Unfortunately a regulatory body doesn't exist that has licensed you and is willing enforce any regulations for or against those unaccountable earnings.

I found this site to be very helpful in learning about the cfpb and ATR rule. http://www.consumerfinance.gov/regulations/ability-to-repay-and-qualified-mortgage-standards-under-the-truth-in-lending-act-regulation-z/ I would recommend anyone who has no idea what the cfpb and ATR rule is to give it a read.

Only problem is that since I regulate them, I can't use them!

Joe first off I can't give legal advice.This broker / agent might not be a REALTOR so code of ethics violation would be a non-starter in most states as the real estate commission doesn't handle that.The real estate commission helps to protect the interest of the general public and enforce the license laws and regulations.

With lending regulations as they are now, I'd think it would be easier to pull hen's teeth than to get an agent to carry back and secure it as a second in a commercial or residential transaction.

Just keep a thought in the back of your head that if you plan to invest at home (read: Canada) a few things will differ from investing in the U.S.A - namely in the areas of finance, regulation and taxation.The good news is there is a small cadre of Canadians active here on BP, so when you arrive at a one-of-these-things-is-not-like-the-others moment, you can ask for clarification.

But then you have disclosures to the sellers about mark up and profits.Gurus though and even here on the Hallowed grounds of BP they talk about how to get started in RE and they talk about bird dogging and wholesaling and its really not legal to do..Otherwise why would there even be a RE license or a RE brokerage business at all if we could all just go about willy nilly selling properties we don't own.I for one would love to see this practice brought down and regulated.

If you buy the property, you may be opening yourself up to the liability as current owner, so maybe a call to the regulators to ask a few questions before closing would be in order.

With the new Dodd Frank regulations making their way into the world, you REALLY have to know what you're doing.

If Bob actively recruited these other investors ("hey Joe, I have a way for you to make some money...") then Bob is "selling securities" and is subject to a plethora of regulations.