Legal Question in Real Estate Law in California

Re: finder fee and refer fee with out DRE License

There is no maximum amount or precentage that separates a legal fee from an illegal fee. It it the nature of the activity that determines the need for a license and hence the legality or illegality of the activity performed.

I believe it is theoretically possible to design and operate a referral or finder business in California without a real estate license being required, but the limitations and the possibility of overstepping the bounds of legality would make trying to do so quite unwise. For example, if any of your compensation depended upon your success, that would probably be deemed a commission, requiring a license.

The fact that you have mentioned a percentage fee further suggests that what you're proposing to do involves receiving a commission and therefore a DRE license is required, among other things such as a contractual relationship with someone holding a broker's license.