Posted by Rob FL on October 25, 1998 at 17:15:52:
Maybe you and your friend could work it out so that you get a 5-10% interest in the property, a contract for deed, a lease option, or some real interest in the property. Then if you get paid, you won’t be breaking the law. Of course your broker still may fire you if you go behind his back. Depends on his office policy.
RE Investing without paying broker’s commission - Posted by Dennis Sallee
Posted by Dennis Sallee on October 25, 1998 at 16:23:41:
I am a fairly new real estate agent with no past real estate investing
experience. While I have been following this site for awhile I am not
sure how to approach this opportunity without violating real estate laws.
Scenario is this: I have a friend that has the opportunity to purchase
properties at a discount from a relative and he is offering me a “partnership”
to help him sell these properties. I have several prospective buyer’s names
as a result of my “prospect List” that I keep. I know that I could list these properties
and get paid a commission through my broker. Both of us would prefer
to work this out where we could get a sale without sharing it with my
broker. How can I do this without breaking any of the real state laws that I
am bound under. By the way, I won’t have any real interest in this property.
Just a couple of guys trying to get more bang for our buck.
RE Investing without paying broker’s commission - Posted by JPiper
Posted by JPiper on October 25, 1998 at 16:57:41:
My thought would be that you either need a ?real interest? or you need to list the properties. Without a ?real interest? if you sell these properties for a friend, you are performing an activity requiring a license. If you perform this activity without a listing agreement or without a buyer?s agency agreement, you will be in violation of the real estate act in your state, not to mention the in-house policies of your broker.
How you would handle these in the absence of an interest in the properties is clear. You would need either a listing agreement with the seller, or a buyer?s agency agreement with the buyer(s). In either case your broker gets a cut.
To obtain an interest your friend could include you with him when he buys the properties, so that your name is on the deed. An alternative would be that once you friend acquires the properties, he could quit claim you an interest, you could obtain an option or write a contract on the properties. Then you could remarket the properties to your buyers with the proper disclosures as to your interest. Chances are that your broker has a policy about property transactions for agents under his license. Obviously these would need to be followed. There is nothing in the real estate laws to prohibit you from selling a property that you have an interest in, as long as it is properly disclosed. But you would need to do this in whatever manner prescribed by your broker.
JPiper
I couldn’t agree more… - Posted by Rob FL
Posted by Rob FL on October 25, 1998 at 17:10:48:
If you don’t have an interest in the property, then you cannot get compensated to sell the property without going through your broker. To do otherwise would be illegal. Also if your broker finds out that you went behind his back, he will probably send you packing and report you to the real estate commission.
I went ahead and got my broker’s license to avoid this scenario.