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Is Bird-Dogging Legal???

27 posts by 7 users

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· Burlington, VT


Are you licensed as an agent in MA? It makes it easier (and legal) to pay a fee for finding a deal if one has a license. Hence the question.

Is it not legal to have someone pay you an assignment fee if they take over your contract?



· Concord, Massachusetts


Providing a finder's fee is perfectly legal. Being a buyer's representative in a RE deal doesn't require a license,but I haven't found that being licensed has ever hurt.



Real Estate Consultant · Charlotte, NC


if you weren't able to work on someones behalf, there would be no power of attorneys aka attorney in fact to handle certain affairs.




Originally posted by "hcf":
Are you licensed as an agent in MA? It makes it easier (and legal) to pay a fee for finding a deal if one has a license. Hence the question.

Is it not legal to have someone pay you an assignment fee if they take over your contract?

Heather, the reason the above works is because you are not collecting a fee.

You have a legal right in the property. You are selling that right to someone else. You are not collecting a fee for brokering. You are being paid for something you own.

John Corey




Originally posted by "bmatthew":
Providing a finder's fee is perfectly legal. Being a buyer's representative in a RE deal doesn't require a license,but I haven't found that being licensed has ever hurt.

As you are licensed in one state maybe that is the rule in that state. It definitely is not in many other states.

You really need to know the state laws for where the property is located. In OR an agent is limited to $25 (buying lunch more or less).

Being a legal representative to another party where a RE transaction is taking place implies you are acting as an agent for the other party. A license, an attorney who is practicing law and a few other corner cases are covered.

As a general rule all states require a license before someone can act as an agent or representative in a RE deal. Maybe even if you do it for free. Maybe only if you get paid upon completion of the deal.

Learn the state laws. Just because people speed on the highway does not mean it is legal. Just because a guru or otherwise implied you can be a bird dog for a fee does not mean the judge will let you off with no fine or jail time.

John Corey



Real Estate Consultant · Charlotte, NC


Originally posted by "REI":
Originally posted by "bmatthew":
Providing a finder's fee is perfectly legal. Being a buyer's representative in a RE deal doesn't require a license,but I haven't found that being licensed has ever hurt.

Just because a guru or otherwise implied you can be a bird dog for a fee does not mean the judge will let you off with no fine or jail time.

John Corey

i think thats being a little hasty. my understanding with the law whether its civil or penal, there has to be an injuried victim in a suit.

check with an attorney but i don't see how someone can be hurt by a bird dog alerts a buyer into buying a home, unless there is fraud involved.

you can't regulate common law which allows a man to earn a living as long as no is cheated in the deal.

now if someone is bird doggin with the intent to defraud, now you are looking for trouble.

like i said check with an attorney but good bird dogging to you and a prosperous year.

now if the bird dog is finding the deals, negotiating the deal, running numbers, won't let the seller and buyer talk, gets both parties to sign all the documents, create the deed, create the hud, file the deed, set up the title insurance, does the inspection, then you have a bad bird dog.
:superman:

maybe i want that bird dog, if i dont get cheated. :goofy:




This post has been hidden.



GetSmart,

Check the brokerage laws in the specific states you want to do business in.

The parties that are being hurt by the bird dogs are the folks who have a license. They are one of the main sources that turn bird dogs into the state authorities.

It has nothing to do with the intent to defraud. If that is how you think the law works you will definitely get a wake up call if you do not research further. Ignorance of the law is not a defense when you face the judge.

There was a story in another thread where the person had received legal advice and they were still later brought up on charges by the state. The lawyer was wrong with their advice. That was in OH.

John Corey



Real Estate Consultant · Charlotte, NC


both of you are eluding around the core facts in my previous post.

so let me try to clear this up as simple as i can. if you are a bird dog, make sure that the person or company you are bird dogging for is not intending to defraud anyone, cheat them, or decieve them. you don't want to be tangled up dealing with scamsters.

now that is out the way, if you stay clear of fraud, deceit, as a bird dog, you will be ok. the only suit that will stick is one where someone is injuried. anybody can sue for anything nowadays.

a senator is suing GOD. so if the judicial system with let this happen they will allow you to be sued. but if no one is hurt as a result of your bird dogging, you will be just fine.

you guys are making bird dogging seem like its a white collar crime, and if it is why do you have a bird dogging forum?

i am getting confused as to the purpose of this forum community. is it to provide accurate information or trying ones best to prove another poster wrong.

it seems to me like instead of trying to prove me wrong, you would try to tell others how to proceed the right way to become successful as a bird dog from your experience.

again in my state North Carolina, you can bird dog for someone as long as no one is injured as a result. check with an attorney.

