Legal Question in Real Estate Law in California

Brokering or Lending Issue?

Hello,

I currently work part-time at a mortgage brokerage. This is my question. If I have people contacting me (via. e-mail), looking for a lender to sell a note to, and I bring it to the brokers attention, what issues are there surrounding him or me legally if we were to accept these type of real estate transactions? Do we both need to be licensed? If so, what would be the licensing complications with DRE? If not, how should I approach this? Would there be any issues with the Department of Corporations @ DRE? Is it a brokering or lending issue, or both? Let me know.

Sincerely,

A confused individual


Asked on 4/21/04, 7:16 pm

2 Answers from Attorneys

Michael Olden Law Offices of Michael A. Olden

Re: Brokering or Lending Issue?

Good devious question, bring it to the "brokers attention". While first of all you shouldn't be sitting in front of the computer screen waiting for a free legal advice answer to a very sophisticated question which might involve both civil and criminal liability for you. Do you start to get the picture Sir or Madam. Too many questions about a space to answer. Very sophisticated sing to already know about the department corporations, D. R. E., and probably all the other agencies which might be involved in securities transactions. What you really want is the answer to how to skirt all of these agencies say you can take a piece of the action without having to be licensed. For that I tell you the following:I have been practicing law in this legal area for over 30 years and understand your problem well. I practice in the S.F. Bay Area and if you wish to contact me call at 925-945-6000. The

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Answered on 4/24/04, 8:21 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Brokering or Lending Issue?

I would start out by saying that the firm's, or your, advertising, etc. should be set up so that potential clients do not contact you via e-mail or otherwise.

There are certain things that an unlicensed employee can legally do, of course, and others that he or she can do under supervision, but if inquiries are coming to you via a personal Web site, something is amiss.

I suggest you read the DRE regulations yourself at www.dre.ca.gov and get a sense of where the boundary between permissible and impermissible activity lies. If you are then still confused, I would suggest a direct anonymous contact with a DRE enforcement or public-inquiry person to get advice.

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Answered on 4/21/04, 8:24 pm


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