Charging Finder's Fee -- Need License? - Posted by Rich

Real Estate Investing Real Estate Financing
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Posted by Nate on February 22, 2001 at 12:58:19:

I agree with Tom. Do not know your state law but in most states you would be considered to be acting as a real estate agent without a license. Why not get the property under contract and flip it to the buyer? That way your involvement is as a principal, and no license is required for that.

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Charging Finder’s Fee – Need License? - Posted by Rich

Posted by Rich on February 22, 2001 at 12:20:25:

Hello,

Just suppose I were to comb the listing of various realtors to find a property of a specific type and price range for a potential buyer - house, lot or whatever, and then charge that potential buyer a percentage of the asking price as a “finder’s fee” should he/she purchase the real estate. Here’s the question: can I do this without having a real estate license?

I am assuming that since I am not listing the property or taking part negotiating for the property I would not need a realtors license. Am I right? Just don’t now. All I would really be doing is showing the buyer where the deal is he/she is looking for and pointing them to the realtor or individual who has the property type they are looking for, and collecting a “finders fee” for this service.

So, do I need a real estate license to do this and to collect a finders fee?

Thank you – your insight is apprectiated!

Regards,
Rich

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Re: Charging Finder’s Fee – Need License? - Posted by Tom (CO)

Posted by Tom (CO) on February 22, 2001 at 17:10:43:

Short answer is yes you need a real estate license to do that. There is no such thing as a Realtor license but there are a lot of fees to belong.

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Re: Charging Finder’s Fee – Need License? - Posted by Tom (NY)

Posted by Tom (NY) on February 22, 2001 at 12:45:56:

Don’t know what state your in, but To my knowlage you need a real estate license to recieve any type of remuneration from a real estate transaction in any state.

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Also most states require - Posted by David Krulac

Posted by David Krulac on February 22, 2001 at 16:18:09:

a license in order to rent property, other than your own. however this is often ignored.