California Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the California Real Estate Exam. Engage with multiple choice questions and detailed explanations to sharpen your knowledge. Get ready to ace your real estate career!

Practice this question and more.

Can a fee be paid to a real estate broker by a lender for advising and assisting a buyer with mortgage needs?

Yes, but only if the broker does not finalize the sale
No, it is illegal
Yes, the fee could be paid
No, unless the broker is also a licensed lender

The correct answer is: Yes, the fee could be paid

The payment of a fee by a lender to a real estate broker for assisting a buyer with their mortgage needs is allowed by law. Option A is incorrect because there is no restriction on the broker finalizing the sale. Option B is incorrect because it is not illegal for a lender to pay a fee to a real estate broker. Option D is incorrect because a broker does not need to be a licensed lender to receive a fee for mortgage assistance. Therefore, option C is the correct answer. The payment of such a fee is a common practice in the real estate industry and is known as a "lender credit" or "mortgage broker fee." This fee is typically disclosed to the buyer and included in the closing costs for the sale.