Schweitzer

The Home Equity Sales Contracts Act (Civ. Code, § 1695 et seq.; HESC) was enacted to protect homeowners faced with mortgage foreclosure proceedings from being victimized by persons employing oral and written misrepresentations, intimidation, and other unreasonable commercial practices to induce the homeowners to sell their homes for a fraction of their fair market values and lose the equity in the homes. (Boquilon v. Beckwith (1996) 49 Cal.App.4th 1697, 1709 [ 57 Cal.Rptr.2d 503 ].) In 1990, the Legislature amended the HESC to add sections 1695.15 through 1695.17, which (1) made the home equity purchaser liable for all damages caused by the purchaser’s “representative” (§ 1695.15) and (2) imposed licensing and bonding requirements on (and disclosures by) the representatives (§ 1695.17). (Stats. 1990, ch. 1537, §§ 1-3, p. 7215.) The construction and operation of these sections, which have yet to be explored by the courts, is at the core of the present dispute.

In 2003, plaintiff Ingo Schweitzer’s home mortgage was in foreclosure. Defendant Westminster Investments, Inc. (Westminster), through its representative Ms. Cote, agreed in writing to purchase Schweitzer’s home and,…