Is this concept legal?

I have listened to educational CDs from an investor in Connecticut that speaks of a “relocation” contract. This is basically a combination of a wholesale deal in the first month, and an exclusive right to sell (lists the property as an agent) after the first month. He gets the property under contract, and attempts to assign the contract for the first month. If he is unable to assign the contract, he instead lists the property and collects real estate commission.

This sounds like an excellent opportunity if this concept is legal. Of course, intentions would have to be discussed with the sellers to be ethical, but it is meant for motivated sellers. It almost seems too good to be true, and even somewhat resembles a net listing.

What are your thoughts?

Many strategies that are legal in one state are illegal in others. Run it past the regulators of your state. That is the only opinion that matters.

djdemers - I believe most states have restrictions on who can get a commission for selling real estate. In Arizona there is a short list of people: (1) real estate agent; (2) owner; (3) lawyer working for the owner; and I believe a few others.

A regular person can’t get a commission for real estate transactions.

I would check the specific rules in your estate. Changes are you will need to get a real estate license to do it legally.

Good luck!

Thanks for the input. I forgot to mention, I am a licensed real estate agent in Massachusetts.

I doubt the AG’s office will look favorably on this type deal. Call the office and ask them.