how do you get around requirement for RE license? - Posted by Gary

Posted by Tom-FL on October 26, 2003 at 01:31:24:

I think that might have been Michigan. Too many states up there start with the same letters.

how do you get around requirement for RE license? - Posted by Gary

Posted by Gary on October 22, 2003 at 15:44:49:

I have just recently moved to Minnesota and sat down with an RE attorney today to discuss having his office do some of my work. During our discussions he suggested I might want to look at the state commerce dept website regarding requirements for RE license. I did and found this,

Minn Stat. 82.17, subd. 4. Real estate broker; broker. “Real estate broker” or “broker” means any person who:

(f) engages wholly or in part in the business of selling real estate to the extent that a pattern of real estate sales is established, whether or not the real estate is owned by the person. A person shall be presumed to be engaged in the business of selling real estate if the person engages as principal in five or more transactions during any 12-month period, unless the person is represented by a licensed real estate broker or salesperson.

How are those of you either in Minnesota or other states with similar statutes avoiding hassles related to selling 5 or more houses a year? Appears to me the realtor board in Minn has a very effective lobby at the state capital.

All comments are appreciated.



Re: how do you get around requirement - Posted by William Bronchick

Posted by William Bronchick on October 22, 2003 at 20:55:46:

Interestingly, the statute does not mention using multiple entities - I would ask your lawyer about using multiple entities.

Also, the 5 deal rule is a PRESUMPTION, not a limitation. That means, you can present evidence to overcome the presumption that you are not “engaged in the business” (might be difficult, though).

I imagaine you could always use the flat-fee listing services to get around it, as well as have a broker be an officer of your company for an annual “salary.” And, in fact if you are doing a lot of deals, why not use the services of an agent to help utilize your time more wisely?

Re: how do you get around requirement - Posted by Tom PA

Posted by Tom PA on October 25, 2003 at 18:15:06:

I am not sure if this was for your state or not but:

Someone mentioned on another board about being able to get a Limited Broker License. Cost is like $160 or something. Would allow you to do your own deals, not actual broker deals for others.

At least that is my limited understanding from a vague memory. Funny, the conversation wasn’t long ago and was on the Main Forum here at CREOnline. Strange how things just fade into oblivion when they don’t directly affect you.