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HomeBusiness and Professions CodeDiv. 4Pt. 1Ch. 3Art. 1§ 10138 Unlicensed Real Estate Compensation

§ 10138 Unlicensed Real Estate Compensation

Business and Professions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 10138 Unlicensed Real Estate Compensation

Key Takeaways

  • •You can't pay someone for doing real estate work unless they have a real estate license.
  • •If you pay an unlicensed person for real estate work, you can be fined up to $100 each time you do it.
  • •If a licensed real estate person breaks this rule, they can lose their license temporarily or forever.

Example

You hire your friend to help sell your house and pay them $500 for their help.

If your friend doesn’t have a real estate license, you could be fined $100 for paying them. Your friend could also get in trouble if they’re supposed to have a license.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 10138 Unlicensed Real Estate Compensation

It is a misdemeanor, punishable by a fine of not exceeding one hundred dollars ($100) for each offense, for any person, whether obligor, escrowholder or otherwise, to pay or deliver to anyone a compensation for performing any of the acts within the scope of this chapter, who is not known to be or who does not present evidence to such payor that he is a regularly licensed real estate broker at the time such compensation is earned. For a violation of any of the provisions of this section, the commissioner may temporarily suspend or permanently revoke the license of the real estate licensee in accordance with the provisions of this part relating to hearings. (Amended by Stats. 1983, Ch. 1092, Sec. 38. Effective September 27, 1983. Operative January 1, 1984, by Sec. 427 of Ch. 1092.)

Last verified: January 22, 2026

Key Terms

misdemeanorfinelicensed real estate brokercompensationcommissionersuspend or revoke

Related Statutes

  • § 10131 Real Estate Broker Duties
  • § 10131.4 Mineral Property Brokerage Rules
  • § 10131.7 Mobilehome Sales Advertising Rules
  • § 10137 Broker Compensation Restrictions
  • § 10137.1 Partnership Broker Licensing

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 10138.
View Official Source