Legal Question in Business Law in California

Re: What is legally required to start an Unclaimed Property location business.

Without being able to ask you a series of questions relating to what you will actually do to carry out this business, I can't give you complete advice. For this, you would need to retain and work with your own lawyer. However, I can mention a few of the activities for which you might need a special license or permit.

1. If you will be handling transactions in real property, you need a real estate broker's license.

2. If you take physical custody of property of others, you probably need a warehouseman's permit or license.

3. If you are making loans or extending credit, you may be a pawnbroker.

4. If you transport property belonging to others, you probably need a PUC carrier certificate.

5. Although real-estate brokers are licensed and heavily regulated, there are a few laws that relate to brokers of personal property. Division 9 of the California Financial Code used to be called the Personal Property Brokers Law, and it still regulates activities of persons performed in connection with certain kinds of loans on personal property, including repossession. If any of your activity amounts to assisting lenders in recovering property securing defaulted loans, you probably need a license under Division 9.

You are probably wise to buy a couple hours' time from a small-business attorney in your community, explaining your proposed business, to see whether other laws might impose licensing or permit requirements on you.