Is a broker allowed (permitted) to accept lender funds unless that broker owns the loan? Which requirement under the California Business and Professions Code addresses the question?

Question

Social Studies

Cael Mcintosh

14 October, 22:36

Is a broker allowed (permitted) to accept lender funds unless that broker owns the loan? Which requirement under the California Business and Professions Code addresses the question?

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Answers (1)

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Pretty Lady · Answer 1

No, it is NOT permissible for a broker to accept lender funds. The requirement is outlined in Article 5.

Explanation:

A broker is a person who arranges dealings between a buyer and a seller. He earns commission, when the deal between the parties is executed. In simple words, the broker is a person who buys and sells products for others.

The brokers often involve and earn much in real estate field. Business and Professions Code in California say that the broker is not permitted to accept the lender funds unless the broker owns the loan. This was explained in Article 5.