Legal Question in Real Estate Law in California

California Real Estate

Does California Real Estate Law allow for a non-licensed party (i.e. not a real estate agent) to receive a finder's fee for having supplied a licensed real estate agent with information (such as in the case of a referral) that results in a seller choosing to list their property with this particular licensed real estate agent? If so, is there a standard percentage rate for this action (i.e. 2% of the agent's commission etc.)?


Asked on 3/19/08, 9:02 pm

2 Answers from Attorneys
Mitchell Roth MW Roth, Professional Law Corporation

Re: California Real Estate

Yes. No.

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Answered on 3/20/08, 2:19 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: California Real Estate

A non-licensed person may receive a finder's fee so long as his, her or its role is strictly limited to introducing the parties. Any participation in negotiations would push the finder into impermissible activity and NO fee could be claimed even if the fee had been duly earned based on the introduction. I would recommend that the agreement between the finder and the licensed agent be completely separate from any contract or other dealings between the agent and any buyer or seller.

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Answered on 3/19/08, 11:14 pm


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