Legal Question in Real Estate Law in California
I AM SELLING MY HOME . CAN i PAY A FINDERS FEE TO ONE WHO FINDS A BUYER EVEN THOUGH HE IS NOT A LICENSED REAL ESTATE BROKER OR SALES AGENT?
3 Answers from Attorneys
Yes, provided they do not advise you or handle the transaction. Actually, you can pay them for that too if you want. It is they who would be breaking the law, not you.
For your own protection, you probably do not want to go further with a "finder" then their finding a buyer. In advising you beyond that, aside from being illegal, they likely do not know real estae law that well. The reason real estate sales people, many of whom should not be in that occupation, are allowed to take part is that they have had some education in real estate and have a more experienced person, their broker, looking over their shoulder.
Obviously you are not using an agent to represent yourself. Please read some books on real estate law so you know what information you must provide the buyer, how to structure the deal so it is best for you [best deal is one that is good for both of you--find out what the buyer really wants, will feel comfortable with, can financially handle -some people use a land contract where they sell the house to the person but the buyer does not get title for two years so it is easier to evict them, or lease with option to buy, etc].
Be careful as it is a very significant step and you can make or lose a lot of money and time.
[not proof read]
"Finders" can easily step over the line. The most common mistakes finders make are (1) advertising the properties they are working with, and (2) becoming involved in the negotiations regarding the price, financing, necessary disclosures, and other terms.