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HomeBusiness and Professions CodeDiv. 4Pt. 1Ch. 7Art. 1§ 10509 Broker Licensing Compensation Rules

§ 10509 Broker Licensing Compensation Rules

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

§ 10509 Broker Licensing Compensation Rules

Key Takeaways

  • •Only licensed brokers can get paid for selling oil, gas, or minerals.
  • •If you pay someone who isn't licensed for this work, you can get fined $100 each time.
  • •Even if you're holding money for someone (like in escrow), you can't pay an unlicensed person for this job.

Example

If you hire your neighbor to help sell your oil land and pay them $500, but they don’t have a broker license.

You could get fined $100 because you paid someone without a license for a job that requires one.

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

Official Source
View on CA.gov

§ 10509 Broker Licensing Compensation Rules

(a) It is unlawful for a mineral, oil, and gas broker or a real estate broker to compensate, directly or indirectly, any person who is not a mineral, oil, and gas broker or a licensed real estate salesperson retained by the real estate broker for performing any acts for which a mineral, oil, and gas broker license is required. (b) It is a misdemeanor, punishable by a fine of not exceeding one hundred dollars ($100) for each offense, for any person, whether obligor, escrow holder, or otherwise, to pay or deliver compensation to a person for performing any acts for which a mineral, oil, and gas broker license is required unless that person is known by the payer to be or has presented evidence to the payer that he or she was a licensed mineral, oil, and gas broker at the time the compensation was earned. (Amended by Stats. 2018, Ch. 285, Sec. 52. (AB 2884) Effective January 1, 2019.)

Last verified: January 22, 2026

Key Terms

mineral, oil, and gas brokerreal estate brokerlicensed real estate salespersonmisdemeanorfine of not exceeding one hundred dollars ($100)

Related Statutes

  • § 10500.5 Mineral And Oil Broker Licensing
  • § 10500 Mineral And Gas Brokerage
  • § 10501 Real Estate Violation Enforcement
  • § 10502 Mineral Broker License Exemptions
  • § 10503 Mineral And Oil Land

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 10509.
View Official Source