short sale transactions, whether a buyer can be charged to compensate either the sale negotiator or the broker.

The California Department of Real Estate (DRE) is constantly asked, regarding short sale transactions, whether a buyer can be charged to compensate either the sale negotiator or the broker.  As of July 2011, California state law prohibits the charging of additional fees in exchange for the written consent of the sale.  Under the Real Estate Law, short sale fees may still be charged, but, to maintain a certain level of transparency, the negotiator must be properly licensed under California law, and there must be full written disclosure to all parties involved, including the short sale and originating lenders.  The compensation fees must be disclosed in the purchase agreements, escrow instructions, and HUD 1 statement.  Any "special fees" charged must be authorized by the DRE via an advance fee contract; Additionally, the Real Estate Settlement Procedures Act (RESPA) requires these fees to correspond to an actual service performed-in other words, the buyer must be getting work done for any money paid.  Any "junk" or "special" fees and they'll be on you like a ton of bricks.