Legal Question in Real Estate Law in California

Re: Do I Have To Pay?

Are you sure you never signed ANY papers? It is difficult to imagine getting that far into a loan-application process without having to sign something to allow the broker to proceed, such as an authorization to do credit checks. More likely than not, you have signed some kind of loan application to get this far.

Generally, mortgage brokers are required to be registered with the California Department of Real Estate. You should go back to the broker that is asking for the $1500 and demand that they show you the papers on which they base their claim. If they have anything, get a copy so you can assess its validity. If they have nothing, tell them you are thinking of reporting them to the DRE for trying to exact an improper fee. Your next step would depend on how they react.

You may get them to drop the claim at this point. If they persist, see the DRE. If they can't help, and you still think you don't owe the $1500, consider whether to get a lawyer at once, wait until sued (if you're sued), etc.