In conclusion, the payment of referral fees and or the giving of other consideration for a referral is sometimes a part of a real estate business transaction. Each time we have fee payment issue, we should determine whether state or federal law (or both) apply. If such law does apply, you must analyze the terms […]
Continue reading →Can pay a referral fee to an unlicensed person? The answer is yes if that person has not performed any licensed acts in connection with the transaction for which the fee is being paid. B&P Code Section 10130 states, in part, “It is unlawful for any person to engage in the business, act in the […]
Continue reading →I am serving on an American Bar Association, Senior Lawyers Division, Task Force in connection with setting up ABA approved guidelines to identify elder financial abuse with respect to retirement accounts. The relevant statute and the definition of Monitors, are hereinafter described. A broker-dealer who is a member [“Member”] of the Financial Industry Regulatory Authority (“FINRA”) […]
Continue reading →Financial Institution Letter (FIL-29-2017) applies to all FDIC-supervised institutions. Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended (Title XI) requires the Agencies to adopt regulations prescribing standards for appraisals used in connection with federally related transactions within the jurisdiction of each agency, including that they be performed by […]
Continue reading →There are a number of issues that should be considered when structuring an equity infusion and/or a strategic alliance. The first question is always, what is the regulatory issue associated with the business or new business plan? When setting up the business structure for the equity infusion, are there limitation on what type of entity […]
Continue reading →The Federal Trade Commission (the “FTC”) filed a complaint against Lending Club in the district court for the Northern District of California, in April, 2018. The complaint alleges that Lending Club’s online advertising “lures prospective borrowers by promising ‘no hidden fees,’ but when the loan funds arrive in a consumer’s bank account, the “hidden fees” […]
Continue reading →When considering the payment of fees, the parties must address the circumstance surrounding the payment of the fee, the type of transaction and to whom it would be paid. This article will discuss the payment of referral fees in California real estate transactions, mortgage loan transactions and fees paid to unlicensed persons. When discussing the subject […]
Continue reading →Referral fees are an extremely valuable tool in the marketplace of transactions. We are going to address the issue of the payment of fees between licensees and the payment of fees between a licensed and unlicensed entity under California and applicable federal law. The more interesting case is where a licensed California real estate broker […]
Continue reading →As a mentor and Bar leader, I am often asked by young attorneys; “How do I grow a successful practice as a young lawyer or partnering with another lawyer at my expertise level?” If you are currently with a firm, you should learn as much as possible on a daily basis. If you have a […]
Continue reading →Strategic alliances between banks and fintech companies to offer online loans have been the subject of legal negotiations and court cases over the past few years. Some of these bank alliances have been challenged in the courts by using the “true lender doctrine”. The doctrine states that at the time a loan is originated, the lender […]
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