Legal Question in Real Estate Law in California

Re: consulting contract

The only way Secondary can assure - well, almost assure - that it won't have a "commissiondectomy" performed on it is to have a well-written contract specifying its entitlement to a commission, signed by an authorized person for the party which will be liable for its payment.

Your question raises another possible problem that I encounter all too often, and that is the requirement to be licensed in order to participate in commissions earned from the sale of real property or businesses.

If Secondary isn't licensed, but needed to be, the best contract in the world won't entitle it to a commission. In fact, the better the contract, the stronger evidence it will be of wilful violation of the law. Also, if Secondary is going to be paid part of what Primary receives, and Primary receives nothing because it wasn't licensed and should have been, Secondary will probably get nothing as well, even if Secondary IS licensed.

Re: consulting contract

How is any lawyer going to be able to answer a question like this with the sparse information you've provided?

You are going to have to call a lawyer, make an appointment, bring your paperwork, sit down with the lawyer, let the lawyer read the paperwork, and retain him or her to draft a contract for you to get Consultant #1 to sign. This is how you get a good contract that protects you. The lawyer will also help you (presumably you are Consultant #2) negotiate with Consultant #1 on getting them to sign.

Re: consulting contract

This is a contract drafting issue. You will need to insist on provisions that protect your interests. In real estate consulting, I have even seen requirements that payment be through escrow. Since you don't indicate if there is a proposed contract, what kind of work, etc., the question is pretty difficult to answer except to say that you need good contract terms. I'd be happy to discuss this further with more information. Good luck!