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Author Topic: I'm a Realtor turning investor, how do I advertise and disclose?  (Read 1514 times)

Offline Al_Entrepreneur

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Greetings,

I am a Realtor in Western Mass and I am starting my career as an investor.  In MA and I think in most states, agents must disclose their licensed status, even in advertising.  This, from what I hear, can intimidate sellers.

Any advice or strategies on how to work with or around this law?

Offline matt-gerchow-real-estate

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Re: I'm a Realtor turning investor, how do I advertise and disclose?
« Reply #1 on: August 07, 2008, 08:47:59 pm »
Check with your local Realtor board.

Generally it is an addendum to add to your Purchase and Sale.

Each state is different.  I can tell you what to do for Florida but I think you are living elsewhere.

Hope this helps,

Matt Gerchow
www.googlefax.org - Learn to send faxes using gmail fax.

Offline hhiinvesting

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Re: I'm a Realtor turning investor, how do I advertise and disclose?
« Reply #2 on: August 07, 2008, 09:23:43 pm »
I figured that I'd do a little cut&paste if it's ok with the moderators.  This is taken directly from the National Association of Realtors.
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Article 4
REALTORS® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative. (Amended 1/00)

Standard of Practice 4-1

For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by REALTORS® prior to the signing of any contract. (Adopted 2/86)

Article 12
REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional. (Amended 1/08)
Standard of Practice 12-5

REALTORS® shall not advertise nor permit any person employed by or affiliated with them to advertise listed property in any medium (e.g., electronically, print, radio, television, etc.) without disclosing the name of that REALTOR®'s firm in a reasonable and readily apparent manner. (Adopted 11/86, Amended 1/07)

Standard of Practice 12-6

REALTORS®, when advertising unlisted real property for sale/lease in which they have an ownership interest, shall disclose their status as both owners/landlords and as REALTORS® or real estate licensees. (Amended 1/93)
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I've read manyyyyyyyyy different opinions on this issue.  You can argue this from each perspective.  My take:

If i'm upfront and transparent about the fact that I have my RE license, I'll first and foremost avoid 99.9% of the issues that would come up legally and ethically, but I can also mention that I'm held to a higher standard than a lot of other individuals.

I enclose "Home Consultant & SCLREA" (South Carolina Licensed Real Estate Agent) in every email I send through my LLC and it's on every business card as well.

I mention, on the first substantial verbal contact with the other individual that one or more of the individuals I work with, including myself have their RE license.

And when I start to buy with partners or through my Self-Directed RothIRA i'll still put somewhere on the Purchase&Sales contract that "one or more individuals involved in this transaction have their SC RE license."

Better safe than sorry.  But that's just my take.

Darin ~ Home Consultant & SCLREA
The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function. ~ F. Scott Fitzgerald

 




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