California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 2 - Corporate Securities
Article 4 - Standards for the Exercise of the Commissioner's Authority
Subarticle 10 - Real Estate Programs
Fees-Compensation-Expenses
Section 260.140.113.1 - Fees, Compensation and Expenses to be Reasonable
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) The total amount of consideration of all kinds which may be paid directly or indirectly to all persons shall be reasonable.
(b) Except for the promotional interests and program management fees permitted by Sections 260.140.113.5 and 260.140.113.6 hereof, and subject to all other prohibitions and requirements contained in these Rules, consideration may only be paid for reasonable and necessary goods, property or services.
(c) The Prospectus must fully disclose and itemize all consideration which may be received from the program directly or indirectly by the sponsor, its affiliates and underwriters, what the consideration is for, and how and when it will be paid. This information shall be set forth in one location in tabular form.
1. New section filed 5-18-92; operative 6-17-92 (Register 92, No. 22).
Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.
