Under what condition can a real estate broker operate without a mortgage lending license?

The correct condition under which a real estate broker can operate without a mortgage lending license is when selling commercial properties. In California, a real estate broker is allowed to engage in activities related to commercial real estate transactions without needing a mortgage lending license. This is applicable because commercial loan transactions are generally considered separate from the regulations governing residential lending, allowing brokers to facilitate these transactions as part of their real estate services.

In contrast, making or servicing residential loans is regulated more strictly and requires a separate mortgage lending license. Acting as a fiduciary pertains to the obligations brokers have to their clients, which doesn't exempt them from licensing requirements in the mortgage industry. Providing legal advice is outside the typical scope of a real estate broker's duties and does not relate to the licensing conditions for mortgage lending. Therefore, the ability to sell commercial properties without a mortgage lending license clearly defines the broker's operational scope under state law.