Legal Question in Real Estate Law in California
Can someone collect points on a sale w/out a license?
My question pretty much fits in the heading. I have heard that it is illegal to collect points on a sale if you are not a licensed (broker?)
Also, I have heard that verbal contracts are not valid in real estate. Is it true? My boyfriend's crazy mom has put a lis pendens on his property with a lawsuit claiming (not true, though) that he had an ''oral agreement'' to put it into a trust, with her in charge of it. This never took place and I've heard it shouldn't be valid at all because you can't use oral contracts. Is this true and what are the details of it??
5 Answers from Attorneys
Re: Can someone collect points on a sale w/out a license?
Yes, generally transfers of land cannot be accomplished without a written instrument. You may contact me to defend this case.
Re: Can someone collect points on a sale w/out a license?
You cannot charge points for arranging a real estate loan unless you have a license. A contract for real estate must be in writing. One exception is alleged fraud. A lis pendens can be removed by a motion to expunge. We would need to review the complaint and lis pendens in order to provide you with consultation. Should you desire same, please contact our office at 714 363 0220.
Re: Can someone collect points on a sale w/out a license?
Unless actual litigation is pending and she has legitimate claimed interest in the property, lis pendens cannot be recorded. Severe penalties if not removed. He needs a lawyer. Sales/purchases of real property require writing.
Re: Can someone collect points on a sale w/out a license?
You need a license to collect points on a real estate transaction. I have seen, however, parties paying consulting fees to people who assist them with transactional advice.
Agreements pertaining to real estate do need to be in writing but the question usually surrounds what is sufficient to constitute a "writing" under the statute of frauds. Sometimes simple letters or notes can be sufficient.
You should consider attacking the lawsuit as soon as possible. A motion to expunge the lis pendens will force the mother to make a preliminary showing that she can win her case and if she can't, the lis pendens is removed and your boyfriend may be awarded his attorneys' fees for filing the motion.
You should consult a real estate attorney as soon as possible.
Good luck.
Re: Can someone collect points on a sale w/out a license?
Yes you are right. Unless a person is licensed a person cannot charge points for arranging a real estate loan unless you have a license. Most often, a contract for real estate must be in writing. (There are of course some exceptions to that). Please note that your friend would probably want to have the lis pendens removed from his property. If you need help in this matter we can assist you.
Please contact our office at 408-371-0062
Samira Ansari, Esq.