:beer:



Real Estate Consultant · Charlotte, NC


Originally posted by "REI":
GetSmart,

Check the brokerage laws in the specific states you want to do business in.

The parties that are being hurt by the bird dogs are the folks who have a license. They are one of the main sources that turn bird dogs into the state authorities.

John Corey


again you are getting in the way of common law. a bird dog is in no way hurting someone with a license, that has to be one of the sickest excuses i have ever heard, as a desperate attempt to throw someone off.

tell me how a bird dog is hurting a licensee. they aren't listing a property, they aren't negotiating the property, in most cases they aren't even communicating with the seller.

heres the NC Real Estate license law definition.

A real estate broker within the meaning of this Chapter is any person, partnership, corporation, limited liability company, association, or other business entity who for a compensation or valuable consideration or promise thereof lists or offers to list, sells or offers to sell, buys or offers to buy, auctions or offers to auction (specifically not including a mere crier of sales), or negotiates the purchase or sale or exchange of real estate, or who leases or offers to lease, or who sells or offers to sell leases of whatever character, or rents or offers to rent any real estate or the improvement thereon, for others.

now do you need it interpreted as well?

A real estate broker within the meaning of this Chapter is any person, partnership, corporation, limited liability company, association, or other business entity who for a compensation or valuable consideration or promise thereof lists or offers to list, sells or offers to sell, buys or offers to buy, auctions or offers to auction (specifically not including a mere crier of sales), or negotiates the purchase or sale or exchange of real estate, or who leases or offers to lease, or who sells or offers to sell leases of whatever character, or rents or offers to rent any real estate or the improvement thereon, for others.

this time read and follow the bold print. this is something we learned how to decipher in grade school all the commas. and do you see the last part of that statement? it says for others. a bird dog isn't making such a promise to the seller, since they may or may not have spoken. if they have spoken then maybe the bird dog is offering to buy the property their self.

the bird dog isn't offering anything to the buyer but a lead most of the time and in rare cases a contract, which is perfectly legal to sell.

do you honestly think the AG will pursue an honest working citizen, helping folks out of foreclosure and not even charging the homeowners a fee or one red cent?

you have got to be kidding, and if you are that scared to be a bird dog, i am sure investing creatively you are completely against. Because bird doggin is the first form of creative investing.

one thing you have to realize a broker is paid by the seller. in that case the bird dog would be representing the seller.

the bird dog is simply telling an investor about a lead. people get paid all the time for leads. what do you call those on line companies that sell leads for $45? How many of them are being attacked by the real estate commission? i can bet you its not worth their time.

common law is still in full force as long as it doesn't violate the current statues.

i can't believe this, honestly.

:beer: :goofy: :beer:




This post has been hidden.


Real Estate Consultant · Charlotte, NC


Originally posted by "Flipper101":

CA Civil Code sections 1695 ( a) through 1695.17 (b) 7 type written pages of legal jargon alone define foreclosure and purchase law.

1695 (a) The legislature finds and declares that homeowners whose residences are in foreclosure have been subjected to fraud, deception, and un fair dealing by home equity purchasers.............................

CC sec. 2945-2945.11 about 12 type written pages talks about " foreclosure consultants" in depth. In laymens terms, these statutes view a " bird dog" as involved with equity purchase.

They are required to hold a valid a CA licensed Real Estate License, and be bonded by a admitted surety insurer, for at least twice the fair market value of the real property that is subject of the contract.

Also see CC sec. 2985 as to how law relates to " creative contracts" and " creative transactions and finance" ....

OUCH!


i hear ya, and seriously doubt a bird dog is considered an agent. not likely.

how about making it easy for me to look at all of those pages and provide a link you are telling me about so i can see for myself.

until then i am not buying it. prove your case, i have already broken down the definition for my area. I brought it to you, now bring me yours with your interpretation.




