Hey everyone,
Just wanted to get some facts about wether you need a license to practice these deals: for example, I get an option, then market the home with owner financing, lease option, contract for deed, etc. I do not have a license.
I know most investors will say, you are a principal in the transaction, therefore you do not need a license. I live in north carolina. I did some research and one of our administrators John “cash” locke spoke with the NORTH CAROLINA REAL ESTATE COMMISSION, from what they said, if you don’t record your contracts in public records, it is pretty convincing that you are acting as broker without a license. what do you think? I typically do not put in public records if it is short term option.
here is the conversation below
B. M. Brogden, Jr.
Chief Deputy Legal Counsel
NC Real Estate Commission"
I emailed Mr. Brogden and requested his phone number so that we could discuss Subject To investing in North Carolina. He graciously responded with his phone number.
I called Mr. Brogden in the afternoon of August 24, 2004.
Here is a synopsis of our conversation and was reviewed by Mr. Brogden:
North Carolina has no problem with Subject To investing as long as the following guidelines are adhered to:
The problem with the use of a “Land Trust” as a means of concealing a violation of the “due-on-sale” (DOS) clause is that even where the designated trustee is a real person or entity, the identity of the actual beneficiary is concealed or obscured.
This can constitute a deceptive, misleading or unfair trade practice in violation of Chapter 75, N.C.G.S, and, in the opinion of the Commission legal staff, is a circumstance tending to show the person actually controlling the trust is attempting to act as a real estate broker without a license.
[b]Much the same is true for agreements, such as installment land sale contracts or lease/option or lease/purchase arrangements that are not properly recorded in a timely manner in the chain of title. No reasonable person or prudent investor would fail to immediately and properly record a document transferring an interest in title due to the risk of loss associated with the failure to timely and properly record.
A person or firm truly dealing on their own account would typically obtain a deed, option or contract, properly notarized and recorded, in order to protect their investment. Failure to do so is very convincing evidence that there is no real investment and that such person or firm is no more than an agent without a license.[/b]