Legal Question in Real Estate Law in California

Offhand, I can't think of any reason it would be illegal. Generally, parties to a loan transaction are allowed to negotiate the terms, including brokers' fees, interest, repayment, etc. competitively, subject mainly to the broker licensing rules and/or the usury laws, which in turn are largely inapplicable to transactions arranged by licensed brokers. Perhaps if you could get back to me with some clue as to why you are concerned about a possible legal restriction on your right to negotiate a loan package of this kind, I might have a clue where to begin research. Another possibility would be to call the DRE and ask one of their folks who advises licensees as to whether the proposed deal is on the straight and narrow. In my experience, loan terms and loan packages, especially among business professionals, can become quite creative without becoming illegal.

I'm confused. Does he wants his broker's fee as part of a point paid through escrow, or compensation for construction work paid through escrow?