GetSmart,

Ring the state office that regulates RE agents. Ask them about enforcement actions concerning unlicensed agents. Let them define what an agent is and why anyone receiving compensation if and only if a deal closes is an agent or middleman.

Ultimately it has nothing to do with how you think the law works. It is all about the folks in your state who enforce the license laws for RE agents.

Like people speeding on the highway or feeling that income taxes are illegal. Many choose to ignore the laws and how they are applied in the belief that common sense rules. It is a free country so they are free to hold this view and pay the price if it works out things are not as they mistakenly believed.

John Corey




Originally posted by "GetSmart":

the bird dog is simply telling an investor about a lead. people get paid all the time for leads. what do you call those on line companies that sell leads for $45? How many of them are being attacked by the real estate commission? i can bet you its not worth their time.

No believing something changes nothing about the situation.

1. You can sell information. You can sell lists. The sale is not contingent on the deal closing between the buyer and seller. The bird dog in this case is an information broker or a list broker. They will be paid $X dollars for a list and the amount will be tiny.

2. Most RE newbies that want to be bird dogs want to get paid for deals that close. They want a chunk of money that is way past a few dollars for a name, address, phone number. Hundreds of dollars is what people normally expect and they are fine with waiting until the deal closes. It is because the payment is contingent based on the deal closing that the fee crosses the line.

John Corey



Real Estate Consultant · Charlotte, NC


well the reason why i know instead of think how you stated it is in north carolina, we are in a contract state. if you sign an agreement you have to pay.

there is nothing the real estate commission here can do but try to sue for a few hundred dollars which they won't do because its not worth the hassle because when it comes down to it, the judge has the final say so.

there was a case like what you are talking about where an individual made a referral to the agent and collected a fee from the seller of the property. the bird dog won the case because in north carolina if you sign an agreement you have to honor that agreement.

the judge interpreted the law as the contract was written. so to go back to your bird dog theory, its bogus.

no matter how you flip it, attempt to tangle or wiggle your way out of it, i want to see proof. i brought the definition for a broker in north carolina, bring me all this proof you keep rambling about. show me a statute, act like we are in missouri, its the " show me state" in fact show me the definition of the state you invest in law or defintion pertaining to brokerage.

it all sounds good what you are saying in theory, but in court theory isn't going to get it. imagine you are the DA, now let me have every law, smack me with every fact you can bring, so you can attempt to prove what youre saying.

now is the time to stop all lip service, like friday said " its about the facts ma'am" . so me the facts.

until then i demand this case be dismissed on grounds of no evidence.




This post has been hidden.



Originally posted by "GetSmart":

there was a case like what you are talking about where an individual made a referral to the agent and collected a fee from the seller of the property. the bird dog won the case because in north carolina if you sign an agreement you have to honor that agreement.

the judge interpreted the law as the contract was written. so to go back to your bird dog theory, its bogus.

I am making no claims about contracts. I am talking about a regulated activities. James cites the NC statues above.

The contract might be valid. Or it might be considered unenforceable if the contract covers an illegal activity.

Refer to the NC regs above. That defines what is legal. If something is legal then you can contract to do it. If it is not legal you can still contract to do it but you can not depend on the courts to enforce the contact.

Frankly I do not care if you operate legally or illegally. What I do care about is the other readers who are not sure about the laws and think you are correct. If they check their state law and realize that many forms of being a birddog is illegal yet still want to do so, all the power to them. If they did not realize that it was illegal because they believed what you said rather than checked that is bad for the community here.

John Corey



Real Estate Consultant · Charlotte, NC


since i am wrong, interpret those regs, since you know em.




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Real Estate Consultant · Charlotte, NC


so are you just giving your opinion or are you stating facts? just wondering because no where in those codes you mentioned, have an affect on a bird dog.

those statues are clearly pointing out the limitation of a licensed person. no where does it mention a non license person collecting a fee. so now i am confused. i need your help to bring me on your page.

i went to law school but i am not a law student, however i did take up a course or two. so i need your help to clear this whole mess up.





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