LOAN AGAINST
YOUR PROPERTY TO MAKE THE BALLOON PAYMENT. IN
THAT CASE, YOU MAY AGAIN HAVE TO PAY
COMMISSIONS, FEES, AND EXPENSES FOR THE
ARRANGING OF THE NEW LOAN. IN ADDITION, IF YOU
ARE UNABLE TO MAKE THE MONTHLY PAYMENTS OR
THE BALLOON PAYMENT, YOU MAY LOSE THE PROPERTY
AND ALL OF YOUR EQUITY THROUGH FORECLOSURE.
KEEP THIS IN MIND IN DECIDING UPON THE AMOUNT AND
TERMS OF THIS LOAN.
10. A statement containing the name, real estate license number and
business address of the real estate broker negotiating the loan.
11. If the broker anticipates the loan will be made from funds owned or
controlled by the broker, the broker’s relative(s), or an entity in which the
broker alone or together with a relative(s) has/have a 10% or greater interest,
the broker’s statement to that effect.
12. Terms of prepayment of the loan, including the amount of penalty, if
any.
13. A statement that the purchase of credit life or disability insurance is not
required as a condition of the loan.

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