Re: Are finder’s fees illegal? - Posted by Bill Gatten
Posted by Bill Gatten on March 25, 2001 at 15:23:15:
Bad news: Good news:
The penalty for dealing in RE w/o a license in Ca. $10,000 fine, and or six month in jail (or that was the case 10 years ago…may be more now).
However, since you are not a Realtor (I presume) and since you are merely seeking a buyer for your own property, YOU would not be guilty of brokering without a license. AND…if your finder were not involved in advertising, soliciting, negotiating or showing the property…he or she would not be in violation either.
Therefore, if my presumptions are correct about your broker status, you’re good to go with offering a finder’s fee.
Someone here recently distributed flyer that said essentially:
LOST…Buyer for my beautiful home at xxx St.
DESCRIPTION OF MISSING PERSON: Has good job and appears to need nice 3+2 cozy home with reasonable payments ($xxx) valued at $xxxx. Credit not an issue, no down or bank qualifying need. 3 Pmts and Closing Costs constitutes total move-in.
$500 paid for information leading to lthe finding of that needy couple or person in search of a wonderful place to live.
Call xxx xxx xxxx