RE license issue revistied - for Bill Bronchick - Posted by mattc - mi
Posted by mattc - mi on October 07, 2003 at 14:40:30:
Do you have an update or link for the other states?
I’m particularly interested in L/O and Straight Options
Thanks in advance,
mattc - mi
I’ve been reading the archives for an hour or so - and
came across your article here:
Bill B wrote:
I have my associate working on researching all 50 states law on the real estate broker license issue, specifically, whether you need a license to buy, sell, option, lease or otherwise deal in real estate on your own behalf as a principal.
This is what we have come up with so far…
AZ, AK, CA, TX, CT, NY, OH, PA, MN & FL all have similar licensing statutes. They define broker as one who, FOR ANOTHER, lists, sells, manages etc. There is no doubt that an investor can buy, sell, lease or option properties in these state. CO and NM statutes, while somewhat fuzzy, still permit investors to deal in lease/options.
So far, MS (Bennie Brown’s state) appears to have the only confusing statute. Read literally, the statute requires a license to buy or rent real estate, even to live in. Silly, you say, which is why I think the common law definition of “broker” would still apply: one who brings a buyer and seller together for a fee (MS law uses the “in comensation by fee or otherwise” language, which presumes an employment or agency-type relationship). We’ll see how the Bennie Brown thing unfolds, but I cannot imagine it was anything other than a fluke; I know many MS investors that have been heavily engaged in this business for 10 years or more without a hiccup.
I will post a complete state by state summary when we are finished.
In the meantime, understand that confusion will always arise when dealing with uneducated people. Once in a while, a real estate broker sees you advertising houses and may report the matter to the state licensing authorities. The real estate commission may even write you a letter, investigating the matter, but these things, handled properly, go away.
In a recent newsletter from the Colorado Real Estate Commission, the #1 Honcho wrote an article in which he bestowed upon us his vast ignorance by using “deed of trust” synonymously with “deed.” This is the sh** we investors must deal with from the “educated professionals” that work for the state,