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.