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"Under the U.S.A. Patriot Act, the Treasury is already authorized to require real estate companies to scrutinize real estate buyers, but the department has in t

by pmorici 11y ago

"Under the U.S.A. Patriot Act, the Treasury is already authorized to require real estate companies to scrutinize real estate buyers, but the department has in the past faced fierce lobbying against issuing such rules" This article leaves out some important background details about why this was ever a thing to begin with. Real estate professionals have lobbied for and gotten an exception to the FinCEN reporting requirements that were passed under the PATRIOT act in 2002. The exception is a 'temporary' one but it has been continuously renewed since 2002. That is largely why this problem exists at all. The 2002 law imposed reporting requirements on businesses that accepted cash in transactions over $10k. The exemption for real estate left it as one of the only practical ways to make a large cash transaction that wouldn't end up in a so called 'suspicious activity report' being submitted to FinCEN.

marincounty 11y ago
Real Estate lobbiests have a lot of power, and are surprising effective. In CA a few years ago they wanted Gov. Schwartzeneger to sign a bill requiring all Realestae sales persons to be working for a broker for two years before striking out on their own to become Brokers. He saw the their wasen't a need to change the system, and vetoed it. He said, "Why decrease supply? We haven't had one instance where a new broker screwed up." We all know what it takes to peddle Realestae. Eight courses and a lot of networking, and a lot of advertising. It's not rocket science. It's such a joke--I'm astonished the profession haven't been gobbled up my an app yet. Well, out of stupidity, or lobbying Gov. Brown signed the bill. If you want to become a broker, and split you commission with the top cheerleader, you need to work two years in order to peddle houses. It bother me, because I saw the easy money years ago, but draged my feet on finishing my last class, and taking the easy test.

by pmorici 11y ago

marincounty 11y ago

Real Estate lobbiests have a lot of power, and are surprising effective. In CA a few years ago they wanted Gov. Schwartzeneger to sign a bill requiring all Realestae sales persons to be working for a broker for two years before striking out on their own to become Brokers. He saw the their wasen't a need to change the system, and vetoed it. He said, "Why decrease supply? We haven't had one instance where a new broker screwed up." We all know what it takes to peddle Realestae. Eight courses and a lot of networking, and a lot of advertising. It's not rocket science. It's such a joke--I'm astonished the profession haven't been gobbled up my an app yet. Well, out of stupidity, or lobbying Gov. Brown signed the bill. If you want to become a broker, and split you commission with the top cheerleader, you need to work two years in order to peddle houses. It bother me, because I saw the easy money years ago, but draged my feet on finishing my last class, and taking the easy test.