A Green Road Blog 

"Licensed brokers and sales agents owe fiduciary duties to the principals they represent. Fiduciary dutiesrequire licensees to perform on behalf of their client with the utmost care and diligence.

An unlicensed finder has no such fiduciary duty. A finder’s function as an “agent” is limited to soliciting, identifying, and referring potential real estate clients or participants to brokers, agents, or principals in exchange for the promise of a fee.

A finder working for a principal is distinguished from a licensed broker working for a principal. Limitations are placed on the conduct of a finder. A finder lacks legal authority to participate in any aspect of property information dissemination or other transactional negotiations. [Calif. Business and Professions Code§§10130 et seq.]

Although not licensed by the California Department of Real Estate (DRE) or admitted as members of a real estate trade association, finders are authorized by California statute to solicit prospective buyers, sellers, borrowers, lenders, tenants, or landlords for referral to real estate licensees or principals. Thus, they provide leads about individuals who may become participants in real estate transactions..................."

http://blog.firsttuesdayjournal.com/?p=1168