Disclosure of real estate license - Posted by Tom


#1

Posted by Rob FL on October 22, 1998 at 21:55:01:

I re-read FL law on this subject. You responded to my post about a week ago saying that even an indirect interest in say a corporation must be disclosed if you are licensed. Well I think you are exactly right, at least in FL. I plan on modifying my documents to reflect this. I will just bury this fact in the middle of my disclosure paragraphs and I am sure no one will know the difference, but at least they will have a chance to read this fact in the documents before they sign.


#2

Disclosure of real estate license - Posted by Tom

Posted by Tom on October 21, 1998 at 11:03:14:

We have a Illinois Corporation whose three stock holders are real estate brokers. Our company does no general brokerage. We buy and sell properties exclusively under our corporate name. Do we have to disclose we are real estate brokers on our contracts?

Thank You
TOM


#3

Just a little bit different - Posted by Mike (Stl)

Posted by Mike (Stl) on October 22, 1998 at 03:28:16:

We have a Illinois Corporation whose two stock holders
are NOT real estate brokers or agents. We buy and sell properties exclusively under our corporate name. My
wife is thinking about getting here license. Do we have to disclose agent related on our contracts?


#4

Re: Disclosure of real estate license - Posted by JPiper

Posted by JPiper on October 21, 1998 at 12:58:06:

Most states require the disclosure of license status when a licensee has a direct or indirect interest in the property. Certainly 3 brokers operating through a corporation would meet this guideline, and the license status would need to be disclosed. I might add that the requirement for this disclosure has NOTHING to do with whether you are receiving or paying a commission.

I’m not familiar with the Illinois license law…so perhaps it’s different. But if I were a betting man, I would bet that disclosure of your license status is required. I would advise you to check the law.

JPiper


#5

Re: Disclosure of real estate license - Posted by Bronchick

Posted by Bronchick on October 21, 1998 at 12:52:47:

Whether you are required by law to disclose or not, you should ALWAYS disclose that you are a broker. If you are in court over any issue involved in the contract, a Judge will be very annoyed that you did not disclose and hold it against you.


#6

Re: Disclosure of real estate license - Posted by Jimbob

Posted by Jimbob on October 21, 1998 at 11:15:48:

Only if sales commissions are involved.

I am a licensed real estate agent and sometimes I buy and sell property as a private entity, no commissions, and I dont have to disclose anything about being an agent.

Other times I buy and sell properties collecting and offering commissions, then I disclose the fact I am a licensed agent.

Double check with your local board of Realtors, or a competent real estate attorney.

Jimbob


#7

Re: Just a little bit different - Posted by JPiper

Posted by JPiper on October 22, 1998 at 14:42:13:

I think it depends on whether your wife holds shares in the corporation either solely or as a joint owner of shares with you. My feeling would be that if she does she would need to disclose. If she doesn’t hold shares either solely or jointly then she wouldn’t. Check it with an attorney.

JPiper


#8

Re: Disclosure of real estate license - Posted by Redline

Posted by Redline on October 23, 1998 at 14:40:15:

I agree. Not disclosing suggests you may have had reason to hide your license status.

Anyway, my board here requires full disclosure always for any transactions.

RL


#9

Re: Disclosure of real estate license - Posted by Geff

Posted by Geff on October 21, 1998 at 13:34:48:

Yikes, you are setting yourself up for a lawsuit if you don’t disclose your agent status.

The fact that there are no commissions involved means absolutely nothing. Commission is not the deciding factor. The deciding factor is… Do you hold a real estate license or not?!? If you do, you must disclose it.

In Illinois you even have to disclose it if you are an inactive licensee.

Geff


#10

Re: Disclosure of real estate license - Posted by Stacy (AZ)

Posted by Stacy (AZ) on October 21, 1998 at 11:29:28:

The last flip I did was to an LLC, and one of the owners is a real estate broker. There were no commissions involved, it was a straight flip for cash. The broker disclosed on the contract that he is a licensed real estate broker in the state of Arizona.

My understanding is that disclosure is needed, but as Jimbob stated, the local board will be able to tell you.

Stacy