CA SB978

Requires real estate brokers selling notes secured by real property to comply with specific loan-to-value ratios (ranging from 35-80% depending on property type) and obtain appraisals for each parcel securing the note.

Mandates brokers make reasonable efforts to ensure note and deed of trust investments are suitable for purchasers based on their financial situation, investment objectives, and ability to understand and bear the economic risk of the investment.

Requires brokers to disclose in loan and purchase statements that they have a responsibility to make reasonable efforts to determine investments are suitable and appropriate for lenders and purchasers.

Requires issuers engaged in real estate business that rely on securities exemptions to provide additional information to non-accredited investors, including officer/director names, offering documents, and required licenses.

Directs the Commissioner of Corporations to prepare and publish annual reports on securities offerings authorized by permit, including data on investment categories, net worth requirements, suitability standards, and enforcement actions.