I’ve been told it was “practicing real estate without a license” when an investor generally advertises for buyers (ie: newspaper) without having a specific property that they’re a principal in and/or advertising for ? So another words, an investor who own no properties and is NOT a principal or contracted with any properties, then therefore CAN NOT run ads to solicit buyers for his/her investor buyers list?
Is this true or false? IF true, could someone please site reference? Thanks!
Who told you that?
Raj
$5 says a realtor…
Yea, a realtor.
So it’s false, eh?
Ignore him, he’s just jealous.
In my 20 plus years in real estate I would rank realtors right below Lawyers and Used car salesman. There are SOME good ones but in my experience NEVER trust ANYTHING a realtor tells you. This is especially true if your dealing with comps provided by the SELLING agent.
These guy’s are sucking wind right now because of this downturn. A friend of mine manages a Home Depot in Florida and told me the majority of applications he’s receiving for the upcoming spring hiring are realtors. Hey if they can’t sell houses at least they can give you the wrong advice on fixing them!
I know quite a few and most are total morons, there are a few good ones though. One idiot in particular is family. This family member is a recovering pill popper with no experience prior to selling real estate that would help her in her new career. She’s only been on the job a short time but talks like she knows it all, sadly someone that she just took on as a client wouldn’t know if she’s :bs 'ing or not. I don’t mention anything around her about my aspirations and just sit back and listen to the fool talk at family functions.
I know I’m about to step in it, but here goes.
There’s always confusion around this issue. Every state real estate commission has rules against practicing real estate without a license, but most people aren’t familiar with the rules. You have to be licensed to “represent” another person and perform acts on their behalf. You can show your own properties and advertise, etc., but you can’t “represent” a home owner. For example, you can’t locate buyers on behalf of another owner for a fee/commission.
There’s a lot of gray areas, so it’s best to check with your state’s real estate commission for full clarification. Penalties vary, but could be a few thousand dollars in fines. The most common violation is when agents or brokers use unlicensed assistants for duties that require a license.
I tried finding some resources for clarification, but only found this one article. http://www.texasrealestate.com/web/1/11/more/George051605.cfm
[i]Dear George: We have been approached by several people who call themselves “real estate consultants.” They locate buyers for sellers in distress, and their fee is the difference between the sales price and the seller’s loan balance, which can often be $50,000 or more on one sale. Are these consultants practicing real estate without a license? Can they be paid a fee without being a licensed real estate agent?
Dear Suspicious: It does appear that these real estate consultants are practicing real estate without a license, according to the Texas Real Estate License Act (Section 1101.002, Texas Occupations Code). To verify if someone is a Texas real estate licensee, visit TREC’s Web site and select Licensee Info Search.[/i]
For people in Texas, go to TREC’s website and read the Texas Real Estate License act. § 1101.002
Dee,
those real estate consultants are morons if they’re doing that…but maybe the writer of that question has it wrong also. i think part of a pitch that a wholesaler uses is to explain that they’ll be finding a buyer to close the deal on the house, after they themselves contract to buy it.
you hit the nail on the head about the details of practing real estate agency. if you negotiate on behalf of ANOTHER PARTY - that requires a license. but if you own it - then it’s perfectly fine to advertise - duh.
and as far as building a buyer’s list - i’m almost 100% sure that there’s absolutely nothing illegal about that - you’re doing it for yourself!!!
you’re not building the list for another person or for a specific house…that you don’t own. you’re building the list for your own business!
Exactly.