Legal Question in Real Estate Law in California

A broker does not have to be involved in a real estate transaction. It is customary for people buying and selling real property, to use a real estate agent, who must be supervised by a licensed real estate broker, but it is not a legal requirement. In many other states, the parties use an attorney to conduct the transaction, in what is known as a sit down closing. Many people also sell their homes, FSBO, which means For Sale By Owner. It is not impossible or illegal to do it yourself.

If you are in the Berkeley area, you may want to send an e-mail to Bryan Whipple, who posts responses on here routinely.

Thank you, Mr. Roach! Your answer is correct, a broker is required only in the sense that licensed real-estate salespersons, a/k/a agents, must work under the supervision of a broker. Attorneys can and do represent clients (either buyers or sellers) in real-estate transactions, although in California it isn't as usual as in other states, probably because of our well-developed system of title and escrow services. However, if there is anything suspicious or unusual about a proposed transaction, it is probably a good idea to involve a lawyer.

Mr. Whipple is not entirely correct about attorneys representing buyers and sellers. Attorneys are exempt from the education requirements of the license laws for real estate agents and brokers, and they can provide legal representation, but they cannot list properties and they cannot share in commissions unless they get a real estate license as well. I am also a little surprised that neither Mr. Roach nor Mr. Whipple have asked the big question here: why would you not want to use your own broker and use a lawyer instead? In California real estate transactions, the only person who pays a broker/agent is the seller. The buyer's broker/agent is paid by receiving a cut of the selling broker's commission. It costs the buyer nothing. Not only that, but because lawyers are essentially never used for residential real estate transactions in California, even active real estate attorneys would most likely only have their personal home purchase transactions as experience, and they would have let their agents/brokers do the work. As a (formerly) active real estate investor, I have sold properties without a broker to save the commission, but only in a private sale arranged without a listing, and I have never bought without one. Why do work that they know how to do as well or better than I do, and will do at no cost to me? I know some very good buyer's brokers and agents in Oakland I can refer you to (all my personal real estate was in Oakland and Piedmont). If you are adamant, however, about using a lawyer rather than an agent or broker, I would like to offer my services. I have over 15 years of experience in the Oakland/Berkeley/Piedmont real estate market as a buyer and seller, as well as an attorney, and I maintain a satellite office in downtown Oakland.