Legal Question in Real Estate Law in California
is it illegal to request buyers to preqaual with a certain lender. I am not requiring any buyer to use this lender just to prequel. Thanks
1 Answer from Attorneys
Your question is somewhat short on facts needed to give you a certain and reliable answer, but I can try to give you some direction.
Assuming the question refers to what a licensee (salesperson or broker) can do, it's possible what you are asking about would fall under Business and Professions Code sections 10177.4 (Referral of customers for compensation, fees, etc.) or 10177.6 (Arrangement of financing). Willful violation of either section could be prosecuted as a misdemeanor under B&P Section10185.
I suggest that real estate licensees with questions about their policies and practices contact the Department of Real Estate to give a full description of the proposed policy or practice that may violate the rules before attempting it, and obtain an official position beforehand.