I’ve been wholesaling houses in Iowa with no problems until recently.I tried to form a working relationship with an agent but his boss told me that they couldn’t work with me because assigning contracts are illegal.They called the board of realtors and they also said it was illegal and that you must have a license to link buyers/sellers for a fee.This sounds crazy and I have lawyers that have done closings for me.I need advice on finding a loophole or an altenative way to wholesale in this manner.They also claim birddogging is illegal without a license.What should I do?
Neither assignments or birddogging are illegal. Find a new agent. They are simply protecting their monopoly.
Someone is giving you bad info, probably to protect their own interests. Or they are just flat out ignorant. Like jmd already wrote, assignments are not illegal. Why don’t you ask this Broker for the specific law that supports his position?
I will definitely request the specific law because I think they have ulterior motives
The agent may state that assignment is “illegal” because every agent provided sales contract I’ve ever seem has a clause prohibiting assignments. That doesn’t mean YOUR contract must have a clause prohibiting assignments. My contracts specifically allow assignments. Even so, a clause prohibiting assignments doesn’t make it “illegal” but it would be a breach of contract to assign a contract with such a clause. You can always cross out clauses you don’t agree with before signing or, better yet, use you own contracts worded exactly the way you want.
Never let anyone tell you what’s illegal or legal unless it’s your attorney advising you on that.
I have definitely read that birddogging is illegal in many areas because you are essentially collecting a fee based on the successful completion of a real estate transaction. Check with an attorney on that. But I have never heard of wholesaling being illegal.
Why not call it a “finders fee”. Thats what it is anyway. But I’m not an attorney… Why do so many people have to make it difficult to make Money?
“Why do so many people have to make it difficult to make Money?”
In my experience, it is generally RE agents/brokers trying to protect their monopoly. YMMV.