Let me be more specific…I’m not a real estate broker nor a property mgr in Oregon and I do not own the properties that I selling via lease option. The owner is still carrying the mortgage.
Here’s my problem…I have an investigator from the Oregon Real Estate Commission telling or hinting to me that I’m going to get a civil fine. At this point, he’s being a bit unclear and I think he’s even unclear about the Oregon Statute…
I have a conf call set for this Monday to talk to the investigator to let him know exactly what I’m doing with my lease option properties.
If anyone has ANY THING to help me on this, then please help if you can…
Sounds to me like you are just the latest victim of an envious and petty legal pinhead who hasn’t a clue as to what you do and how. I’ve had something similar happen to me. I know of others in various locales, (Alabama, Michigan, and Canada come to mind), who have faced the same scrutiny. And in each case the investigation went nowhere.
Assuming you are operating as a principal in the deal, there is no damn Government agency that can tell you that making a profit from a real estate transaction is illegal.
I am not an attorney, nor am I familiar with the specifics of Oregon real estate code, so please don’t take my post here as legal advice. But I am telling you I have seen this happen previously to a number of folks in a number of places. And in each instance, once the investor made clear what we do and how we do it as a principal, the investigator crawled back under the rock he came out from.
How did this investigation come about in the first place?
:cool yes this is my question as well how did he come to be looking at you and the way you do things ??? AS i have been working real estate in the northwest for over 12 years ( washington - oregon ) and have never had any inspector looking at me or asking any questions
We had a real estate broker make a complaint. I’m not too sure why she chose us to make a complaint on? However, her complaint was that we’re not licensed real estate brokers AND/OR property mgrs in Oregon. The investigator keeps going back to us not “owning” the property so therefore we can NOT market the property or show the property? We are fairly new to lease options so we aren’t too sure what we’re doing wrong, or IF we are doing anything wrong?!
:cool yes you have a problem if it is not your property to try and lease option >>>> you have to have control and it be your property in some legal way >>> or yes you are actting like a real estate agent with out a linc. and this is wrong do you have the control of the property in any way ?? :banghead
I think I have what you mentioned…we have several docs that are signed by the owners…However, the one that I think you’re referring too is the control doc…the “memorandum (affidavit) of option” that now gives us the control of the property. As soon as this is signed by the owner(s) and it’s also notorized, it’s then filed with the county. Does this give us the control that you’re referring to?
That’s what I suspected. When one of these investigations goes down, it is usually the result of an envious or ignorant Realtor, who isn’t making too much money.
“Control” of the property simply means you have an agreement with the owner that allows you to buy, sell, lease, sublease, and/or assign your interest in the deal. You are in the middle as a principal. You are not brokering real estate without a license!
What/who’s contracts are you using?
I have good legal news from today. I met w/ a great real estate attorney. After he reviewed all of my docs, everything we’re doing is legal and there’s no problem with us or for anyone doing lease options in Oregon…as long as the docs are all correct between the buyers and the sellers. The investigator was not in today b/c of the holiday…he’ll be getting a call tomorrow from the attorney with the good news!
Exactly what I assumed would be the end result. You ought to call the whining Realtor, tell her the good news, then ask her if she wants to come work for you placing bandit signs on telephone poles at 1:00AM. :beer
:cool good to hear the news as i was out doing other things most of the day and now the trouble makers can get back in there own dirty sandboxs and play with each other :bobble
I do lease/ops in Oregon and you have just met the first of many Challenged realtors. Good for you on retaining a lawyer to review docs. You do have control of the property from the owner to do what you wish as agreed between you and owner. I ad one more item to the agreement which you may need depending on your tenant and future escape strategy. * Tenant/buyer has the right to market property prior to close including but not limited to The MLS. This one really toasts the realtors and I have had it challenged. It is bullet proof and works. I make all my purchases with “right to market prior to close” You may end up with double closes and those are the sweetest. Truly a no money down profit center ! Realtors are trained to get the listing ,sell the property, they do not get the training as a real estate invester that you are getting. Realtors will be challenged and learn from you as you grow in investing, Hope this helps :biggrin